Office Building with Five
For Sale
$995,000
506 W University Drive, Edinburg, TX 78539
Commercial Sale, Edinburg, TX
Property Size3,966 SF
Lot Size0.33 Acres
Price / SF$250.88
Days on Market112
Property Features for 506 W University Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
15
Appliances
Water Heater (Other)
Subdivision
Edinburg Original Townsite
Directions
From US-281 (I-69C), take the exit for University Dr (Hwy 107). Head West on University Dr for approximately 1 mile. Pass the Hidalgo County Courthouse square. The property will be located on W University Dr.
Standard status
Active
APN
E330000258000400
Size
3,966 SF
Lot size
0.33 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
6499
Utilities
Heating system
Electric (Heating), Zoned
Cooling system
Zoned, Electric
Building Details
Year built
1986
Floors in Building
1
Building materials
Brick, Stucco
Roof type
Flat
Listing Agency:
Keller Williams Realty RGV
(956) 928-1155
Listed By:
Jaime Lee Gonzalez · License #713189
(956) 599-8400
Added: Jun 8
Changed: Sep 14
Last Checked: Sep 27 at 12:06AM
MLS# 492811
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Constructed in 1986, this 3,966-square-foot office building sits on 0.326 acres and provides a practical layout for professional use. The interior includes an open workspace, reception area, kitchen, five private offices, and a utility room. Brick and stucco construction, a flat roof, and zoned electric heating and cooling complete the physical profile.
The property is located at 506 W University Drive in Edinburg, with exposure along West University Drive. It is near the Hidalgo County Courthouse and UTRGV, and the parking lot is accessible from the alley. The site is within the 78539 postal area of Hidalgo County.
The property is located at 506 W University Drive in Edinburg, with exposure along West University Drive. It is near the Hidalgo County Courthouse and UTRGV, and the parking lot is accessible from the alley. The site is within the 78539 postal area of Hidalgo County.
Key Highlights
- 3,966 SF office building on 0.326 acres
- Five office spaces plus reception, open workspace, kitchen, and utility room
- Located at 506 W University Drive, Edinburg, TX 78539
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$56,789
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.71%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,135,780
$1.1M
Cap Rate 7%
$811,271
$811.3K
Cap Rate 9%
$630,989
$631.0K
Market Conditions
NOI Build-Up for 3,966 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$88.0K $22.20/SF
− Vacancy
−$12.3K −$3.11/SF
EGI
$75.7K $19.09/SF
− OpEx
−$18.9K −$4.77/SF
NOI
$56.8K $14.32/SF
Area
Edinburg, TX
Vacancy
14.00%
Lease Rate
$22.20 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,135,780
Cap Rate 7%
$811,271
Cap Rate 9%
$630,989
Alternative Uses
Best Use
Office B
$811.3K
$709.9K – $946.5K
NOI $56,789 @ 7.0% cap · market cap 5.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.03M
$900.4K – $1.20M
NOI $72,035 @ 7.0% cap · market cap 7.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,237
Businesses Nearby
Explore this area
Business Placement
Demographics for 78539, TX
37,686
Population
15,759
Households
2.4
Avg Household Size
34
Median Age
37%
College-Educated
84%
High-School Grad
12.2 sq mi
ZIP Area
3,089
Density / Sq Mi
$64,864
Median Household Income
$38,413
Median Earnings
$1,034
Median Rent
$198,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Functional professional office property with reception, open workspace, kitchen area, and alley access to on-site parking.
Where is this office building located?
The property is located at 506 W University Drive Edinburg, TX.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 3,966 SF office building on 0.326 acres; Five office spaces plus reception, open workspace, kitchen, and utility room; Located at 506 W University Drive, Edinburg, TX 78539
