Flex Space with Detached
For Sale
$1,290,000
507 E Interstate 2, Pharr, TX 78577
Gutted main building with former office buildout plus a detached warehouse and 20+ parking spaces on a 1-acre site.
Property Size5,766 SF
Lot Size1.00 Acre
Price / SF$286.67
Days on Market48
Property Features for 507 E Interstate 2
General Information
Standard status
Active
Size
5,766 SF
Total Parking Spaces
20
Lot size
1.00 Acre
Property subtype
Commercial
Additional Details
Highway Access
Yes
Office Units
15
Taxes and HOA fees
Annual Taxes
$15,975
Building Details
Building Size
5,766 SF
Year Built
1985
Listing Agency:
RE/MAX Platinum
Listed By:
Jonathan Lindley · License #542810
(956) 668-8555
Source:
Primeluxuryrealestate
Added: Jul 20
Changed: Aug 24
Last Checked: Sep 4 at 11:03AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of RE/MAX Platinum
Investment Insights
Based on property information with market context.
This for-sale flex property includes a main building of approximately 4,500+ square feet that has been fully gutted to the studs for a custom buildout. The property previously operated as an insurance office and was laid out with approximately 15 offices, a conference/boardroom, and restrooms, providing a starting point for office-focused or suite-style reconfiguration. A detached 1,200 square foot warehouse is also on site for storage or operations, along with 20+ existing parking spaces and additional land that may support future expansion.
The site is located along the frontage road of Interstate 2 and is described as just minutes from the I-2 & I-69C interchange, supporting convenient access for business traffic.
With a blank-slate interior and both office and warehouse improvements, the property can be adapted for professional office use, medical, or multi-tenant suite configurations based on the buyer’s plans.
The site is located along the frontage road of Interstate 2 and is described as just minutes from the I-2 & I-69C interchange, supporting convenient access for business traffic.
With a blank-slate interior and both office and warehouse improvements, the property can be adapted for professional office use, medical, or multi-tenant suite configurations based on the buyer’s plans.
Key Highlights
- 1‑acre commercial property in Pharr with 4,500+ SF main building and a detached 1,200 SF warehouse
- Main building is fully gutted to the studs and ready for a custom buildout
- Former office setup included approx. 15 offices, conference/boardroom, and restrooms
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
$75,272
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
5.84%
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%
$1,505,440
$1.5M
Cap Rate 7%
$1,075,314
$1.1M
Cap Rate 9%
$836,356
$836.4K
Market Conditions
NOI Build-Up for 4,500 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
$138.2K $30.72/SF
− Vacancy
−$37.9K −$8.42/SF
EGI
$100.4K $22.30/SF
− OpEx
−$25.1K −$5.58/SF
NOI
$75.3K $16.73/SF
Area
Hidalgo County, TX
Vacancy
27.40%
Lease Rate
$30.72 /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%
$1,505,440
Cap Rate 7%
$1,075,314
Cap Rate 9%
$836,356
Alternative Uses
Best Use
Office B
$1.08M
$940.9K – $1.25M
NOI $75,272 @ 7.0% cap · market cap 5.84%
Second Best
Warehouse
$410.8K
$359.4K – $479.2K
NOI $28,754 @ 7.0% cap · market cap 2.23%
Theoretical Best
Hotel Hospitality
$3.39M
$2.97M – $3.95M
NOI $237,263 @ 7.0% cap · market cap 18.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
15
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
820
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78577, TX
79,937
Population
26,568
Households
3
Avg Household Size
30
Median Age
18%
College-Educated
70%
High-School Grad
26.0 sq mi
ZIP Area
3,075
Density / Sq Mi
$49,768
Median Household Income
$28,186
Median Earnings
$988
Median Rent
$111,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Sispresso — 107 E Ferguson Ave Suite B, Pharr, TX 78577
Frequently Asked Questions
What type of property is this?
Flex space - Gutted main building with former office buildout plus a detached warehouse and 20+ parking spaces on a 1-acre site.
Where is this flex space located?
The property is located at 507 E Interstate 2 Pharr, TX.
What is the asking price?
The asking price for this property is $1,290,000.
What are key features of this property?
This property features: 1‑acre commercial property in Pharr with 4,500+ SF main building and a detached 1,200 SF warehouse; Main building is fully gutted to the studs and ready for a custom buildout; Former office setup included approx. 15 offices, conference/boardroom, and restrooms
