Flex Space with Detached
For Sale
$1,290,000
507 E Interstate 2, Pharr, TX 78577
Commercial Sale, Pharr, TX
Property Size5,766 SF
Lot Size1.00 Acre
Price / SF$223.73
Days on Market175
Property Features for 507 E Interstate 2
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
25
Parking features
Driveway, Off Street
Exterior features
Storage, Workshop
Appliances
Water Heater (None)
Subdivision
Hidalgo County Farm Bureau
Directions
From I Road (Veterans Blvd), continue on the frontage road going west. Property is the former Hidalgo County Texas Farm Bureau office located right next to the Bingo Hall.
Standard status
Active
APN
H255500000000000
Size
5,766 SF
Lot size
1.00 Acre
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
15975
Utilities
Heating system
Electric (Heating), Central
Cooling system
Electric, Central Air
Building Details
Year built
1985
Floors in Building
1
Building materials
Aluminum Siding, Brick
Roof type
Flat
Additional Structures
Storage, Workshop
Listing Agency:
RE/MAX Platinum · RE/MAX International
(956) 668-8555
Listed By:
Jonathan Lindley · License #542810
(956) 929-1583
Added: Apr 6
Changed: Sep 15
Last Checked: Sep 27 at 5:06AM
MLS# 500913
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.
This 1-acre flex property includes a 5,766-square-foot commercial improvement completed in 1985. The main building contains 4,500+ square feet and has been stripped to the studs, creating a blank interior for a future buildout. A detached 1,200-square-foot warehouse provides separate storage or operational space. The property also includes flat roofing, aluminum siding and brick construction, central air, electric heating, and off-street parking.
Positioned along the frontage road of Interstate 2 in Pharr, the property is minutes from the I-2 and I-69C interchange. More than 20 parking spaces are already in place, with additional land available on the 1-acre site. The former office layout included approximately 15 offices, a conference/boardroom, and restrooms, offering a reference point for reconfiguring the main structure into office, medical, or multi-tenant space.
Positioned along the frontage road of Interstate 2 in Pharr, the property is minutes from the I-2 and I-69C interchange. More than 20 parking spaces are already in place, with additional land available on the 1-acre site. The former office layout included approximately 15 offices, a conference/boardroom, and restrooms, offering a reference point for reconfiguring the main structure into office, medical, or multi-tenant space.
Key Highlights
- 1‑acre site in Pharr along the Interstate 2 frontage road
- 5,766‑square‑foot commercial property completed in 1985
- Main building contains 4,500+ square feet and is gutted to the studs
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
$96,448
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
7.48%
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%
$1,928,960
$1.9M
Cap Rate 7%
$1,377,829
$1.4M
Cap Rate 9%
$1,071,644
$1.1M
Market Conditions
NOI Build-Up for 5,766 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
$177.1K $30.72/SF
− Vacancy
−$48.5K −$8.42/SF
EGI
$128.6K $22.30/SF
− OpEx
−$32.1K −$5.58/SF
NOI
$96.4K $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%
$1,928,960
Cap Rate 7%
$1,377,829
Cap Rate 9%
$1,071,644
Alternative Uses
Best Use
Office B
$1.38M
$1.21M – $1.61M
NOI $96,448 @ 7.0% cap · market cap 7.48%
Second Best
Warehouse
$526.3K
$460.6K – $614.1K
NOI $36,844 @ 7.0% cap · market cap 2.86%
Theoretical Best
Hotel Hospitality
$4.34M
$3.80M – $5.07M
NOI $304,012 @ 7.0% cap · market cap 23.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road 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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South region
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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 - Freestanding commercial property with a build-to-suit main building, separate warehouse, parking, and room for expansion.
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 site in Pharr along the Interstate 2 frontage road; 5,766‑square‑foot commercial property completed in 1985; Main building contains 4,500+ square feet and is gutted to the studs
