Flex Space with Detached
For Sale
$1,290,000
507 E Interstate 2, Pharr, TX 78577
COMMERCIAL - Pharr, TX
Property Size5,766 SF
Lot Size1.00 Acre
Price / SF$223.73
Days on Market129
Property Features for 507 E Interstate 2
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
25
Parking features
Off Street, Driveway
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
Central, Electric (Heating)
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: Aug 4
Last Checked: Aug 12 at 10:06PM
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.
Flex space property on a 1-acre lot featuring a 4,500+ SF main building and a detached 1,200 SF warehouse. The main building was previously used as an insurance office and has been fully gutted to the studs, offering a blank-slate interior for a custom buildout. The prior configuration included approximately 15 offices, a conference/boardroom, and restrooms. A detached warehouse component supports storage and operations, and the property also includes storage/workshop features.
The property is located along the frontage road of Interstate 2 with exceptional visibility, just minutes from the I-2 & I-69C interchange. It offers 20+ existing parking spaces with additional land for expansion or redevelopment.
Built in 1985, the facility has a flat roof and includes central heating and central air with electric HVAC. Parking is available via driveway and off-street spaces.
The property is located along the frontage road of Interstate 2 with exceptional visibility, just minutes from the I-2 & I-69C interchange. It offers 20+ existing parking spaces with additional land for expansion or redevelopment.
Built in 1985, the facility has a flat roof and includes central heating and central air with electric HVAC. Parking is available via driveway and off-street spaces.
Key Highlights
- 1‑acre lot with flex space main building plus detached warehouse
- 4,500+ SF main building fully gutted to the studs for custom buildout
- Detached 1,200 SF warehouse suitable for storage or operations
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
Property Profile
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
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 - Flex space opportunity with a main building and detached warehouse, ready for buildout with ample on-site parking.
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 lot with flex space main building plus detached warehouse; 4,500+ SF main building fully gutted to the studs for custom buildout; Detached 1,200 SF warehouse suitable for storage or operations
