Small Office Space for
For Sale
$299,000
507 N Lee Ave, Odessa, TX 79761
Commercial Sale, Odessa, TX
Property Size1,800 SF
Lot Size0.16 Acres
Price / SF$166.11
Days on Market149
Property Features for 507 N Lee Ave
General Information
Property type
Residential
Property subtype
Office
Subdivision
Original Town
Standard status
Active
APN
22000.0076000000
Size
1,800 SF
Lot size
0.16 Acres
Taxes and HOA fees
Tax Annual Amount
2015
Building Details
Year built
1955
Building materials
Brick
Roof type
Flat
Listing Agency:
The Real Estate Group
(432) 272-4848
Listed By:
Clara Garcia · License #0815964
(432) 934-6039
Added: Apr 19
Changed: Aug 20
Last Checked: Sep 14 at 10:06AM
MLS# 164495
Copyright © 2026 Odessa Board 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 sale offering presents a small office space totaling approximately 1,800 square feet, situated on a lot measuring about 0.1607 acres. The property is listed for $299,000 and is being marketed as an Office Unit/Office Space.
Located at 507 N Lee Ave in Odessa, Texas 79761 (Ector County), the building is positioned for straightforward access from the local roadway network serving the area.
This size and configuration typically suits owner-operators and small teams looking for a dedicated workplace without the scale of a larger multi-tenant office building. The property’s straightforward footprint can be a practical fit for professional services and other office-based uses, provided the intended tenant’s operational needs align with the available space. For brokers and buyers, it offers a compact option within the Odessa market for those focused on control, simplicity, and manageable facility scale.
Located at 507 N Lee Ave in Odessa, Texas 79761 (Ector County), the building is positioned for straightforward access from the local roadway network serving the area.
This size and configuration typically suits owner-operators and small teams looking for a dedicated workplace without the scale of a larger multi-tenant office building. The property’s straightforward footprint can be a practical fit for professional services and other office-based uses, provided the intended tenant’s operational needs align with the available space. For brokers and buyers, it offers a compact option within the Odessa market for those focused on control, simplicity, and manageable facility scale.
Key Highlights
- Brick construction
- Flat roof
- Built in 1955
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
$23,956
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
8.01%
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%
$479,120
$479.1K
Cap Rate 7%
$342,229
$342.2K
Cap Rate 9%
$266,178
$266.2K
Market Conditions
NOI Build-Up for 1,800 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
$37.8K $21.00/SF
− Vacancy
−$5.9K −$3.26/SF
EGI
$31.9K $17.75/SF
− OpEx
−$8.0K −$4.44/SF
NOI
$24.0K $13.31/SF
Area
Odessa, TX
Vacancy
15.50%
Lease Rate
$21.00 /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%
$479,120
Cap Rate 7%
$342,229
Cap Rate 9%
$266,178
Alternative Uses
Best Use
Office B
$342.2K
$299.5K – $399.3K
NOI $23,956 @ 7.0% cap · market cap 8.01%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$2.62M
$2.29M – $3.05M
NOI $183,176 @ 7.0% cap · market cap 61.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,324
Businesses Nearby
Explore this area
Business Placement
Demographics for 79761, TX
30,187
Population
13,591
Households
2.2
Avg Household Size
35
Median Age
14%
College-Educated
76%
High-School Grad
10.4 sq mi
ZIP Area
2,903
Density / Sq Mi
$69,279
Median Household Income
$42,724
Median Earnings
$1,246
Median Rent
$158,400
Median Home Value
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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 units - An approximately 1,800-square-foot office space offered for sale on a small lot in Odessa.
Where is this office units located?
The property is located at 507 N Lee Ave Odessa, TX.
What is the asking price?
The asking price for this property is $299,000.
What are key features of this property?
This property features: Brick construction; Flat roof; Built in 1955
