Mixed-Use Retail and Office
For Sale
$869,856
5121 S Custer Road 200, McKinney, TX 75070
C2 Commercial Mixed-Use zoning accommodates retail, office, and medical users.
Property Size2,500 SF
Price / SF$408.19
Days on Market26
Property Features for 5121 S Custer Road 200
General Information
Standard status
Active
Size
2,500 SF
Zoning
commercial
Additional Details
Furnished
No
Amenities
Central Air
Central
Common
Building Details
Building Size
2,500 SF
Year Built
2025
Stories
1
Tenancy
Multi
Listing Agency:
Zenappy Realty
(214) 430-2895
Listed By:
Sasidhar Kaligotla · License #0822948
(214) 430-2895
Source:
Evrealestate
Added: Jul 30
Changed: Aug 23
Last Checked: Aug 20 at 10:14PM
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 Zenappy Realty
Investment Insights
Based on property information with market context.
This mixed-use commercial condo property offers 2,131 SF of contiguous space in a multi-tenant retail, office, and medical project. The suite is delivered in dark shell condition, allowing the interior layout and finishes to be tailored to the approved user’s requirements. C2 Commercial Mixed-Use zoning provides a framework for retail, office, and medical occupancy.
The property is located at 5121 South Custer Road in McKinney, near the intersection of Custer Road, Main Street, and Stacy Road. Aldi and CVS Pharmacy are identified as neighboring national anchors, with schools, parks, restaurants, and residential communities nearby. Household incomes are reported at approximately $115,000–$125,000 within a 1- to 5-mile radius.
The property is located at 5121 South Custer Road in McKinney, near the intersection of Custer Road, Main Street, and Stacy Road. Aldi and CVS Pharmacy are identified as neighboring national anchors, with schools, parks, restaurants, and residential communities nearby. Household incomes are reported at approximately $115,000–$125,000 within a 1- to 5-mile radius.
Key Highlights
- 2,131 SF of contiguous mixed‑use commercial condo space
- C2 Commercial Mixed‑Use zoning
- Dark shell delivery allows interior customization, subject to approval
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
$34,253
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
3.94%
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%
$685,060
$685.1K
Cap Rate 7%
$489,329
$489.3K
Cap Rate 9%
$380,589
$380.6K
Market Conditions
NOI Build-Up for 2,131 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
$51.4K $24.12/SF
− Vacancy
−$2.5K −$1.16/SF
EGI
$48.9K $22.96/SF
− OpEx
−$14.7K −$6.89/SF
NOI
$34.3K $16.07/SF
Area
McKinney, TX
Vacancy
4.80%
Lease Rate
$24.12 /SF/Yr
Expense Ratio
30.00%
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%
$685,060
Cap Rate 7%
$489,329
Cap Rate 9%
$380,589
Alternative Uses
Best Use
Retail
$489.3K
$428.2K – $570.9K
NOI $34,253 @ 7.0% cap · market cap 3.94%
Second Best
Mixed Use
$452.1K
$395.6K – $527.4K
NOI $31,645 @ 7.0% cap · market cap 3.64%
Theoretical Best
Office A
$599.1K
$524.2K – $699.0K
NOI $41,938 @ 7.0% cap · market cap 4.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
250
Businesses Nearby
Explore this area
Business Placement
Demographics for 75070, TX
57,712
Population
24,323
Households
2.4
Avg Household Size
34
Median Age
57%
College-Educated
98%
High-School Grad
11.3 sq mi
ZIP Area
5,107
Density / Sq Mi
$106,549
Median Household Income
$65,855
Median Earnings
$1,799
Median Rent
$429,300
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.
Frequently Asked Questions
What type of property is this?
Mixed-use property - C2 Commercial Mixed-Use zoning accommodates retail, office, and medical users.
Where is this mixed-use property located?
The property is located at 5121 S Custer Road 200 McKinney, TX.
What is the asking price?
The asking price for this property is $869,856.
What are key features of this property?
This property features: 2,131 SF of contiguous mixed‑use commercial condo space; C2 Commercial Mixed‑Use zoning; Dark shell delivery allows interior customization, subject to approval
