Equipped Commercial Property on
For Sale
Contact for pricing
5123 W Orem Dr, Houston, TX 77045
Turn-key commercial property ideal for automotive, service, or retail.
Property Size3,368 SF
Lot Size0.20 Acres
Price / SF$326.60
Days on Market161
Property Features for 5123 W Orem Dr
General Information
Standard status
Active
Size
3,368 SF
Lot size
0.20 Acres
Property subtype
Industrial, Mixed Use, Retail, Special Purpose
Zoning
No Zoning
Building Details
Year Renovated
2024
Buildings
1
Stories
1
Units
1
Listing Agency:
Infinity Real Estate Group
(832) 264-8934
Listed By:
Mona Malone · License #507230
Source:
Crexi
Added: Mar 5
Changed: Aug 8
Last Checked: Aug 12 at 5:02AM
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 Infinity Real Estate Group
Investment Insights
Based on property information with market context.
Located in Houston’s Central Southwest area, this commercial property is suitable for automotive, service, or retail use. The single-story building, constructed in 1975 and 1978, with interior updates and remodeling completed in 2024, has a size of 3,368 square feet and sits on an 8,840 square foot lot. It features three service bays with roll-up doors, two separate paint bays also with roll-up doors, a spacious customer waiting area, private offices, and a staff break room. The property includes on-site parking and frontage and visibility on West Orem Drive, with access to Houston markets. Existing equipment, car lifts, a frame machine, and furniture are included in the sale, along with vehicles on the property. Previously used as a car repair and vehicle inspection business, this facility is suitable for owner-operators or investors. The property offers income generation or redevelopment potential in an active, high-demand corridor.
Key Highlights
- Fully equipped, turn‑key facility ideal for automotive, service, or retail use, allowing for immediate operation.
- Includes most existing equipment, car lifts, frame machine, furniture, and vehicles.
- Prime location in Houston’s Central Southwest with excellent frontage and visibility on busy West Orem Drive.
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
$45,669
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
4.15%
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%
$913,380
$913.4K
Cap Rate 7%
$652,414
$652.4K
Cap Rate 9%
$507,433
$507.4K
Market Conditions
NOI Build-Up for 3,368 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
$69.1K $20.52/SF
− Vacancy
−$3.9K −$1.15/SF
EGI
$65.2K $19.37/SF
− OpEx
−$19.6K −$5.81/SF
NOI
$45.7K $13.56/SF
Area
Houston, TX
Vacancy
5.60%
Lease Rate
$20.52 /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%
$913,380
Cap Rate 7%
$652,414
Cap Rate 9%
$507,433
Alternative Uses
Best Use
Retail
$652.4K
$570.9K – $761.2K
NOI $45,669 @ 7.0% cap · market cap 4.15%
Second Best
Industrial
$271.3K
$237.4K – $316.5K
NOI $18,990 @ 7.0% cap · market cap 1.73%
Theoretical Best
Office A
$866.1K
$757.8K – $1.01M
NOI $60,624 @ 7.0% cap · market cap 5.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
200
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 77045, TX
32,411
Population
10,802
Households
3
Avg Household Size
35
Median Age
19%
College-Educated
74%
High-School Grad
11.2 sq mi
ZIP Area
2,894
Density / Sq Mi
$61,166
Median Household Income
$36,811
Median Earnings
$1,260
Median Rent
$163,600
Median Home Value
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Turn-key commercial property ideal for automotive, service, or retail.
Where is this auto shop located?
The property is located at 5123 W Orem Dr Houston, TX.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Fully equipped, turn‑key facility ideal for automotive, service, or retail use, allowing for immediate operation.; Includes most existing equipment, **car lifts, frame machine, furniture, and vehicles.**; Prime location in Houston’s Central Southwest with excellent frontage and visibility on busy West Orem Drive.
