Two-Building Flex
For Sale
$475,000
520 S Sam Rayburn Freeway, Sherman, TX 75090
CommercialSale, Sherman, TX
Property Size4,400 SF
Lot Size0.39 Acres
Price / SF$107.95
Days on Market59
Property Features for 520 S Sam Rayburn Freeway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Parking features
Garage, Open, Parking Lot, Off Street
Directions
.
Standard status
Active
APN
161724
Lot size
0.39 Acres
Taxes and HOA fees
Tax Description
G-0763 MCANAIR J B, ACRES .2978
Tax Annual Amount
4205
Legal Description
G-0763 MCANAIR J B, ACRES .2978
Utilities
Sewer type
Public Sewer
Cooling system
Window Unit(s)
Water source
Public
Amenities
office reception area
Building Details
Year built
1940
Floors in Building
1
Number of units
1
Flooring type
Concrete
Building materials
AluminumSiding, MetalSiding, SteelSiding
Roof type
Metal
Listing Agency:
Keller Williams Realty DPR
(972) 732-6000
Listed By:
Seychelle Van Poole · License #0522221
(972) 732-6000
Added: Jul 2
Changed: Aug 19
Last Checked: Aug 29 at 8:06PM
MLS# 21231798
Copyright © 2026 North Texas Real Estate Information Systems, Inc. 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 flex property includes two commercial buildings positioned on two separate legal parcels. The improvements feature approximately 14-foot ceiling heights, multiple overhead doors, an office reception area, fenced yard space, asphalt parking, concrete flooring, metal roofing, and window-unit cooling. Public water and public sewer serve the property, which was built in 1940.
The site fronts S Sam Rayburn Freeway in Sherman and is located minutes from US-75. The offering includes the buildings and land only; business operations, equipment, inventory, and personal property are excluded. Zoning, permitted uses, and development requirements should be independently verified with the City of Sherman.
The site fronts S Sam Rayburn Freeway in Sherman and is located minutes from US-75. The offering includes the buildings and land only; business operations, equipment, inventory, and personal property are excluded. Zoning, permitted uses, and development requirements should be independently verified with the City of Sherman.
Key Highlights
- Two commercial buildings on two separate legal parcels
- Approximately 14‑foot ceiling heights and multiple overhead doors
- Fenced yard space with asphalt parking
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
$27,833
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
5.86%
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%
$556,660
$556.7K
Cap Rate 7%
$397,614
$397.6K
Cap Rate 9%
$309,256
$309.3K
Market Conditions
NOI Build-Up for 4,400 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
$35.9K $8.16/SF
− Vacancy
−$3.2K −$0.72/SF
EGI
$32.7K $7.44/SF
− OpEx
−$4.9K −$1.12/SF
NOI
$27.8K $6.33/SF
Area
Grayson County, TX
Vacancy
8.80%
Lease Rate
$8.16 /SF/Yr
Expense Ratio
15.00%
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%
$556,660
Cap Rate 7%
$397,614
Cap Rate 9%
$309,256
Alternative Uses
Best Use
Warehouse
$397.6K
$347.9K – $463.9K
NOI $27,833 @ 7.0% cap · market cap 5.86%
Second Best
Industrial
$327.4K
$286.5K – $382.0K
NOI $22,921 @ 7.0% cap · market cap 4.83%
Theoretical Best
Hotel Hospitality
$2.26M
$1.98M – $2.63M
NOI $158,004 @ 7.0% cap · market cap 33.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14 ft
Clear height
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,454
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 75090, TX
25,002
Population
9,602
Households
2.6
Avg Household Size
35
Median Age
15%
College-Educated
84%
High-School Grad
78.5 sq mi
ZIP Area
318
Density / Sq Mi
$58,586
Median Household Income
$36,230
Median Earnings
$1,111
Median Rent
$163,500
Median Home Value
Market
Vacancy Rate% for Industrial in South region
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?
Flex space - Two separate commercial buildings offer flexible space, office support, overhead doors, fenced yard area, and on-site parking.
Where is this flex space located?
The property is located at 520 S Sam Rayburn Freeway Sherman, TX.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: Two commercial buildings on two separate legal parcels; Approximately 14‑foot ceiling heights and multiple overhead doors; Fenced yard space with asphalt parking
