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5206 Airline Drive, Houston, TX 77022
The center combines occupied storefronts with additional space currently available for lease.
Property Size17,190 SF
Lot Size1.53 Acres
Price / SF$203.61
Days on Market5
Property Features for 5206 Airline Drive
General Information
Standard status
Active
Size
17,190 SF
Lot size
1.53 Acres
Property subtype
Retail
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Asking Price
$3,500,000
Building Details
Tenancy
Multi
Listing Agency:
KW Commercial Texas
Listed By:
Patricia Brand · License #640952
(832) 613-7860
Source:
Crexi
Added: Sep 23
Changed: Sep 26
Last Checked: Sep 26 at 2:31PM
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 KW Commercial Texas
Investment Insights
Based on property information with market context.
At 5206 Airline Drive, this Houston shopping center contains 17,190 square feet on approximately 1.53 acres. Its multi-tenant layout includes existing occupants as well as space available for lease. The property also has surface parking and multiple access points.
The center fronts Airline Drive and is near Interstate 45. Its location is in Houston’s Near North submarket.
The center fronts Airline Drive and is near Interstate 45. Its location is in Houston’s Near North submarket.
Key Highlights
- 17,190‑square‑foot retail center on approximately 1.53 acres
- Multi‑tenant configuration with existing occupants and available space
- Frontage on Airline 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
$233,090
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
6.66%
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%
$4,661,800
$4.7M
Cap Rate 7%
$3,329,857
$3.3M
Cap Rate 9%
$2,589,889
$2.6M
Market Conditions
NOI Build-Up for 17,190 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
$352.7K $20.52/SF
− Vacancy
−$19.8K −$1.15/SF
EGI
$333.0K $19.37/SF
− OpEx
−$99.9K −$5.81/SF
NOI
$233.1K $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%
$4,661,800
Cap Rate 7%
$3,329,857
Cap Rate 9%
$2,589,889
Alternative Uses
Best Use
Retail
$3.33M
$2.91M – $3.88M
NOI $233,090 @ 7.0% cap · market cap 6.66%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.42M
$3.87M – $5.16M
NOI $309,420 @ 7.0% cap · market cap 8.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,000
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 77022, TX
28,748
Population
10,717
Households
2.7
Avg Household Size
35
Median Age
13%
College-Educated
63%
High-School Grad
5.8 sq mi
ZIP Area
4,957
Density / Sq Mi
$48,386
Median Household Income
$28,877
Median Earnings
$1,047
Median Rent
$197,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Houston, TX
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Frequently Asked Questions
What type of property is this?
Shopping center - The center combines occupied storefronts with additional space currently available for lease.
Where is this shopping center located?
The property is located at 5206 Airline Drive Houston, TX.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 17,190‑square‑foot retail center on approximately 1.53 acres; Multi‑tenant configuration with existing occupants and available space; Frontage on Airline Drive
