Pasadena Commercial Property on Spencer
For Sale
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5213 Spencer Hwy, Pasadena, TX 77505
Commercial property on Spencer Highway suitable for various business uses.
Property Size19,936 SF
Price / SF$145.47
Days on Market107
Property Features for 5213 Spencer Hwy
General Information
Standard status
Active
Size
19,936 SF
Property subtype
Retail, Industrial
Building Details
Year Built
1983
Buildings
1
Stories
1
Listing Agency:
Qualified Properties Inc
(713) 947-8023
Listed By:
Herman Williams · License #TX 553992
Source:
Crexi
Added: May 15
Changed: Aug 21
Last Checked: Aug 29 at 10:21AM
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 Qualified Properties Inc
Investment Insights
Based on property information with market context.
Located at 5213 Spencer Highway in Pasadena, Texas, this commercial property offers a location suitable for businesses seeking visibility and accessibility. The property's position along Spencer Highway provides connectivity to surrounding areas. With flexible zoning provisions, the property is suitable for office, industrial, retail, or mixed-use purposes. The property's proximity to commercial districts and services adds value. The property size is 19936 square feet.
Key Highlights
- Prime location on Spencer Highway with high visibility
- Excellent connectivity and accessibility
- Flexible zoning suitable for office, industrial, retail, or mixed‑use
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
$236,122
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
8.14%
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%
$4,722,440
$4.7M
Cap Rate 7%
$3,373,171
$3.4M
Cap Rate 9%
$2,623,578
$2.6M
Market Conditions
NOI Build-Up for 19,936 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
$358.8K $18.00/SF
− Vacancy
−$21.5K −$1.08/SF
EGI
$337.3K $16.92/SF
− OpEx
−$101.2K −$5.08/SF
NOI
$236.1K $11.84/SF
Area
Pasadena, TX
Vacancy
6.00%
Lease Rate
$18.00 /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%
$4,722,440
Cap Rate 7%
$3,373,171
Cap Rate 9%
$2,623,578
Alternative Uses
Best Use
Retail
$3.37M
$2.95M – $3.94M
NOI $236,122 @ 7.0% cap · market cap 8.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.58M
$5.76M – $7.68M
NOI $460,541 @ 7.0% cap · market cap 15.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
570
Businesses Nearby
71k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 78%
Shops & Services 22%
Pluckers Wing Bar
Dining
29,966 visits/mo
0.4 miles
Starbucks
Dining
25,073 visits/mo
0.4 miles
7-Eleven
Shops & Services
9,672 visits/mo
0.4 miles
Shell
Shops & Services
4,695 visits/mo
0.2 miles
Public Storage
Shops & Services
967 visits/mo
0.5 miles
Demographics for 77505, TX
23,584
Population
8,817
Households
2.7
Avg Household Size
38
Median Age
30%
College-Educated
90%
High-School Grad
8.4 sq mi
ZIP Area
2,808
Density / Sq Mi
$94,643
Median Household Income
$52,193
Median Earnings
$1,522
Median Rent
$276,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail property - Commercial property on Spencer Highway suitable for various business uses.
Where is this retail property located?
The property is located at 5213 Spencer Hwy Pasadena, TX.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: Prime location on Spencer Highway with high visibility; Excellent connectivity and accessibility; Flexible zoning suitable for office, industrial, retail, or mixed‑use
