Flex Warehouse with 10-Ton
For Sale
$2,203,750
5620 FM 1788, Midland, TX 79706
Newly constructed warehouse features a 10-ton crane-ready insulated space with three drive-through bays.
Property Size11,375 SF
Price / SF$193.74
Days on Market291
Property Features for 5620 FM 1788
General Information
Standard status
Active
Size
11,375 SF
Property subtype
Industrial
Taxes and HOA fees
Annual Taxes
$1.00
Amenities
3
City Road, Paved Road.
Building Details
Year Built
2025
Stories
1
Listing Agency:
NRG Realty Group, LLC
(432) 432-7976
Listed By:
Amy Brasher Barnett · License #514276
(432) 352-6714
Source:
Xome
Added: Nov 19, 2025
Changed: Sep 2
Last Checked: Sep 5 at 5:39AM
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 NRG Realty Group, LLC
Investment Insights
Based on property information with market context.
Newly constructed 10,750 SF flex/warehouse building on 4.769 acres, combining office and warehouse improvements. The ground-floor office totals 2,000 SF and includes eight private offices, a large conference room, two bathrooms, a kitchen/breakroom, and a storage office. The second-floor space also totals 2,000 SF and includes an executive office and an apartment.
The fully insulated 5,500 SF warehouse is 10-ton crane ready and includes three drive-through bays with six 14'x16' overhead doors. Additional warehouse support space includes an extra office and a bathroom with a shower. At the rear of the building, there is a 1,250 SF covered drive-thru wash-bay.
Additional property features include fiber internet access, 3-phase power, paved asphalt parking, and 20 GPM water capacity.
The fully insulated 5,500 SF warehouse is 10-ton crane ready and includes three drive-through bays with six 14'x16' overhead doors. Additional warehouse support space includes an extra office and a bathroom with a shower. At the rear of the building, there is a 1,250 SF covered drive-thru wash-bay.
Additional property features include fiber internet access, 3-phase power, paved asphalt parking, and 20 GPM water capacity.
Key Highlights
- Newly constructed 10,750 SF building on 4.769 acres (Year built: 2025) with insulated warehouse and office space
- Fully insulated 5,500 SF warehouse is 10‑ton crane ready with 3 drive‑through bays and (6) 14'x16' OH doors
- Warehouse includes an additional office and a bathroom with a shower
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
$137,592
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
6.24%
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%
$2,751,840
$2.8M
Cap Rate 7%
$1,965,600
$2.0M
Cap Rate 9%
$1,528,800
$1.5M
Market Conditions
NOI Build-Up for 11,375 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
$218.4K $19.20/SF
− Vacancy
−$34.9K −$3.07/SF
EGI
$183.5K $16.13/SF
− OpEx
−$45.9K −$4.03/SF
NOI
$137.6K $12.10/SF
Area
Midland, TX
Vacancy
16.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
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%
$2,751,840
Cap Rate 7%
$1,965,600
Cap Rate 9%
$1,528,800
Alternative Uses
Best Use
Office B
$1.97M
$1.72M – $2.29M
NOI $137,592 @ 7.0% cap · market cap 6.24%
Second Best
Warehouse
$1.77M
$1.55M – $2.06M
NOI $123,897 @ 7.0% cap · market cap 5.62%
Theoretical Best
Office A
$2.68M
$2.35M – $3.13M
NOI $187,824 @ 7.0% cap · market cap 8.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
79
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79706, TX
31,805
Population
12,368
Households
2.6
Avg Household Size
32
Median Age
23%
College-Educated
87%
High-School Grad
689.5 sq mi
ZIP Area
46
Density / Sq Mi
$110,988
Median Household Income
$58,023
Median Earnings
$897
Median Rent
$280,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Newly constructed warehouse features a 10-ton crane-ready insulated space with three drive-through bays.
Where is this flex space located?
The property is located at 5620 FM 1788 Midland, TX.
What is the asking price?
The asking price for this property is $2,203,750.
What are key features of this property?
This property features: Newly constructed 10,750 SF building on 4.769 acres (Year built: 2025) with insulated warehouse and office space; Fully insulated 5,500 SF warehouse is 10‑ton crane ready with 3 drive‑through bays and (6) 14'x16' OH doors; Warehouse includes an additional office and a bathroom with a shower
