Grocery Anchored Retail Center For
For Sale
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5700 S Gessner Rd, Houston, TX
Grocery anchored retail center with below market rents.
Property Size80,527 SF
Lot Size5.78 Acres
Price / SF$158.33
Days on Market282
Property Features for 5700 S Gessner Rd
General Information
Standard status
Active
Size
80,527 SF
Lot size
5.78 Acres
Property subtype
RETAIL
Listing Agency:
Hunington Properties Inc.
(713) 623-6944
Listed By:
Sandy Aron · License #531445
(713) 623-6944
Source:
Moodyscre
Added: Nov 23, 2025
Changed: Aug 12
Last Checked: Aug 31 at 2:16AM
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 Hunington Properties Inc.
Investment Insights
Based on property information with market context.
This retail center is anchored by a grocery store with a long-term lease. The property benefits from a high-traffic, signalized intersection. A new roof has been installed on the retail center, excluding the anchor tenant and pad site. The property features below-market rents. The property size is 80,527 square feet.
Key Highlights
- Grocery anchored center with long term lease
- High traffic signalized intersection
- Below market rents
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
$1,091,915
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
8.56%
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%
$21,838,300
$21.8M
Cap Rate 7%
$15,598,786
$15.6M
Cap Rate 9%
$12,132,389
$12.1M
Market Conditions
NOI Build-Up for 80,527 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
$1.65M $20.52/SF
− Vacancy
−$92.5K −$1.15/SF
EGI
$1.56M $19.37/SF
− OpEx
−$468.0K −$5.81/SF
NOI
$1.09M $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%
$21,838,300
Cap Rate 7%
$15,598,786
Cap Rate 9%
$12,132,389
Alternative Uses
Best Use
Specialty Retail
$17.70M
$15.49M – $20.66M
NOI $1,239,311 @ 7.0% cap · market cap 9.72%
Second Best
Retail
$15.60M
$13.65M – $18.20M
NOI $1,091,915 @ 7.0% cap · market cap 8.56%
Theoretical Best
Office A
$20.71M
$18.12M – $24.16M
NOI $1,449,486 @ 7.0% cap · market cap 11.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,562
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Century Square 世纪廣場 — 6515 Corporate Dr, Houston, TX 77036
- Yun-Lu Center — 9630 Clarewood Dr, Houston, TX 77036
- Town Park Plaza — 6000 S Gessner Rd, Houston, TX 77036
- Good Luck Square 好運廣塲 — 5880 Ranchester Dr, Houston, TX 77036
- Harwin at Ranchester Center — 5757 Ranchester Dr, Houston, TX 77036
Frequently Asked Questions
What type of property is this?
Shopping center - Grocery anchored retail center with below market rents.
Where is this shopping center located?
The property is located at 5700 S Gessner Rd Houston, TX.
What is the asking price?
The asking price for this property is $12,750,000.
What are key features of this property?
This property features: Grocery anchored center with long term lease; High traffic signalized intersection; Below market rents
