High-Visibility Commercial Building For
For Sale
Contact for pricing
5701 Martin Luther King Blvd, Houston, TX 77021
Freestanding building in high-growth area, ideal for various businesses.
Property Size3,232 SF
Lot Size0.16 Acres
Price / SF$146.97
Days on Market174
Property Features for 5701 Martin Luther King Blvd
General Information
Standard status
Active
Size
3,232 SF
Lot size
0.16 Acres
Property subtype
Mixed Use, Office, Retail, Self Storage
Building Details
Year Built
1972
Buildings
1
Stories
1
Listing Agency:
Kevin Riles Commercial
(281) 403-3700
Listed By:
Kevin Riles · License #TX 0465148
Source:
Crexi
Added: Feb 19
Changed: Aug 8
Last Checked: Aug 12 at 6:54AM
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 Kevin Riles Commercial
Investment Insights
Based on property information with market context.
Located in the OST-South Union area, this commercial property at 5701 Martin Luther King Blvd offers a freestanding building with approximately 3,232 square feet of space on a 0.16-acre lot. The property features 230 feet of frontage, providing high visibility. Situated in a federal Opportunity Zone, it offers potential tax incentives. The location is near the Texas Medical Center, the University of Houston, and Downtown. The surrounding area is undergoing urban revitalization, with new residential developments and infrastructure upgrades. Proximity to I-610 and Hwy 288 facilitates access for commuters and visitors to nearby medical and academic districts. The property is suitable for medical offices, retail, or creative professional suites. It is positioned for immediate impact and long-term growth.
Key Highlights
- Prime location in high‑growth OST‑South Union area undergoing urban revitalization.
- Located in a federal Opportunity Zone, offering significant tax incentives.
- Excellent visibility with 230 feet of frontage on Martin Luther King Blvd.
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
$42,662
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
8.98%
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%
$853,240
$853.2K
Cap Rate 7%
$609,457
$609.5K
Cap Rate 9%
$474,022
$474.0K
Market Conditions
NOI Build-Up for 3,232 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
$77.6K $24.00/SF
− Vacancy
−$9.3K −$2.88/SF
EGI
$68.3K $21.12/SF
− OpEx
−$25.6K −$7.92/SF
NOI
$42.7K $13.20/SF
Area
Houston, TX
Vacancy
12.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$853,240
Cap Rate 7%
$609,457
Cap Rate 9%
$474,022
Alternative Uses
Best Use
Retail
$626.1K
$547.8K – $730.4K
NOI $43,825 @ 7.0% cap · market cap 9.23%
Second Best
Mixed Use
$609.5K
$533.3K – $711.0K
NOI $42,662 @ 7.0% cap · market cap 8.98%
Theoretical Best
Office A
$831.1K
$727.2K – $969.6K
NOI $58,176 @ 7.0% cap · market cap 12.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
968
Businesses Nearby
Explore this area
Business Placement
Demographics for 77021, TX
28,055
Population
12,819
Households
2.2
Avg Household Size
36
Median Age
34%
College-Educated
87%
High-School Grad
6.1 sq mi
ZIP Area
4,599
Density / Sq Mi
$45,034
Median Household Income
$38,041
Median Earnings
$1,193
Median Rent
$203,900
Median Home Value
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Freestanding building in high-growth area, ideal for various businesses.
Where is this mixed-use property located?
The property is located at 5701 Martin Luther King Blvd Houston, 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: Prime location in high‑growth OST‑South Union area undergoing urban revitalization.; Located in a federal Opportunity Zone, offering significant tax incentives.; Excellent visibility with **230 feet of frontage on Martin Luther King Blvd.**
