Clear-Span Flex Industrial
For Sale
$990,000
5740 Canyon Drive, Amarillo, TX 79109
Includes showroom, reception, offices, and bathrooms equipped with showers.
Property Size13,300 SF
Days on Market195
Property Features for 5740 Canyon Drive
General Information
Standard status
Active
Size
13,300 SF
Property subtype
Industrial
Building Details
Building Size
13,300 SF
Year Built
1960
Listing Agency:
Gaut Whittenburg Emerson Commercial Real Estate
(806) 584-7365
Listed By:
Miles Bonifield · License ##594133
(806) 584-7365
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 3:23PM
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 Gaut Whittenburg Emerson Commercial Real Estate
Investment Insights
Based on property information with market context.
This flex industrial property combines clear-span warehouse space with front-of-house and administrative areas. The layout includes a reception area, showroom, offices, and large bathrooms with showers. Warehouse clearance reaches 13' along the sidewalls and 16' at the center, with one overhead door measuring 12' H x 9' W. Four heaters are included.
The property is located at 5740 Canyon Drive in Amarillo, immediately north of Hillside. Constructed in 1960, the building offers a combination of warehouse functionality and customer-facing space for an industrial operation.
The property is located at 5740 Canyon Drive in Amarillo, immediately north of Hillside. Constructed in 1960, the building offers a combination of warehouse functionality and customer-facing space for an industrial operation.
Key Highlights
- Clear‑span warehouse with 13' sidewalls and 16' center clearance
- One overhead door measuring 12' H x 9' W
- Reception area, showroom, and offices included
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
$80,019
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
8.08%
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%
$1,600,380
$1.6M
Cap Rate 7%
$1,143,129
$1.1M
Cap Rate 9%
$889,100
$889.1K
Market Conditions
NOI Build-Up for 13,300 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
$119.7K $9.00/SF
− Vacancy
−$5.4K −$0.41/SF
EGI
$114.3K $8.59/SF
− OpEx
−$34.3K −$2.58/SF
NOI
$80.0K $6.02/SF
Area
Amarillo, TX
Vacancy
4.50%
Lease Rate
$9.00 /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%
$1,600,380
Cap Rate 7%
$1,143,129
Cap Rate 9%
$889,100
Alternative Uses
Best Use
Office B
$2.18M
$1.91M – $2.54M
NOI $152,618 @ 7.0% cap · market cap 15.42%
Second Best
Warehouse
$1.49M
$1.30M – $1.74M
NOI $104,187 @ 7.0% cap · market cap 10.52%
Theoretical Best
Office A
$2.97M
$2.60M – $3.46M
NOI $207,863 @ 7.0% cap · market cap 21.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
597
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79109, TX
42,509
Population
20,308
Households
2.1
Avg Household Size
39
Median Age
33%
College-Educated
93%
High-School Grad
10.3 sq mi
ZIP Area
4,127
Density / Sq Mi
$68,579
Median Household Income
$41,410
Median Earnings
$945
Median Rent
$217,600
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 - Includes showroom, reception, offices, and bathrooms equipped with showers.
Where is this flex space located?
The property is located at 5740 Canyon Drive Amarillo, TX.
What is the asking price?
The asking price for this property is $990,000.
What are key features of this property?
This property features: Clear‑span warehouse with 13' sidewalls and 16' center clearance; One overhead door measuring 12' H x 9' W; Reception area, showroom, and offices included
