Industrial Flex Space Investment
For Sale
Contact for pricing
6912 Calhoun Rd, Houston, TX 77021
High-return industrial flex space in a thriving Houston location.
Property Size14,596 SF
Lot Size0.50 Acres
Price / SF$76.73
Days on Market702
Property Features for 6912 Calhoun Rd
General Information
Standard status
Active
Size
14,596 SF
Class
B
Lot size
0.50 Acres
Property subtype
Industrial, Mixed Use, Special Purpose
Occupancy
100%
Lease Type
Gross
Investment Type
Stabilized
Net Operating Income
$98,966
Building Details
Year Built
1962
Year Renovated
2023
Buildings
1
Stories
1
Units
4
Tenancy
Multi
Listing Agency:
Trinh Nguyen
Listed By:
Thế Trinh Nguyen · License #617251
Source:
Crexi
Added: Sep 21, 2024
Changed: Aug 20
Last Checked: Aug 21 at 11:03PM
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 Trinh Nguyen
Investment Insights
Based on property information with market context.
This industrial flex space, completed in 2023, is located at 6912 Calhoun Rd, Houston, TX 77021. The property offers a unique investment opportunity with a strong 8.5% cap rate. The newly constructed facility features 14,596 square feet of versatile space on a 21,825 square foot lot. The building’s modern design includes a steel structure with a half brick and half steel exterior. The flexible layout supports various uses, including showroom and light industrial applications. The property is currently fully occupied by four stable tenants and offers room for rental increases due to below-market rates. Per Seller, each unit square footage is -Unit 1: 3,600sqft -Unit 2: 3,600sqft -Unit 3: 4,500sqft -Unit 4: 3,600sqft. It is located in a rapidly developing area with new residential constructions nearby.
Key Highlights
- Strong 8.5% Cap Rate: Offers a high return on investment.
- Newly Constructed Facility (2023): Modern design and construction.
- Fully Occupied by Four Stable Tenants: Provides immediate income.
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
$82,300
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
7.35%
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%
$1,646,000
$1.6M
Cap Rate 7%
$1,175,714
$1.2M
Cap Rate 9%
$914,444
$914.4K
Market Conditions
NOI Build-Up for 14,596 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
$131.4K $9.00/SF
− Vacancy
−$13.8K −$0.95/SF
EGI
$117.6K $8.06/SF
− OpEx
−$35.3K −$2.42/SF
NOI
$82.3K $5.64/SF
Area
Houston, TX
Vacancy
10.50%
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%
$1,646,000
Cap Rate 7%
$1,175,714
Cap Rate 9%
$914,444
Alternative Uses
Best Use
Flex RnD
$2.17M
$1.90M – $2.53M
NOI $151,988 @ 7.0% cap · market cap 13.57%
Second Best
Industrial
$1.18M
$1.03M – $1.37M
NOI $82,300 @ 7.0% cap · market cap 7.35%
Theoretical Best
Office A
$3.75M
$3.28M – $4.38M
NOI $262,728 @ 7.0% cap · market cap 23.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
479
Businesses Nearby
Under-served
Demand for This Use
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 Industrial in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - High-return industrial flex space in a thriving Houston location.
Where is this flex space located?
The property is located at 6912 Calhoun Rd Houston, TX.
What is the asking price?
The asking price for this property is $1,120,000.
What are key features of this property?
This property features: Strong 8.5% Cap Rate: Offers a high return on investment.; Newly Constructed Facility (2023): Modern design and construction.; Fully Occupied by Four Stable Tenants: Provides immediate income.
