Pearland Tranquility Center Investment
For Sale
Contact for pricing
7918 Broadway St, Pearland, TX 77581
Four buildings with diverse tenants and income potential in Pearland.
Property Size39,065 SF
Price / SF$230.26
Days on Market376
Property Features for 7918 Broadway St
General Information
Standard status
Active
Size
39,065 SF
Class
A
Property subtype
Office, Retail
Occupancy
97%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$704,419
Building Details
Year Built
2003
Buildings
4
Stories
1
Tenancy
Multi
Listing Agency:
Ausmus Premier Properties
(832) 563-4157
Listed By:
Faye Ausmus · License #TX 9005067
Source:
Crexi
Added: Aug 1, 2025
Changed: Aug 8
Last Checked: Aug 11 at 6:47AM
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 Ausmus Premier Properties
Investment Insights
Based on property information with market context.
The Tranquility Center in Pearland, Texas, comprises four buildings and a double-sided billboard situated on FM 518. The property generates rental income and is located approximately 20 minutes from the Medical Center and Downtown Houston. The buildings, constructed between 2003 and 2008, feature a total square footage of 39,065 and accommodate a mix of office and retail spaces. The center is currently at a 97% occupancy rate, hosting a range of medical, legal, and other professional tenants, including a long-term learning center. New 5-year leases have been recently added. Additional income potential exists from floored attic space available for lease above the various buildings. The property benefits from stable, long-term tenants on NNN leases, providing a reliable revenue stream. The location on Broadway Street experiences a traffic count of 27,300 cars per day.
Key Highlights
- High Occupancy Rate: Currently at 97%, ensuring immediate rental income.
- Stable Income with Long‑Term Leases: NNN leases with stable, long‑term tenants guarantee a reliable revenue stream.
- Strategic Location: Located on FM 518 in Pearland, 20 minutes from the Medical Center and Downtown Houston, with high traffic count.
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
$437,077
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
4.86%
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%
$8,741,540
$8.7M
Cap Rate 7%
$6,243,957
$6.2M
Cap Rate 9%
$4,856,411
$4.9M
Market Conditions
NOI Build-Up for 39,065 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
$665.7K $17.04/SF
− Vacancy
−$41.3K −$1.06/SF
EGI
$624.4K $15.98/SF
− OpEx
−$187.3K −$4.80/SF
NOI
$437.1K $11.19/SF
Area
Pearland, TX
Vacancy
6.20%
Lease Rate
$17.04 /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%
$8,741,540
Cap Rate 7%
$6,243,957
Cap Rate 9%
$4,856,411
Alternative Uses
Best Use
Retail
$6.24M
$5.46M – $7.28M
NOI $437,077 @ 7.0% cap · market cap 4.86%
Second Best
Healthcare Medical
$6.18M
$5.41M – $7.21M
NOI $432,731 @ 7.0% cap · market cap 4.81%
Theoretical Best
Warehouse
$7.63M
$6.68M – $8.91M
NOI $534,438 @ 7.0% cap · market cap 5.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
474
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77581, TX
49,198
Population
18,285
Households
2.7
Avg Household Size
38
Median Age
36%
College-Educated
94%
High-School Grad
24.6 sq mi
ZIP Area
2,000
Density / Sq Mi
$106,556
Median Household Income
$62,887
Median Earnings
$1,591
Median Rent
$309,100
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Shopping center - Four buildings with diverse tenants and income potential in Pearland.
Where is this shopping center located?
The property is located at 7918 Broadway St Pearland, TX.
What is the asking price?
The asking price for this property is $8,995,000.
What are key features of this property?
This property features: High Occupancy Rate: Currently at 97%, ensuring immediate rental income.; Stable Income with Long‑Term Leases: NNN leases with stable, long‑term tenants guarantee a reliable revenue stream.; Strategic Location: Located on FM 518 in Pearland, 20 minutes from the Medical Center and Downtown Houston, with high traffic count.
