Leased Retail Center Investment
For Sale
$1,000,000
8380 N Fairbanks Rd, Houston, TX 77064
4400SF FAIRBANKS DENTAL STRIP CENTER
Property Size4,400 SF
Lot Size0.36 Acres
Price / SF$227.27
Days on Market602
Property Features for 8380 N Fairbanks Rd
General Information
Standard status
Active
Property type
Individual retail properties, Other retail properties, Shopping centers, Retail properties & Spaces
Size
4,400 SF
Class
C
Total Parking Spaces
13
Elevators
N/A
Lot size
0.36 Acres
Occupancy
100%
Net Operating Income
$71,109
Building Details
Year Built
1981
Buildings
1
Stories
1
Units
3
Listed By:
Daniel Nunez
(832) 516-5619
Added: Jan 9, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This 4,400 square foot retail center is located on N Fairbanks Rd in Houston, Texas. The property is situated less than 3 miles from Sam Houston Tollway and Highway 290, providing excellent accessibility and high visibility. The property features over 124 feet of frontage on a signalized corner, with daily traffic of approximately 34,506 vehicles. Two large curb cuts and a double-sided pylon sign enhance tenant exposure. The center is 100% leased, with a major dental tenant occupying over half the space, ensuring stable income. Situated on a 0.36-acre lot, the property houses three units. The area has over 148,361 residents within a 5-mile radius and an average household income of $98,173.
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
$59,662
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
5.97%
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%
$1,193,240
$1.2M
Cap Rate 7%
$852,314
$852.3K
Cap Rate 9%
$662,911
$662.9K
Market Conditions
NOI Build-Up for 4,400 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
$90.3K $20.52/SF
− Vacancy
−$5.1K −$1.15/SF
EGI
$85.2K $19.37/SF
− OpEx
−$25.6K −$5.81/SF
NOI
$59.7K $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%
$1,193,240
Cap Rate 7%
$852,314
Cap Rate 9%
$662,911
Alternative Uses
Best Use
Retail
$852.3K
$745.8K – $994.4K
NOI $59,662 @ 7.0% cap · market cap 5.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.13M
$990.0K – $1.32M
NOI $79,200 @ 7.0% cap · market cap 7.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
491
Businesses Nearby
Explore this area
Business Placement
Demographics for 77064, TX
48,243
Population
17,358
Households
2.8
Avg Household Size
36
Median Age
29%
College-Educated
82%
High-School Grad
14.7 sq mi
ZIP Area
3,282
Density / Sq Mi
$85,318
Median Household Income
$42,133
Median Earnings
$1,477
Median Rent
$234,600
Median Home Value
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Individual retail property - 4400SF FAIRBANKS DENTAL STRIP CENTER
Where is this individual retail property located?
The property is located at 8380 N Fairbanks Rd Houston, TX.
What is the asking price?
The asking price for this property is $1,000,000.
