Freestanding Commercial Building on
For Sale
Contact for pricing
8425 Jensen Dr, Houston, TX 77093
Freestanding commercial building on 0.2984 Acres in North Houston.
Property Size3,462 SF
Lot Size0.30 Acres
Price / SF$174.75
Days on Market188
Property Features for 8425 Jensen Dr
General Information
Standard status
Active
Size
3,462 SF
Class
C
Lot size
0.30 Acres
Property subtype
Retail
Investment Type
Owner/User
Building Details
Tenancy
Single
Listing Agency:
KW Commercial Texas
(713) 461-9393
Listed By:
Angelica Riveros · License #706061
Source:
Crexi
Added: Feb 6
Changed: Aug 8
Last Checked: Aug 11 at 8:03PM
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 KW Commercial Texas
Investment Insights
Based on property information with market context.
This freestanding commercial building is situated on a 0.2984-acre lot along Jensen Drive in North Houston. The property includes approximately 3,462 square feet of building area, offering a flexible layout suitable for a variety of commercial or light industrial uses. The oversized lot provides ample parking, outdoor storage, or yard space. It is suited for owner-users such as contractors, auto-related businesses, distribution, and service companies, or for investors seeking a value-add asset. The site offers street exposure, easy access to major thoroughfares, and proximity to I-610, I-69, and Downtown Houston. This property presents an opportunity for an owner-operator looking to establish a presence in a high-demand infill location, or for an investor seeking a standalone commercial asset with future upside.
Key Highlights
- Freestanding commercial building with 3,462 SF on a 0.2984‑acre lot.
- Oversized lot provides ample parking, outdoor storage, or yard space.**
- Flexible layout suitable for various commercial or light industrial uses.
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
$46,943
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
7.76%
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%
$938,860
$938.9K
Cap Rate 7%
$670,614
$670.6K
Cap Rate 9%
$521,589
$521.6K
Market Conditions
NOI Build-Up for 3,462 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
$71.0K $20.52/SF
− Vacancy
−$4.0K −$1.15/SF
EGI
$67.1K $19.37/SF
− OpEx
−$20.1K −$5.81/SF
NOI
$46.9K $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%
$938,860
Cap Rate 7%
$670,614
Cap Rate 9%
$521,589
Alternative Uses
Best Use
Retail
$670.6K
$586.8K – $782.4K
NOI $46,943 @ 7.0% cap · market cap 7.76%
Second Best
Flex RnD
$515.0K
$450.6K – $600.8K
NOI $36,050 @ 7.0% cap · market cap 5.96%
Theoretical Best
Office A
$890.2K
$779.0K – $1.04M
NOI $62,316 @ 7.0% cap · market cap 10.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
512
Businesses Nearby
Explore this area
Business Placement
Demographics for 77093, TX
47,736
Population
14,671
Households
3.3
Avg Household Size
31
Median Age
5%
College-Educated
51%
High-School Grad
12.0 sq mi
ZIP Area
3,978
Density / Sq Mi
$41,958
Median Household Income
$28,493
Median Earnings
$1,102
Median Rent
$122,400
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?
Retail space - Freestanding commercial building on 0.2984 Acres in North Houston.
Where is this retail space located?
The property is located at 8425 Jensen Dr Houston, TX.
What is the asking price?
The asking price for this property is $605,000.
What are key features of this property?
This property features: Freestanding commercial building with 3,462 SF on a 0.2984‑acre lot.; Oversized lot provides ample parking, outdoor storage, or yard space.**; Flexible layout suitable for various commercial or light industrial uses.
