Functional Warehouse in Spring
For Sale
Contact for pricing
8534 Rannie Rd, Houston, TX 77080
9,500 SF warehouse with excellent access and modern construction.
Property Size9,500 SF
Price / SF$65.79
Days on Market174
Property Features for 8534 Rannie Rd
General Information
Standard status
Active
Size
9,500 SF
Property subtype
Industrial
Investment Type
Owner/User
Building Details
Year Built
2007
Buildings
1
Listing Agency:
Alpine Partners
(281) 627-0834
Listed By:
Lucas Fertitta · License #606083
Source:
Crexi
Added: Feb 20
Changed: Aug 8
Last Checked: Aug 12 at 3:02PM
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 Alpine Partners
Investment Insights
Based on property information with market context.
The property features an approximately 9,500 square foot warehouse, built in 2007. According to the seller, the dimensions are 95 feet by 100 feet. The building offers a 16-foot clear height, a 14-foot overhead door, natural gas service, and three separate water meters. It is suitable for automotive and light industrial operations. Located in the Spring Branch submarket, the property provides convenient regional access. It is situated minutes from US-290 (Hempstead Road), Interstate 10, Loop 610, and the Sam Houston Tollway (Beltway 8), facilitating connectivity to Downtown Houston, the Energy Corridor, and major commercial corridors. The surrounding area benefits from strong economic drivers, including the Memorial City district, the Energy Corridor, and major healthcare employers such as Memorial Hermann Health System and HCA Houston Healthcare. These employment centers contribute to a consistent labor base and ongoing demand for industrial and service-related businesses. The property represents an owner-user industrial opportunity with strong access, modern construction, and proximity to major employment hubs.
Key Highlights
- Excellent regional access to US‑290, Interstate 10, Loop 610, and Beltway 8.
- Approximately 9,500 SF warehouse built in 2007.
- 16’ clear height with 14’ overhead door.
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
$53,566
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
8.57%
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%
$1,071,320
$1.1M
Cap Rate 7%
$765,229
$765.2K
Cap Rate 9%
$595,178
$595.2K
Market Conditions
NOI Build-Up for 9,500 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
$85.5K $9.00/SF
− Vacancy
−$9.0K −$0.95/SF
EGI
$76.5K $8.06/SF
− OpEx
−$23.0K −$2.42/SF
NOI
$53.6K $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%
$1,071,320
Cap Rate 7%
$765,229
Cap Rate 9%
$595,178
Alternative Uses
Best Use
Retail
$1.84M
$1.61M – $2.15M
NOI $128,816 @ 7.0% cap · market cap 20.61%
Second Best
Warehouse
$998.9K
$874.0K – $1.17M
NOI $69,923 @ 7.0% cap · market cap 11.19%
Theoretical Best
Office A
$2.44M
$2.14M – $2.85M
NOI $171,000 @ 7.0% cap · market cap 27.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
733
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 77080, TX
45,428
Population
17,394
Households
2.6
Avg Household Size
33
Median Age
27%
College-Educated
68%
High-School Grad
6.4 sq mi
ZIP Area
7,098
Density / Sq Mi
$63,056
Median Household Income
$33,658
Median Earnings
$1,253
Median Rent
$311,600
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?
Warehouse - 9,500 SF warehouse with excellent access and modern construction.
Where is this warehouse located?
The property is located at 8534 Rannie Rd Houston, TX.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Excellent regional access to US‑290, Interstate 10, Loop 610, and Beltway 8.; Approximately 9,500 SF warehouse built in 2007.; 16’ clear height with 14’ overhead door.
