Highway-Fronting Commercial
New
For Sale
$2,916,777
8535 Hwy 158, Midland, TX 79707
Commercial Sale, Midland, TX
Property Size9,920 SF
Lot Size5.58 Acres
Price / SF$294.03
Days on Market3
Property Features for 8535 Hwy 158
General Information
Property type
Commercial Sale
Property subtype
Other
Standard status
Active
Size
9,920 SF
Lot size
5.58 Acres
Taxes and HOA fees
Tax Description
Acres: 2.850, NW/4, SEC: 27, BLK: 40-T1S, 2.730, NW/4, SEC: 27, BLK: 40-T1S
Tax Annual Amount
6905
Legal Description
Acres: 2.850, NW/4, SEC: 27, BLK: 40-T1S, 2.730, NW/4, SEC: 27, BLK: 40-T1S
Building Details
Year built
2005
Listing Agency:
Caleb Matott Land & Ranch Sales
(432) 349-3330
Listed By:
Caleb Matott · License #TREC 0453625
(432) 219-2220
Added: Sep 4
Last Checked: Sep 6 at 1:06AM
MLS# 50098069
Copyright © 2026 Permian Basin Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This commercial land tract encompasses 5.58 acres along Hwy 158 in Midland, Texas. The property record identifies 9,920 square feet of property size and a 2005 year built. Its highway position provides direct access to a transportation route and supports consideration of convenience, retail, or industrial uses described for the site.
The property is located at 8535 Hwy 158, near Midland’s oil field activity and transportation routes. The site’s scale may accommodate equipment or future expansion needs associated with the stated commercial uses.
The property is located at 8535 Hwy 158, near Midland’s oil field activity and transportation routes. The site’s scale may accommodate equipment or future expansion needs associated with the stated commercial uses.
Key Highlights
- 5.58‑acre commercial land tract
- Located directly on Hwy 158 at 8535 Hwy 158, Midland, TX 79707
- 9,920 square feet of recorded property size
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
$108,520
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
3.72%
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%
$2,170,400
$2.2M
Cap Rate 7%
$1,550,286
$1.6M
Cap Rate 9%
$1,205,778
$1.2M
Market Conditions
NOI Build-Up for 9,920 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
$154.8K $15.60/SF
− Vacancy
−$10.1K −$1.01/SF
EGI
$144.7K $14.59/SF
− OpEx
−$36.2K −$3.65/SF
NOI
$108.5K $10.94/SF
Area
Midland, TX
Vacancy
6.50%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
25.00%
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%
$2,170,400
Cap Rate 7%
$1,550,286
Cap Rate 9%
$1,205,778
Alternative Uses
Best Use
Specialty Retail
$1.55M
$1.36M – $1.81M
NOI $108,520 @ 7.0% cap · market cap 3.72%
Second Best
Retail
$1.38M
$1.21M – $1.61M
NOI $96,869 @ 7.0% cap · market cap 3.32%
Theoretical Best
Office A
$2.34M
$2.05M – $2.73M
NOI $163,799 @ 7.0% cap · market cap 5.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
13
Businesses Nearby
Explore this area
Business Placement
Demographics for 79707, TX
37,632
Population
16,654
Households
2.3
Avg Household Size
35
Median Age
41%
College-Educated
91%
High-School Grad
71.0 sq mi
ZIP Area
530
Density / Sq Mi
$99,979
Median Household Income
$58,351
Median Earnings
$1,383
Median Rent
$382,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Highway-fronting commercial land suited to convenience, retail, or industrial operations requiring room for equipment or expansion.
Where is this commercial land located?
The property is located at 8535 Hwy 158 Midland, TX.
What is the asking price?
The asking price for this property is $2,916,777.
What are key features of this property?
This property features: 5.58‑acre commercial land tract; Located directly on Hwy 158 at 8535 Hwy 158, Midland, TX 79707; 9,920 square feet of recorded property size
