General Commercial Office
For Sale
Contact for pricing
903 W Dallas Ave, McAllen, TX 78501
Office building in a C-3 general commercial zone with an existing 1,849 SF structure and additional 128 SF.
Property Size1,849 SF
Price / SF$216.33
Days on Market126
Property Features for 903 W Dallas Ave
General Information
Standard status
Active
Size
1,849 SF
Property subtype
OFFICE
Listing Agency:
SVN | Hanna Solutions CRE
(956) 322-4001
Listed By:
Mark Hanna
(956) 821-8001
Source:
Moodyscre
Added: May 5
Changed: Aug 14
Last Checked: Jul 23 at 12:27AM
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 SVN | Hanna Solutions CRE
Investment Insights
Based on property information with market context.
This for-sale office property includes an existing 1,849 SF building plus an additional 128 SF structure. The property is positioned to support adaptive reuse or redevelopment, with current improvements in place for a range of professional office configurations.
The site sits just off 10th Street on a premier retail and business corridor. It is surrounded by established commercial and residential uses and is described as a central McAllen location with strong accessibility.
Zoned General Commercial (C-3), the property can be considered for office uses such as law offices, CPA or financial services, and other professional service firms, subject to applicable regulations.
The site sits just off 10th Street on a premier retail and business corridor. It is surrounded by established commercial and residential uses and is described as a central McAllen location with strong accessibility.
Zoned General Commercial (C-3), the property can be considered for office uses such as law offices, CPA or financial services, and other professional service firms, subject to applicable regulations.
Key Highlights
- C‑3 general commercial zoning—suited for law offices, CPA/financial services, and other professional service firms
- Central McAllen lot just off 10th Street on a premier retail & business corridor
- 13,891 SF lot (0.32 acres) with an existing 1,849 SF building plus an additional 128 SF structure
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
$24,753
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
6.19%
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%
$495,060
$495.1K
Cap Rate 7%
$353,614
$353.6K
Cap Rate 9%
$275,033
$275.0K
Market Conditions
NOI Build-Up for 1,849 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
$38.8K $21.00/SF
− Vacancy
−$5.8K −$3.15/SF
EGI
$33.0K $17.85/SF
− OpEx
−$8.3K −$4.46/SF
NOI
$24.8K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /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%
$495,060
Cap Rate 7%
$353,614
Cap Rate 9%
$275,033
Alternative Uses
Best Use
Office B
$353.6K
$309.4K – $412.6K
NOI $24,753 @ 7.0% cap · market cap 6.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$502.1K
$439.3K – $585.8K
NOI $35,146 @ 7.0% cap · market cap 8.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
870
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building in a C-3 general commercial zone with an existing 1,849 SF structure and additional 128 SF.
Where is this office building located?
The property is located at 903 W Dallas Ave McAllen, TX.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: C‑3 general commercial zoning—suited for law offices, CPA/financial services, and other professional service firms; Central McAllen lot just off 10th Street on a premier retail & business corridor; 13,891 SF lot (0.32 acres) with an existing 1,849 SF building plus an additional 128 SF structure
