Downtown Houston Retail
For Sale
Contact for pricing
Pending
909 Franklin St, Houston, TX 77002
Retail condominium in Downtown Houston with established restaurant tenant.
Property Size3,865 SF
Days on Market196
Property Features for 909 Franklin St
General Information
Standard status
Pending
Size
3,865 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Building Details
Tenancy
Single
Listing Agency:
Marcus & Millichap - Houston
(713) 452-4266
Listed By:
Watt Harrison · License #TX 621361
Source:
Crexi
Added: Jan 29
Changed: Aug 8
Last Checked: Aug 8 at 6:33AM
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 Marcus & Millichap - Houston
Investment Insights
Based on property information with market context.
This 3,865 square foot retail condominium is located in Downtown Houston, specifically within the Bayou Lofts Condominium building at the corner of Franklin Street and Main Street. Originally constructed as an office building between 1910 and 1920, the building was converted to condominiums in 1997. The property is currently occupied by La Calle, an Authentic Mexican Street Taco restaurant that opened its first location here and expanded into the adjacent space. The restaurant benefits from its Downtown location, which draws significant traffic. The area has a high daytime population due to numerous large office buildings, with over 184,600 people within a one-mile radius. The property's location on the Metro rail line provides convenient ground transportation to various destinations. The Harris County courthouses are located just two blocks away, and Minute Maid Park, Toyota Center, and BBVA Stadium generate nighttime traffic. The average household income within one mile exceeds $106,000.
Key Highlights
- High daytime population (over 184,600 within one mile) drives traffic to the tenant.
- Located in Downtown Houston at the corner of Franklin Street and Main Street.
- Tenant (La Calle) is an established and successful Authentic Mexican Street Taco restaurant.
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
$59,482
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
4.48%
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%
$1,189,640
$1.2M
Cap Rate 7%
$849,743
$849.7K
Cap Rate 9%
$660,911
$660.9K
Market Conditions
NOI Build-Up for 3,865 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
$83.5K $21.60/SF
− Vacancy
−$4.2K −$1.08/SF
EGI
$79.3K $20.52/SF
− OpEx
−$19.8K −$5.13/SF
NOI
$59.5K $15.39/SF
Area
Houston, TX
Vacancy
5.00%
Lease Rate
$21.60 /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%
$1,189,640
Cap Rate 7%
$849,743
Cap Rate 9%
$660,911
Alternative Uses
Best Use
Specialty Retail
$849.7K
$743.5K – $991.4K
NOI $59,482 @ 7.0% cap · market cap 4.48%
Second Best
Retail
$748.7K
$655.1K – $873.5K
NOI $52,408 @ 7.0% cap · market cap 3.95%
Theoretical Best
Office A
$993.9K
$869.6K – $1.16M
NOI $69,570 @ 7.0% cap · market cap 5.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
9,220
Businesses Nearby
Explore this area
Business Placement
Demographics for 77002, TX
19,844
Population
8,960
Households
2.2
Avg Household Size
34
Median Age
37%
College-Educated
86%
High-School Grad
2.0 sq mi
ZIP Area
9,922
Density / Sq Mi
$85,436
Median Household Income
$54,755
Median Earnings
$1,860
Median Rent
$286,100
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?
Retail space - Retail condominium in Downtown Houston with established restaurant tenant.
Where is this retail space located?
The property is located at 909 Franklin St Houston, TX.
What is the asking price?
The asking price for this property is $1,327,500.
What are key features of this property?
This property features: High daytime population (over 184,600 within one mile) drives traffic to the tenant.; Located in Downtown Houston at the corner of Franklin Street and Main Street.; Tenant (La Calle) is an established and successful Authentic Mexican Street Taco restaurant.
