Stabilized Retail and Medical
For Sale
Contact for pricing
1824 Parkway Dr, Lubbock, TX 79403
NNN retail and medical center with strong tenant mix.
Property Size19,416 SF
Lot Size3.81 Acres
Price / SF$154.51
Days on Market2134
Property Features for 1824 Parkway Dr
General Information
Standard status
Active
Size
19,416 SF
Class
B
Total Parking Spaces
94
Lot size
3.81 Acres
Property subtype
Retail
Zoning
Retail
Occupancy
86%
Lease Type
NNN
Building Details
Year Built
2009
Buildings
2
Stories
1
Tenancy
Multi
Listing Agency:
KW Commercial Lubbock
(806) 392-0578
Listed By:
Jeremy Steen · License #TX 685530
Source:
Crexi
Added: Oct 29, 2020
Changed: Aug 16
Last Checked: Aug 31 at 5:36PM
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 Lubbock
Investment Insights
Based on property information with market context.
This stabilized retail and medical center, constructed in 2009, is located at 1824 & 1826 Parkway Drive in Lubbock, Texas. The Class B property offers a 6.42% cap rate return. Situated within a designated Federal Opportunity Zone, the property may provide potential tax benefits. The center spans 19,416 square feet on a 3.81-acre lot and features 287 feet of frontage on US Highway 82 (Parkway Drive). The property is anchored by a diverse tenant mix, including national brands such as Pizza Hut and Cricket Wireless, and community services like the Community Health Center of Lubbock, Renal Care, and Health Mart Pharmacy. The property maintains an 86% average occupancy rate. The property is located in an established neighborhood.
Key Highlights
- Stabilized NNN retail and medical center with a secure 6.42% cap rate.
- Located in a designated Federal Opportunity Zone, offering potential tax benefits.
- Excellent visibility and access with 287 feet of frontage on US Highway 82.
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
$187,559
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
6.25%
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%
$3,751,180
$3.8M
Cap Rate 7%
$2,679,414
$2.7M
Cap Rate 9%
$2,083,989
$2.1M
Market Conditions
NOI Build-Up for 19,416 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
$291.2K $15.00/SF
− Vacancy
−$23.3K −$1.20/SF
EGI
$267.9K $13.80/SF
− OpEx
−$80.4K −$4.14/SF
NOI
$187.6K $9.66/SF
Area
Lubbock, TX
Vacancy
8.00%
Lease Rate
$15.00 /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%
$3,751,180
Cap Rate 7%
$2,679,414
Cap Rate 9%
$2,083,989
Alternative Uses
Best Use
Retail
$2.68M
$2.34M – $3.13M
NOI $187,559 @ 7.0% cap · market cap 6.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.89M
$4.28M – $5.71M
NOI $342,638 @ 7.0% cap · market cap 11.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
202
Businesses Nearby
44k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 44%
Shops & Services 39%
Dining 10%
Electronics 7%
United Supermarkets
Groceries
19,662 visits/mo
0.5 miles
Dollar Tree
Shops & Services
8,174 visits/mo
0.1 miles
Dollar General
Shops & Services
5,026 visits/mo
0.1 miles
7-Eleven
Shops & Services
3,354 visits/mo
0.4 miles
Pizza Hut
Dining
2,630 visits/mo
0.2 miles
Demographics for 79403, TX
15,604
Population
6,530
Households
2.4
Avg Household Size
38
Median Age
11%
College-Educated
76%
High-School Grad
131.3 sq mi
ZIP Area
119
Density / Sq Mi
$45,343
Median Household Income
$27,431
Median Earnings
$946
Median Rent
$83,100
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?
Shopping center - NNN retail and medical center with strong tenant mix.
Where is this shopping center located?
The property is located at 1824 Parkway Dr Lubbock, TX.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Stabilized NNN retail and medical center with a secure 6.42% cap rate.; Located in a designated Federal Opportunity Zone, offering potential tax benefits.; Excellent visibility and access with 287 feet of frontage on US Highway 82.
