Prime Shepherd Drive Retail
For Sale
Contact for pricing
3619 S Shepherd Dr, Houston, TX 77098
6,000 SF retail space on highly desired Shepherd Drive.
Property Size6,000 SF
Price / SF$416.67
Days on Market910
Property Features for 3619 S Shepherd Dr
General Information
Standard status
Active
Size
6,000 SF
Property subtype
Land
Building Details
Buildings
1
Stories
1
Listing Agency:
NewQuest Properties
Listed By:
Glenn Dickerson · License #TX
(281) 477-4384
Source:
Crexi
Added: Mar 7, 2024
Changed: Aug 16
Last Checked: Aug 31 at 5:35AM
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 NewQuest Properties
Investment Insights
Based on property information with market context.
Located on Shepherd Drive, this 6,000 SF property currently houses the Rockin’ Robin Music Store and is available for the first time in 40 years. The business and its inventory are also available for purchase. The property's location offers excellent visibility and accessibility, with close proximity to Hwy 59, River Oaks, The Galleria, Highland Village, and Montrose. High-end retail, restaurants, and museums are nearby, making this location an attractive investment opportunity for an owner/user or developer.
Key Highlights
- Highly desirable Shepherd Drive location.
- Excellent visibility and accessibility due to proximity to Hwy 59, River Oaks, The Galleria, Highland Village and Montrose.
- Attractive investment opportunity for owner/user or developer.
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
$81,358
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
3.25%
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%
$1,627,160
$1.6M
Cap Rate 7%
$1,162,257
$1.2M
Cap Rate 9%
$903,978
$904.0K
Market Conditions
NOI Build-Up for 6,000 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
$123.1K $20.52/SF
− Vacancy
−$6.9K −$1.15/SF
EGI
$116.2K $19.37/SF
− OpEx
−$34.9K −$5.81/SF
NOI
$81.4K $13.56/SF
Area
Houston, TX
Vacancy
5.60%
Lease Rate
$20.52 /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%
$1,627,160
Cap Rate 7%
$1,162,257
Cap Rate 9%
$903,978
Alternative Uses
Best Use
Retail
$1.16M
$1.02M – $1.36M
NOI $81,358 @ 7.0% cap · market cap 3.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.54M
$1.35M – $1.80M
NOI $108,000 @ 7.0% cap · market cap 4.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,694
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77098, TX
15,717
Population
10,181
Households
1.5
Avg Household Size
36
Median Age
81%
College-Educated
99%
High-School Grad
1.8 sq mi
ZIP Area
8,732
Density / Sq Mi
$115,867
Median Household Income
$83,401
Median Earnings
$1,854
Median Rent
$777,700
Median Home Value
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Bloom & Box Modern Florist #2 — 2607 Bissonnet St, Houston, TX 77005
- Bloom and Box — 2617 Bissonnet St #103, Houston, TX 77005
- The Tallest Tulip — 2617 Bissonnet St Suite 477, Houston, TX 77005
- Petals to The Heart — 3333 Lake St, Houston, TX 77098
- Truulove flower — 1826 Richmond Ave., Houston, TX 77098
Frequently Asked Questions
What type of property is this?
Storefront property - 6,000 SF retail space on highly desired Shepherd Drive.
Where is this storefront property located?
The property is located at 3619 S Shepherd Dr Houston, TX.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Highly desirable Shepherd Drive location.; Excellent visibility and accessibility due to proximity to Hwy 59, River Oaks, The Galleria, Highland Village and Montrose.; Attractive investment opportunity for owner/user or developer.
