Highlands Commercial Property with
For Sale
Contact for pricing
217 N Main St, Highlands, TX 77562
Three-property deal: building, parking lot, and vacant lot.
Property Size2,848 SF
Lot Size0.52 Acres
Price / SF$298.46
Days on Market803
Property Features for 217 N Main St
General Information
Standard status
Active
Size
2,848 SF
Class
B
Lot size
0.52 Acres
Property subtype
Land, Mixed Use, Retail
Zoning
NZ
Building Details
Year Built
1957
Listing Agency:
Trinh Nguyen
Listed By:
Thế Trinh Nguyen · License #617251
Source:
Crexi
Added: May 28, 2024
Changed: Aug 8
Last Checked: Aug 8 at 11:53AM
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 Trinh Nguyen
Investment Insights
Based on property information with market context.
This listing includes three properties: a 2,848-square-foot building on a 4,950-square-foot lot, a 7,050-square-foot parking lot, and an adjacent 7,500-square-foot vacant lot, totaling 22,500 square feet. The property features a drive-through lane and is located near a busy Food Town, benefiting from heavy daily traffic and surrounded by flourishing businesses, including restaurants and gas stations. Currently operated as a second-hand store by the owner, the single-tenant property will soon be vacant and is suitable for uses such as a convenience store or restaurant. The property is centrally located in Highlands, offering ample area for utilization and a large lot size suitable for diverse purposes.
Key Highlights
- Expansive 22,500 sqf combined lot size including a 2,848 sqf building, 7,050 sqf parking lot, and 7,500 sqf vacant lot.
- Existing Drive‑Through lane.
- Located near a busy Food Town, benefiting from heavy daily traffic and surrounded by thriving businesses.
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
$41,332
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
4.86%
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%
$826,640
$826.6K
Cap Rate 7%
$590,457
$590.5K
Cap Rate 9%
$459,244
$459.2K
Market Conditions
NOI Build-Up for 2,848 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
$58.4K $20.52/SF
− Vacancy
−$3.3K −$1.17/SF
EGI
$55.1K $19.35/SF
− OpEx
−$13.8K −$4.84/SF
NOI
$41.3K $14.51/SF
Area
Harris County, TX
Vacancy
5.70%
Lease Rate
$20.52 /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%
$826,640
Cap Rate 7%
$590,457
Cap Rate 9%
$459,244
Alternative Uses
Best Use
Specialty Retail
$590.5K
$516.7K – $688.9K
NOI $41,332 @ 7.0% cap · market cap 4.86%
Second Best
Retail
$483.4K
$423.0K – $564.0K
NOI $33,839 @ 7.0% cap · market cap 3.98%
Theoretical Best
Office A
$777.7K
$680.5K – $907.3K
NOI $54,436 @ 7.0% cap · market cap 6.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
141
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77562, TX
11,861
Population
4,184
Households
2.8
Avg Household Size
38
Median Age
12%
College-Educated
81%
High-School Grad
13.5 sq mi
ZIP Area
879
Density / Sq Mi
$63,636
Median Household Income
$39,712
Median Earnings
$1,190
Median Rent
$195,300
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?
Storefront property - Three-property deal: building, parking lot, and vacant lot.
Where is this storefront property located?
The property is located at 217 N Main St Highlands, TX.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Expansive 22,500 sqf combined lot size including a 2,848 sqf building, 7,050 sqf parking lot, and 7,500 sqf vacant lot.; Existing Drive‑Through lane.; Located near a busy Food Town, benefiting from heavy daily traffic and surrounded by thriving businesses.
