Three-Building Flex
For Sale
$1,500,000
Hondo, TX 78861, Hondo, TX 78861
Commercial Sale, Hondo, TX
Property Size23,050 SF
Lot Size4.00 Acres
Price / SF$65.08
Days on Market340
Property Features
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Light Industrial
Security features
Security System
Lot features
Corner Lot
Elementary school
Hondo
Subdivision
87-Medina County
Standard status
Active
Size
23,050 SF
Lot size
4.00 Acres
Utilities
Utilities
Cable Available
Sewer type
Public Sewer
Heating system
Central, Electric (Heating)
Cooling system
Central Air, Electric
Water source
Public
Building Details
Floors in Building
1
Number of units
1
Flooring type
Tile
Building materials
Metal Siding
Roof type
Metal
Listing Agency:
Val Verde Realty
(830) 703-6454
Listed By:
James McBee · License #0373143
(830) 703-6454
Added: Sep 18, 2025
Changed: Aug 19
Last Checked: Aug 23 at 4:06AM
MLS# 120340
Copyright © 2026 Kerrville Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Three buildings totaling 23,050 SF on a west-side, perimeter-fenced 4-acre tract, positioned across from a golf course and near the airport in fast-growing Medina County. The primary structure is a 14,800 SF warehouse building with a listed YOC range of 1986–2020, including approximately 10,000+/- SF of climate-controlled space (17+/- tons) and loading well access.
Also on-site is a 1,600 SF free-standing office building with a YOC of 2008, plus a 6,650 SF open-front equipment building with a YOC of 2022. The property includes a central paved yard and a keypad gated entry, with two shipping containers with electricity. The vacant portion of the tract is described as well-suited to expansion.
Infrastructure includes public water and public sewer, with cable available. Construction is metal siding with a metal roof.
Also on-site is a 1,600 SF free-standing office building with a YOC of 2008, plus a 6,650 SF open-front equipment building with a YOC of 2022. The property includes a central paved yard and a keypad gated entry, with two shipping containers with electricity. The vacant portion of the tract is described as well-suited to expansion.
Infrastructure includes public water and public sewer, with cable available. Construction is metal siding with a metal roof.
Key Highlights
- Light Industrial zoning on a 4‑acre perimeter‑fenced tract with central paved yard
- 14,800 SF warehouse (YOC 1986–2020) with 10,000+/- SF climate‑controlled space and loading well access
- 1,600 SF free‑standing office building with YOC 2008
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
$137,954
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
9.20%
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%
$2,759,080
$2.8M
Cap Rate 7%
$1,970,771
$2.0M
Cap Rate 9%
$1,532,822
$1.5M
Market Conditions
NOI Build-Up for 23,050 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
$207.5K $9.00/SF
− Vacancy
−$10.4K −$0.45/SF
EGI
$197.1K $8.55/SF
− OpEx
−$59.1K −$2.56/SF
NOI
$138.0K $5.98/SF
Area
Medina County, TX
Vacancy
5.00%
Lease Rate
$9.00 /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%
$2,759,080
Cap Rate 7%
$1,970,771
Cap Rate 9%
$1,532,822
Alternative Uses
Best Use
Flex RnD
$3.47M
$3.03M – $4.05M
NOI $242,717 @ 7.0% cap · market cap 16.18%
Second Best
Warehouse
$2.39M
$2.09M – $2.79M
NOI $167,516 @ 7.0% cap · market cap 11.17%
Theoretical Best
Office A
$5.88M
$5.14M – $6.86M
NOI $411,576 @ 7.0% cap · market cap 27.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
461
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78861, TX
13,298
Population
5,163
Households
2.6
Avg Household Size
39
Median Age
17%
College-Educated
82%
High-School Grad
490.7 sq mi
ZIP Area
27
Density / Sq Mi
$64,491
Median Household Income
$39,711
Median Earnings
$1,131
Median Rent
$210,100
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Light industrial flex property on a perimeter-fenced 4-acre tract with central paved yard and climate-controlled warehouse space.
Where is this flex space located?
The property is located at Hondo, TX.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Light Industrial zoning on a 4‑acre perimeter‑fenced tract with central paved yard; 14,800 SF warehouse (YOC 1986–2020) with 10,000+/- SF climate‑controlled space and loading well access; 1,600 SF free‑standing office building with YOC 2008
