Mixed-Use Property with Highway
New
For Sale
$4,160,000
Tract 1 E I-20, Midland, TX 79706
Versatile property combines a conditioned office component with garage, shop, storage, and covered outdoor areas.
Property Size17,805 SF
Price / SF$233.64
Days on Market3
Property Features for Tract 1 E I-20
General Information
Standard status
Active
Size
17,805 SF
Building Details
Year Built
2006
Listing Agency:
The Real Estate Ranch LLC
(512) 970-1610
Listed By:
Thomas Johnston · License #542176
Source:
Hauspg
Added: Aug 6
Changed: Aug 7
Last Checked: Aug 7 at 2:17AM
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 The Real Estate Ranch LLC
Investment Insights
Based on property information with market context.
This mixed-use property includes a 17,805-square-foot building constructed in 2006. Approximately 12,000 square feet is equipped with heat and air conditioning, while the balance provides a carbarn, garage, shop, porches, and awnings. The property also includes a home/office with finished interiors, appliances, and fixtures, along with a 1,500-square-foot solid concrete-cased safe room.
Tract 1 encompasses 18 acres within a 43.5-acre tract and offers 900 feet of frontage along I-20. The site overlooks a two-thirds-acre lake, adding a notable natural feature to the commercial property. The address is Tract 1 E I-20, Midland, TX 79706.
Tract 1 encompasses 18 acres within a 43.5-acre tract and offers 900 feet of frontage along I-20. The site overlooks a two-thirds-acre lake, adding a notable natural feature to the commercial property. The address is Tract 1 E I-20, Midland, TX 79706.
Key Highlights
- 18 acres within a 43.5‑acre tract
- 900 feet of I‑20 frontage
- 17,805‑square‑foot building constructed in 2006
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
$215,369
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
5.18%
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%
$4,307,380
$4.3M
Cap Rate 7%
$3,076,700
$3.1M
Cap Rate 9%
$2,392,989
$2.4M
Market Conditions
NOI Build-Up for 17,805 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
$341.9K $19.20/SF
− Vacancy
−$54.7K −$3.07/SF
EGI
$287.2K $16.13/SF
− OpEx
−$71.8K −$4.03/SF
NOI
$215.4K $12.10/SF
Area
Midland, TX
Vacancy
16.00%
Lease Rate
$19.20 /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%
$4,307,380
Cap Rate 7%
$3,076,700
Cap Rate 9%
$2,392,989
Alternative Uses
Best Use
Office B
$3.08M
$2.69M – $3.59M
NOI $215,369 @ 7.0% cap · market cap 5.18%
Second Best
Mixed Use
$3.04M
$2.66M – $3.54M
NOI $212,658 @ 7.0% cap · market cap 5.11%
Theoretical Best
Office A
$4.20M
$3.67M – $4.90M
NOI $293,996 @ 7.0% cap · market cap 7.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,246
Businesses Nearby
Explore this area
Business Placement
Demographics for 79706, TX
31,805
Population
12,368
Households
2.6
Avg Household Size
32
Median Age
23%
College-Educated
87%
High-School Grad
689.5 sq mi
ZIP Area
46
Density / Sq Mi
$110,988
Median Household Income
$58,023
Median Earnings
$897
Median Rent
$280,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Versatile property combines a conditioned office component with garage, shop, storage, and covered outdoor areas.
Where is this mixed-use property located?
The property is located at Tract 1 E I-20 Midland, TX.
What is the asking price?
The asking price for this property is $4,160,000.
What are key features of this property?
This property features: 18 acres within a 43.5‑acre tract; 900 feet of I‑20 frontage; 17,805‑square‑foot building constructed in 2006
