Flex Property with Highway
For Sale
$4,160,000
Tract 1 E IH-20, Midland, TX 79706
Office, shop, garage, and covered outdoor areas support a range of commercial functions.
Property Size17,805 SF
Lot Size18.00 Acres
Price / SF$233.64
Days on Market13
Property Features for Tract 1 E IH-20
General Information
Standard status
Active
Size
17,805 SF
Lot size
18.00 Acres
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
2006
Buildings
1
Building Size
17,805 SF
Listing Agency:
The Real Estate Ranch LLC
(432) 661-5505
Listed By:
Pamela Mendoza · License #542176
(432) 661-5505
Source:
Beyondrealtytexas.idxbroker
Added: Aug 17
Changed: Aug 24
Last Checked: Aug 29 at 5:46AM
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 18-acre flex property includes a 17,805-square-foot building completed in 2006. Approximately 12,000 square feet has heat and AC, while the balance consists of a carbarn, garage, shop, porches, and awnings. The improvements also include a home/office with interior finishes, appliances, and fixtures, plus a 1,500-square-foot solid concrete-cased safe room.
The tract provides 900 feet of frontage along I-20 and includes a 2/3-acre lake. Site features include Bermuda grass, sprinklers, and more than 300 trees estimated at 20–25 years old. The property is part of a 43.5-acre tract and is situated in an industrial area of the Permian Basin.
The tract provides 900 feet of frontage along I-20 and includes a 2/3-acre lake. Site features include Bermuda grass, sprinklers, and more than 300 trees estimated at 20–25 years old. The property is part of a 43.5-acre tract and is situated in an industrial area of the Permian Basin.
Key Highlights
- 18 acres within a 43.5‑acre tract
- 900' of I‑20 frontage
- 17,805‑square‑foot building built 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
Warehouse
$2.77M
$2.42M – $3.23M
NOI $193,933 @ 7.0% cap · market cap 4.66%
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
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,246
Businesses Nearby
Under-served
Demand for This Use
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?
Flex space - Office, shop, garage, and covered outdoor areas support a range of commercial functions.
Where is this flex space located?
The property is located at Tract 1 E IH-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' of I‑20 frontage; 17,805‑square‑foot building built in 2006
