Warehouse with I-20
For Sale
$4,160,000
Tract 1 E IH-20, Midland, TX 79706
COMMERCIAL - Midland, TX
Property Size17,805 SF
Lot Size18.00 Acres
Price / SF$233.64
Days on Market97
Property Features for Tract 1 E IH-20
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
38-T2S
Standard status
Active
Size
17,805 SF
Lot size
18.00 Acres
Taxes and HOA fees
Tax Description
18.0 acres out of a 45.3 tract out of SE/4 Sec 6, Block 38, T2S
Legal Description
18.0 acres out of a 45.3 tract out of SE/4 Sec 6, Block 38, T2S
Amenities
Safe Room
ManCave
Gunroom
Tornado Shelter
Building Details
Year built
2006
Listing Agency:
The Real Estate Ranch LLC
(432) 688-8200
Listed By:
Thomas Johnston ABR /CNHS · License #542176
(512) 970-1610
Added: May 28
Changed: Aug 4
Last Checked: Sep 1 at 4:06PM
MLS# 50095531
Copyright © 2026 Permian Basin 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.
Tract 1 is an 18-acre warehouse property built in 2006, comprising a total building area of 17,805 square feet. Approximately 12,000 square feet includes heat and AC, while the remainder is configured as a carbarn with additional garage, shop, and porches/awnings. The property also includes a home/office described as having top-level interior finishes, appliances, and fixtures.
The tract offers approximately 900 feet of frontage on I-20 and is part of a larger 43.5-acre tract. Exterior features include Bermuda grass and sprinklers, along with more than 300 trees that are described as 20–25 years old. The site overlooks a lake described as approximately 2/3 of an acre.
A standout improvement is a 1,500-square-foot solid concrete-cased safe room, including man cave, gun room, and tornado shelter features.
The tract offers approximately 900 feet of frontage on I-20 and is part of a larger 43.5-acre tract. Exterior features include Bermuda grass and sprinklers, along with more than 300 trees that are described as 20–25 years old. The site overlooks a lake described as approximately 2/3 of an acre.
A standout improvement is a 1,500-square-foot solid concrete-cased safe room, including man cave, gun room, and tornado shelter features.
Key Highlights
- 18‑acre tract with 900' of I‑20 frontage in the Permian Basin.
- 17,805 sqft building including 12,000 sqft with Heat & AC.
- High‑end home/office with top‑notch interior finishes, appliances, and fixtures.
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
$193,933
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
4.66%
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%
$3,878,660
$3.9M
Cap Rate 7%
$2,770,471
$2.8M
Cap Rate 9%
$2,154,811
$2.2M
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
$241.4K $13.56/SF
− Vacancy
−$13.3K −$0.75/SF
EGI
$228.2K $12.81/SF
− OpEx
−$34.2K −$1.92/SF
NOI
$193.9K $10.89/SF
Area
Midland, TX
Vacancy
5.50%
Lease Rate
$13.56 /SF/Yr
Expense Ratio
15.00%
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%
$3,878,660
Cap Rate 7%
$2,770,471
Cap Rate 9%
$2,154,811
Alternative Uses
Best Use
Warehouse
$2.77M
$2.42M – $3.23M
NOI $193,933 @ 7.0% cap · market cap 4.66%
Second Best
—
—
no second resolved use
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
99
Businesses Nearby
Well-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 Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Built in 2006 with 17,805 sq ft warehouse plus home/office, including 12,000 sq ft with heat and AC.
Where is this warehouse 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‑acre tract with 900' of I‑20 frontage in the Permian Basin.; 17,805 sqft building including **12,000 sqft with Heat & AC**.; High‑end home/office with top‑notch interior finishes, appliances, and fixtures.
