Sign Up Successful!
You now have access to more from Realmo!
Property Lookup
    Property Lookup
    • For Sale
    • For Lease
    • Recently Sold
    • Property Lookup
    • Brokers
    AI Search
    Back to Search
    The Largest CRE Database in the US with Over 1 Million Listings
    Property profile & analytics

    506 Shipp St Hobbs, NM 88240

    • Commercial real estate
    OFF-MARKET
    Value Estimations
    Cap Rate Potential
    Location Intelligence
    Property ID
    US61-0587276
    The Realmo ID is a unique identifier assigned to every property, incorporating country codes and precise geo-coordinates for 300x300-foot land blocks. It enables standardized data collection and seamless integration of disparate sources such as ownership, tax, title data and physical specifications. By aggregating current and historical records, the Realmo ID powers advanced analytics and delivers deep, verifiable insights for real estate professionals.

    Current Use by Public Records

    • Boggs Deborah / Dentist

    Property Details for 506 Shipp St

    Year built
    1950
    Property type
    Commercial real estate

    Description

    This exceptional commercial property at 506 N Shipp in Hobbs, New Mexico, presents a compelling investment opportunity. The property encompasses a substantial 13,020 square foot lot, featuring a 3,036 square foot building constructed in 1950. The building itself is well-suited for a variety of commercial uses, including office or medical spaces. Inside, you'll find multiple offices and three bathrooms, providing ample space for employees and clients. The property's layout is designed for functionality and efficiency. Beyond the building, a significant advantage is the large backyard complete with a patio, offering potential for outdoor use or expansion. Rear parking is also provided, ensuring convenient access for employees and visitors. The property's location in a quiet neighborhood near downtown Hobbs offers a blend of tranquility and accessibility, providing easy access to local amenities and businesses. The asking price for this versatile property is $349,000. This presents a rare chance to acquire a well-established commercial property in a thriving New Mexico community with significant growth potential. The property is located in Lea County, New Mexico, zip code 88240.

    Value Estimations

    based on Realmo’s proprietary methodology

    • AI approach

    • CAP approach

    • Comparable approach

    • Alternative Use

    Get a detailed, property-specific valuation — fast and free

    Location Insight

    • Map
    • Local Demand
    City
    Hobbs
    County
    Lea
    State
    New Mexico
    Longitude
    -103.1371854
    Latitude
    32.7053845

    Comparable in this City

    • $440,000

      608 S Commerce Street

      Distribution properties
      608 Commerce St, Arkansas Junction, NM 88240
      View Details
    • $225,000

      Hobbs Commercial Land & Building

      Prime Hobbs location, office & retail potential.
      508 Dalmont St, Hobbs, NM 88240
      View Details
    • $530,000
      Pending

      Downtown Hobbs Retail Investment Property

      Turn-key retail property in downtown Hobbs with seasoned tenants.
      203 W Broadway St, Hobbs, NM 88240
      View Details
    • $425,000
      5,000 SF

      Hobbs Multi-Office Building For Sale

      Large office building in downtown Hobbs, suitable for medical or office.
      311 W Broadway St, Hobbs, NM 88240
      View Details
    • $5,868,838
      29.94 Acres

      Prime Lea County Commercial Land

      29.94 Acres, $5.8M Asking Price
      0 Tbd Lovington Hobbs, Arkansas Junction, NM 88240
      View Details
    • $350,000
      4.20 Acres

      Hobbs, NM Commercial Land for Sale

      4.2 Acres, Prime Commercial Location
      6721 World Dr, Hobbs, NM 88240
      View Details

    Similar Nearby for Sale

    • $440,000

      608 S Commerce Street

      Distribution properties
      608 Commerce St, Arkansas Junction, NM 88240
      View Details
    • $225,000

      Hobbs Commercial Land & Building

      Prime Hobbs location, office & retail potential.
      508 Dalmont St, Hobbs, NM 88240
      View Details
    • $530,000
      Pending

      Downtown Hobbs Retail Investment Property

      Turn-key retail property in downtown Hobbs with seasoned tenants.
      203 W Broadway St, Hobbs, NM 88240
      View Details
    • $425,000
      5,000 SF

      Hobbs Multi-Office Building For Sale

      Large office building in downtown Hobbs, suitable for medical or office.
      311 W Broadway St, Hobbs, NM 88240
      View Details
    • $550,000
      2.22 Acres

      Hobbs Land: Navajo Drive Opportunity

      2.22 Acres, City Utilities, Owner Financing
      300 Navajo Dr, Hobbs, NM 88240
      View Details
    • $200,000
      2.16 Acres

      Hobbs, NM Land - 2.156 Acres

      Prime Lea County development opportunity.
      0 Tbd Pearl Dr Dr, Arkansas Junction, NM 88240
      View Details

    Similar Nearby for Lease

    • Contact for pricing
      1,600 SF

      Hobbs, NM Office Space for Lease

      Prime Hobbs office space, multiple suites available.
      3601 Grimes St, Hobbs, NM 88240
      View Details
    • Contact for pricing
      21,333 SF

      Hobbs Office Space: 6,329 SF Available

      Prime Hobbs location, flexible office space. High traffic, near major retailers.
      1701 Joe Harvey Blvd, Hobbs, NM 88240
      View Details
    • Contact for pricing
      195,584 SF

      Hobbs Retail Land Opportunity

      Prime Lea County location, build-to-suit options.
      4100 Lovington Hwy, Hobbs, NM 88240
      View Details
    • Contact for pricing

      Hobbs, NM Commercial Warehouse

      High-traffic corner lot, versatile space.
      109 Dal Paso St, Hobbs, NM 88240
      View Details
    • $7 SF/Yr
      28,000 SF

      Retail Space in Bel Aire Center

      28,000 SF available in established Hobbs shopping center.
      931 E Bender Blvd, Hobbs, NM 88240
      View Details
    • Contact for pricing
      2,513 SF

      Retail Space in Hobbs, NM

      Retail space available for lease in Hobbs, New Mexico.
      3920 N Lovington Hwy, Hobbs, NM 88240
      View Details
    Request Owner's contact information
    Message sent successfully
    Error
    If you are the owner or broker of this property and would like to edit or remove this listing please send a message to web site administrator.
    506 Shipp St
    Hobbs, NM 88240
    Message sent successfully
    Error
    Email to Your Friends
    Link copied to clipboard
    Separate multiple addresses with a comma
    Message sent successfully
    Error

    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    Thanks! Your message was sent.
    Error! Your message wasn't sent.
    Please enter your name
    Please enter email
    Please enter the email in the correct format
    Please enter phone
    Please enter the number in the correct format
    Please enter message
    Thank You

    You are Unsubscribed From Notifications

    Google sign-in failed. Please try again or use another login method.
    Create New Password
    • At least 8 characters
    • Contains both letters and numbers
    • Contains uppercase and lowercase letters
    • At most 32 characters
    • Password required
    • Password reset link has expired. Please request a new one.