2109 W Texas Ave 11,080 SF 100% Leased Office Building Midland, TX 79701 $1,275,000 ($115.07/SF) 9.61% Cap Rate

Midland Medical Plaza is a 100% occupied, multi-tenant office/retail center with an outstanding corner location on West Texas Avenue, one block southeast of the Midland Memorial Hospital Main Camp;us and 200 feet east of Andrews Highway (SH-158). Andrews Highway is the main surface arterial highway between Midland and Odessa. The property is directly across Texas Avenue from St. Ann's Catholic School. The property includes 11,080 rentable square feet on a 31,494 square foot rectangular parcel. The property has approximately 230 linear feet of frontage on Texas Avenue and has approximately 35 parking spaces in an on-site surface parking lot. In addition, there are approximately thirteen public street parking spaces along the front and side of the property. This single-story property was constructed in 1960 and includes fourteen suites ranging from 347-1,756 square feet in size. The owner reportedly spent over $250,000 in renovation of the property, including expenses for roofs and HVAC systems since 2023. With one exception, lease rates are full-service gross and range from approximately $16.00 to $27.00/rsf/year, currently averaging $20.27/rsf/year. Eight of the suites are leased with leases terminating in 2026 through 2028. The average lease rate for those eight suites is $21.32/rsf/year. Six of the suites are leased on a month-to-month basis. The average lease rate for those six suites is $19.50/rsf/year. Most tenants operate local, service-based businesses.
Small suites in this prime location are extremely popular and there may be significant upside in lease rates for a new owner. The current owner has intentionally allowed several leases to expire with tenants continuing on a month-to-month basis to allow a buyer flexibility in his future operation of the property.
The purchase of Midland Medical Plaza is an excellent opportunity to acquire a stabilized, income-producing, multi-tenant office/retail asset with a strategic location in the heart of Midland. The city of Midland, with a population of 145,000 and its adjacent city of Odessa, with a population of 120,000, are located on one of the fastest growing markets in the Permian Basin region, the energy-producing hub of West Texas.