The Houston Police Department said shots were fired at about 1:30 p.m. outside the Star Motor Company on Fuqua Street near Beamer Road.
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Authorities said an employee in his 20s or 30s was found with multiple gunshot wounds in the parking lot and was pronounced dead at the scene.
HPD said it all stemmed from a disagreement with a customer over a vehicle transaction. The argument reportedly escalated from verbal to physical before one of the two customers involved took out a gun and started shooting.
One of the customers allegedly began the physical altercation, and the other fired the gun.
Officials said the business is family-owned, adding that the employee killed was the owners' adult son.
Police said other customers fled the location. A nearby school was briefly put on lockdown as a precaution.
The lockdown has since been lifted, and it is not believed the suspect went anywhere near the school.
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Officers said they have very strong leads into the shooting that will hopefully lead to an arrest.
According to ABC13's Neighborhood Safety Tracker, two homicides were reported in the last 12 months in the area, including Sagemont, which is home to an estimated 22,000 people.
If you know anything about this case, authorities urge you to contact the Houston Police Department's Homicide Division at (713) 308-3600.
Eyewitness News is gathering facts on this breaking news story. Watch ABC13 newscasts throughout the evening for live updates and follow Mycah Hatfield on Facebook, Twitter and Instagram.