Medical Office Space For
For Sale
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1 Mercy Ln, Hot Springs, AR 71913
Medical office space in a bustling Hot Springs corridor.
Property Size3,893 SF
Price / SF$153.87
Days on Market102
Property Features for 1 Mercy Ln
General Information
Standard status
Active
Size
3,893 SF
Property subtype
OFFICE
Lease Type
NNN
Properties For Sale
at 1 Mercy Ln Contact us- Floor
- 4
- Size
- 3,893 SF
- Type
- OFFICE
- Lease Type
- NNN
- Availability
- AVAILABLE, Now
Professional Office Condo For Sale or Lease
3,893 SF medical office condo, Unit 4-C
CHI St. Vincent Medical Building
Four to...
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Listing Agency:
Colliers - Hot Springs
(501) 627-2141
Listed By:
Karolyn Fankhouser · License #EB00044496
(501) 627-2141
Source:
Moodyscre
Added: May 23
Changed: Aug 31
Last Checked: Aug 31 at 12:24AM
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 Colliers - Hot Springs
Investment Insights
Based on property information with market context.
This 3,893 square foot commercial real estate is located in Hot Springs, Arkansas, adjacent to CHI St. Vincent Hospital. The property is situated in a bustling corridor, near shopping, dining, and restaurants. The layout includes four to five offices, including an executive suite, five exam rooms, a meeting/training room, and a break room. The property is located in the CHI St. Vincent Medical Building. The minimum lease term is three years. This property is suitable for medical office space.
Key Highlights
- Adjacent to CHI St. Vincent Hospital
- CHI St. Vincent Medical Building
- Prime Hot Springs location
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
$37,595
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
6.28%
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%
$751,900
$751.9K
Cap Rate 7%
$537,071
$537.1K
Cap Rate 9%
$417,722
$417.7K
Market Conditions
NOI Build-Up for 3,893 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
$67.7K $17.40/SF
− Vacancy
−$5.1K −$1.31/SF
EGI
$62.7K $16.10/SF
− OpEx
−$25.1K −$6.44/SF
NOI
$37.6K $9.66/SF
Area
Garland County, AR
Vacancy
7.50%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
40.00%
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%
$751,900
Cap Rate 7%
$537,071
Cap Rate 9%
$417,722
Alternative Uses
Best Use
Healthcare Medical
$537.1K
$469.9K – $626.6K
NOI $37,595 @ 7.0% cap · market cap 6.28%
Second Best
Office B
$534.0K
$467.2K – $623.0K
NOI $37,377 @ 7.0% cap · market cap 6.24%
Theoretical Best
Office A
$712.0K
$623.0K – $830.6K
NOI $49,837 @ 7.0% cap · market cap 8.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,287
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 71913, AR
46,801
Population
25,441
Households
1.8
Avg Household Size
44
Median Age
28%
College-Educated
91%
High-School Grad
134.2 sq mi
ZIP Area
349
Density / Sq Mi
$55,367
Median Household Income
$32,746
Median Earnings
$970
Median Rent
$179,200
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?
Medical Office Space - Medical office space in a bustling Hot Springs corridor.
Where is this medical office space located?
The property is located at 1 Mercy Ln Hot Springs, AR.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Adjacent to CHI St. Vincent Hospital; CHI St. Vincent Medical Building; Prime Hot Springs location
