Two-Building Medical Office
For Sale
$14,750,000
1000-1010 E Fifth St, Tyler, TX 75701
Medical office and retail improvements occupy a substantial Tyler Medical District site with a new 10-year lease in place.
Property Size49,895 SF
Days on Market194
Property Features for 1000-1010 E Fifth St
General Information
Standard status
Active
Size
49,895 SF
Property subtype
Multi Tenant Office
Building Details
Building Size
49,895 SF
Year Built
1995
Listing Agency:
Burns Commercial Properties
(903) 530-0955
Listed By:
Mark Whatley · License #423898
(903) 530-0955
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 1:30PM
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 Burns Commercial Properties
Investment Insights
Based on property information with market context.
The property comprises two medical office buildings totaling 52,045 SF on a 4.67-acre site. The larger building at 1000 E. Fifth St. contains 49,845 SF, while the second building at 1010 E. Fifth St. adds 2,200 SF. Constructed in 1995, the improvements support medical office, healthcare service, and retail uses identified for the property.
Located at 1000-1010 E. Fifth St. in Tyler, the site is positioned within the Tyler Medical District and offers visibility and accessibility along the medical corridor. A new 10-year lease is in place, providing an established lease term for the two-building property.
Located at 1000-1010 E. Fifth St. in Tyler, the site is positioned within the Tyler Medical District and offers visibility and accessibility along the medical corridor. A new 10-year lease is in place, providing an established lease term for the two-building property.
Key Highlights
- Two buildings totaling 52,045 SF on 4.67 acres
- 49,845 SF building at 1000 E. Fifth St.
- 2,200 SF building at 1010 E. Fifth St.
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
$603,530
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
4.09%
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%
$12,070,600
$12.1M
Cap Rate 7%
$8,621,857
$8.6M
Cap Rate 9%
$6,705,889
$6.7M
Market Conditions
NOI Build-Up for 49,895 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
$1.05M $21.00/SF
− Vacancy
−$41.9K −$0.84/SF
EGI
$1.01M $20.16/SF
− OpEx
−$402.4K −$8.06/SF
NOI
$603.5K $12.10/SF
Area
Tyler, TX
Vacancy
4.00%
Lease Rate
$21.00 /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%
$12,070,600
Cap Rate 7%
$8,621,857
Cap Rate 9%
$6,705,889
Alternative Uses
Best Use
Healthcare Medical
$8.62M
$7.54M – $10.06M
NOI $603,530 @ 7.0% cap · market cap 4.09%
Second Best
Office B
$8.61M
$7.53M – $10.04M
NOI $602,587 @ 7.0% cap · market cap 4.09%
Theoretical Best
Office A
$11.14M
$9.74M – $12.99M
NOI $779,545 @ 7.0% cap · market cap 5.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,650
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 75701, TX
34,502
Population
14,630
Households
2.4
Avg Household Size
35
Median Age
29%
College-Educated
89%
High-School Grad
14.1 sq mi
ZIP Area
2,447
Density / Sq Mi
$62,091
Median Household Income
$29,448
Median Earnings
$1,250
Median Rent
$190,500
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 and retail improvements occupy a substantial Tyler Medical District site with a new 10-year lease in place.
Where is this medical office space located?
The property is located at 1000-1010 E Fifth St Tyler, TX.
What is the asking price?
The asking price for this property is $14,750,000.
What are key features of this property?
This property features: Two buildings totaling 52,045 SF on 4.67 acres; 49,845 SF building at 1000 E. Fifth St.; 2,200 SF building at 1010 E. Fifth St.
