Freestanding Medical Office
For Sale
$1,600,000
Pending
1005 Division Street, Prescott, AZ 86301
Commercial Sale, Prescott, AZ
Property Size4,331 SF
Lot Size0.42 Acres
Days on Market97
Property Features for 1005 Division Street
General Information
Property type
Residential
Property subtype
Office
Zoning
BG
Zoning description
Business General
Parking
26
Parking features
On Street
Security features
Security, Security System
Interior features
Fire/Smoke Detector, Security/Alarm
Exterior features
Handicap Access
Accessibility
Accessible Approach with Ramp
Lot features
Landscaped
Directions
From Downtown Prescott, head North on Whipple St. to Willow Creek Road. Turn right onto Willow Creek Road to Ainsworth Dr. Turn Right onto Ainsworth Dr. which becomes Division St. The medical office building will be on the left.
Standard status
Pending
Lot size
0.42 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
AN IRREG PTN THE SW COR LYNG APPROX 1600' N & 840' E OF THE SW CO R OF SEC 28-14-2W CONT .42AC
Tax Annual Amount
6559
Legal Description
AN IRREG PTN THE SW COR LYNG APPROX 1600' N & 840' E OF THE SW CO R OF SEC 28-14-2W CONT .42AC
Utilities
Utilities
Phone Available
Heating system
Natural Gas
Cooling system
Gas (Cooling)
Water source
Public
Amenities
monument signage
Building Details
Year built
2000
Floors in Building
1
Number of units
1
Flooring type
Carpet, Laminate
Building materials
Frame, Stucco
Roof type
Asphalt, Metal
Listing Agency:
Better Homes And Gardens Real Estate Bloomtree Realty
(928) 443-8800
Listed By:
Raymond G. Zogob · License #SA553424000
(619) 997-3329
Added: May 25
Changed: Aug 28
Last Checked: Aug 29 at 7:06PM
MLS# 1082293
Copyright © 2026 Prescott Area Association of Realtors®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This freestanding, single-story medical office building was constructed in 2000 and has updated lobby and exterior facade improvements. The clinical layout includes nine exam rooms with sinks, three provider offices, a practice manager’s office, nurse’s station, laboratory, waiting area, storage areas, staff and patient restrooms, and a kitchen/breakroom. Interior features include laminate and carpet flooring, fire and smoke detection, and security/alarm systems.
The property occupies approximately 0.42 acres of Business General (BG) zoned land at 1005 Division Street in Prescott, Arizona. It is adjacent to Yavapai Regional Medical Center West Campus and includes 26 on-site parking spaces plus street parking. Monument signage provides visibility along Division Street. The current single-tenant NNN lease has over four years remaining, annual 3.0% rental increases, and multiple five-year renewal options with annual CPI-based adjustments.
The property occupies approximately 0.42 acres of Business General (BG) zoned land at 1005 Division Street in Prescott, Arizona. It is adjacent to Yavapai Regional Medical Center West Campus and includes 26 on-site parking spaces plus street parking. Monument signage provides visibility along Division Street. The current single-tenant NNN lease has over four years remaining, annual 3.0% rental increases, and multiple five-year renewal options with annual CPI-based adjustments.
Key Highlights
- Single‑story medical office building constructed in 2000
- Nine exam rooms with sinks, three provider offices, laboratory, and nurse’s station
- Approximately 0.42 acres of Business General (BG) zoned land
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
$70,558
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
4.41%
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%
$1,411,160
$1.4M
Cap Rate 7%
$1,007,971
$1.0M
Cap Rate 9%
$783,978
$784.0K
Market Conditions
NOI Build-Up for 4,331 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
$125.8K $29.04/SF
− Vacancy
−$8.2K −$1.89/SF
EGI
$117.6K $27.15/SF
− OpEx
−$47.0K −$10.86/SF
NOI
$70.6K $16.29/SF
Area
Yavapai County, AZ
Vacancy
6.50%
Lease Rate
$29.04 /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%
$1,411,160
Cap Rate 7%
$1,007,971
Cap Rate 9%
$783,978
Alternative Uses
Best Use
Healthcare Medical
$1.01M
$882.0K – $1.18M
NOI $70,558 @ 7.0% cap · market cap 4.41%
Second Best
Office B
$899.9K
$787.4K – $1.05M
NOI $62,991 @ 7.0% cap · market cap 3.94%
Theoretical Best
Warehouse
$1.45M
$1.27M – $1.69M
NOI $101,561 @ 7.0% cap · market cap 6.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,584
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 86301, AZ
25,115
Population
13,863
Households
1.8
Avg Household Size
57
Median Age
37%
College-Educated
96%
High-School Grad
33.4 sq mi
ZIP Area
752
Density / Sq Mi
$71,962
Median Household Income
$33,989
Median Earnings
$1,580
Median Rent
$495,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Renovated single-story medical facility with a dedicated clinical layout, on-site parking, and an established NNN lease structure.
Where is this medical office space located?
The property is located at 1005 Division Street Prescott, AZ.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Single‑story medical office building constructed in 2000; Nine exam rooms with sinks, three provider offices, laboratory, and nurse’s station; Approximately 0.42 acres of Business General (BG) zoned land
