Two-Building Medical Office
For Sale
$2,500,000
1032 Luke St, Fort Collins, CO 80524
Owner-user space is paired with a separately leased medical office building.
Property Size14,696 SF
Price / SF$170.11
Days on Market308
Property Features for 1032 Luke St
General Information
Standard status
Active
Size
14,696 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$36,065
Amenities
Central Air
3
E
12456
Building Details
Year Built
1970
Buildings
2
Tenancy
Multi
Listing Agency:
CBRE Inc
(970) 402-5170
Listed By:
TJ Antinora · License #100066530
(970) 402-5170
Source:
Xome
Added: Oct 18, 2025
Changed: Aug 21
Last Checked: Aug 21 at 4:30AM
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 CBRE Inc
Investment Insights
Based on property information with market context.
This medical office campus comprises two buildings totaling 14,696 SF at 1020 and 1032 Luke Street in Fort Collins. The 8,644 SF building at 1032 Luke Street is available for occupancy and includes a recently remodeled portion, while the 6,052 SF building at 1020 Luke Street is fully leased to established medical practitioners. Both buildings were constructed in 1970 and feature central air.
The campus is directly across from the emergency room at UCHealth Poudre Valley Hospital, placing the property within an established medical setting. Named occupants in the leased building include Aspen Wellness Center and the Acupuncture Clinic of Fort Collins. The two-building configuration combines available medical office space with an occupied companion building on the same campus.
The campus is directly across from the emergency room at UCHealth Poudre Valley Hospital, placing the property within an established medical setting. Named occupants in the leased building include Aspen Wellness Center and the Acupuncture Clinic of Fort Collins. The two-building configuration combines available medical office space with an occupied companion building on the same campus.
Key Highlights
- Two‑building medical office campus totals 14,696 SF
- 1032 Luke Street building contains 8,644 SF and is available for occupancy
- 1020 Luke Street building contains 6,052 SF and is fully leased
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
$206,221
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
8.25%
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%
$4,124,420
$4.1M
Cap Rate 7%
$2,946,014
$2.9M
Cap Rate 9%
$2,291,344
$2.3M
Market Conditions
NOI Build-Up for 14,696 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
$322.7K $21.96/SF
− Vacancy
−$47.8K −$3.25/SF
EGI
$275.0K $18.71/SF
− OpEx
−$68.7K −$4.68/SF
NOI
$206.2K $14.03/SF
Area
Fort Collins, CO
Vacancy
14.80%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
25.00%
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%
$4,124,420
Cap Rate 7%
$2,946,014
Cap Rate 9%
$2,291,344
Alternative Uses
Best Use
Office B
$2.95M
$2.58M – $3.44M
NOI $206,221 @ 7.0% cap · market cap 8.25%
Second Best
Healthcare Medical
$2.92M
$2.56M – $3.41M
NOI $204,427 @ 7.0% cap · market cap 8.18%
Theoretical Best
Office A
$3.83M
$3.35M – $4.46M
NOI $267,879 @ 7.0% cap · market cap 10.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,840
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80524, CO
39,030
Population
17,548
Households
2.2
Avg Household Size
37
Median Age
52%
College-Educated
94%
High-School Grad
122.7 sq mi
ZIP Area
318
Density / Sq Mi
$84,440
Median Household Income
$45,046
Median Earnings
$1,623
Median Rent
$527,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Owner-user space is paired with a separately leased medical office building.
Where is this medical office space located?
The property is located at 1032 Luke St Fort Collins, CO.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Two‑building medical office campus totals 14,696 SF; 1032 Luke Street building contains 8,644 SF and is available for occupancy; 1020 Luke Street building contains 6,052 SF and is fully leased
