Dental Office in Downtown
For Sale
$229,000
Pending
540 Vermont Street, Gridley, CA 95948
Converted residence with ample parking and storage in downtown Gridley.
Property Size1,043 SF
Lot Size0.16 Acres
Days on Market1302
Property Features for 540 Vermont Street
General Information
Standard status
Pending
Size
1,043 SF
Lot size
0.16 Acres
Property subtype
Commercial/Industrial
Building Details
Year Built
1900
Listing Agency:
Bill Chance Realty
(530) 343-7085
Listed By:
Jessica Henman · License #01920472
(530) 520-3109
Source:
Exitrealty
Added: Feb 16, 2023
Changed: Aug 12
Last Checked: Sep 10 at 5:52AM
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 Bill Chance Realty
Investment Insights
Based on property information with market context.
This property, originally a residence, has been converted into a dental office. The layout includes a waiting area, a private office, an exam room, a storage area equipped with a sink, a file storage area, and a bathroom. The property provides ample parking space at both the front and rear of the building. Additionally, there is a separate storage building located at the rear of the property. The building size is 1043 square feet. This commercial real estate is located in downtown Gridley.
Key Highlights
- Converted dental office featuring a waiting area, office, exam room, and bathroom.
- Ample parking available in both the front and rear.
- Additional storage building located at the rear of the property.
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
$20,259
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
8.85%
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%
$405,180
$405.2K
Cap Rate 7%
$289,414
$289.4K
Cap Rate 9%
$225,100
$225.1K
Market Conditions
NOI Build-Up for 1,043 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
$41.2K $39.48/SF
− Vacancy
−$7.4K −$7.11/SF
EGI
$33.8K $32.37/SF
− OpEx
−$13.5K −$12.95/SF
NOI
$20.3K $19.42/SF
Area
Butte County, CA
Vacancy
18.00%
Lease Rate
$39.48 /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%
$405,180
Cap Rate 7%
$289,414
Cap Rate 9%
$225,100
Alternative Uses
Best Use
Office B
$409.6K
$358.4K – $477.9K
NOI $28,672 @ 7.0% cap · market cap 12.52%
Second Best
Healthcare Medical
$289.4K
$253.2K – $337.7K
NOI $20,259 @ 7.0% cap · market cap 8.85%
Theoretical Best
Office A
$484.8K
$424.2K – $565.6K
NOI $33,934 @ 7.0% cap · market cap 14.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
431
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95948, CA
11,603
Population
4,149
Households
2.8
Avg Household Size
37
Median Age
19%
College-Educated
83%
High-School Grad
75.6 sq mi
ZIP Area
153
Density / Sq Mi
$60,759
Median Household Income
$39,905
Median Earnings
$1,162
Median Rent
$343,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Similar Off Market Nearby
- Gridley Veterinary Hospital — 27 E Gridley Rd A, Gridley, CA 95948
Frequently Asked Questions
What type of property is this?
Medical Office Space - Converted residence with ample parking and storage in downtown Gridley.
Where is this medical office space located?
The property is located at 540 Vermont Street Gridley, CA.
What is the asking price?
The asking price for this property is $229,000.
What are key features of this property?
This property features: Converted dental office featuring a waiting area, office, exam room, and bathroom.; Ample parking available in both the front and rear.; Additional storage building located at the rear of the property.
