Garland Medical Facility Sale-Leaseback
For Sale
Contact for pricing
Pending
10901 Garland Rd, Dallas, TX 75218
15,536 SF medical facility in Garland, TX for sale.
Property Size15,536 SF
Lot Size0.48 Acres
Days on Market571
Property Features for 10901 Garland Rd
General Information
Standard status
Pending
Size
15,536 SF
Lot size
0.48 Acres
Property subtype
Office
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Sale/Leaseback
Net Operating Income
$326,256
Building Details
Year Built
1967
Year Renovated
2006
Buildings
1
Stories
1
Units
1
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Dallas
Listed By:
William Kim · License #TX 755628
(972) 755-5200
Source:
Crexi
Added: Feb 10, 2025
Changed: Aug 8
Last Checked: Sep 2 at 4:29AM
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 Marcus & Millichap - Dallas
Investment Insights
Based on property information with market context.
This 15,536 square-foot medical facility is located in Garland, a Dallas-Fort Worth metro city in Texas, and sits on a 0.48-acre lot. The building was established in 2006. The property is currently occupied by Smiley Dental & Orthodontics Clinic, Smiley Dental Management Office, and Clinica San Andres. Smiley Dental & Orthodontics will sign a new 15-year absolute NNN lease for the entire building. The lease has no landlord responsibilities, with the tenant paying all expenses directly, and includes annual two percent increases and four 5-year options. Smiley Dental & Orthodontics was founded 20 years ago in 2003 and currently has 35 locations in Texas with around 60 providers and 300 employees. Smiley Dental & Orthodontics' vision is to provide all ranges of dental services including general dentistry, orthodontics, and oral surgery, all in one place at an affordable price. This property presents an opportunity for a passive investor seeking high return with complete hands-off operation in the Dallas-Fort Worth Metro.
Key Highlights
- New 15‑year absolute NNN lease with no landlord responsibilities
- Annual two percent rent increases, hedging against inflation
- Tenant has four 5‑year renewal options
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
$201,347
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
4.47%
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%
$4,026,940
$4.0M
Cap Rate 7%
$2,876,386
$2.9M
Cap Rate 9%
$2,237,189
$2.2M
Market Conditions
NOI Build-Up for 15,536 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
$372.9K $24.00/SF
− Vacancy
−$37.3K −$2.40/SF
EGI
$335.6K $21.60/SF
− OpEx
−$134.2K −$8.64/SF
NOI
$201.3K $12.96/SF
Area
Dallas, TX
Vacancy
10.00%
Lease Rate
$24.00 /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%
$4,026,940
Cap Rate 7%
$2,876,386
Cap Rate 9%
$2,237,189
Alternative Uses
Best Use
Office B
$12.76M
$11.16M – $14.89M
NOI $893,185 @ 7.0% cap · market cap 19.85%
Second Best
Healthcare Medical
$2.88M
$2.52M – $3.36M
NOI $201,347 @ 7.0% cap · market cap 4.47%
Theoretical Best
Office A
$18.64M
$16.31M – $21.75M
NOI $1,304,935 @ 7.0% cap · market cap 29.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
725
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 75218, TX
23,136
Population
10,443
Households
2.2
Avg Household Size
41
Median Age
61%
College-Educated
92%
High-School Grad
6.9 sq mi
ZIP Area
3,353
Density / Sq Mi
$109,677
Median Household Income
$66,216
Median Earnings
$1,651
Median Rent
$476,000
Median Home Value
Market
Vacancy Rate% for Office in Dallas, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - 15,536 SF medical facility in Garland, TX for sale.
Where is this medical office space located?
The property is located at 10901 Garland Rd Dallas, TX.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: New 15‑year absolute NNN lease with no landlord responsibilities; Annual two percent rent increases, hedging against inflation; Tenant has four 5‑year renewal options
