Medical Office Suite with Exam
For Sale
$699,000
111 Dakota Avenue, Santa Cruz, CA 95060
Turnkey commercial space with private exam rooms, a reception area, and specialized plumbing and electrical infrastructure.
Property Size1,390 SF
Price / SF$502.88
Days on Market76
Property Features for 111 Dakota Avenue
General Information
Standard status
Active
Size
1,390 SF
Property subtype
Commercial/Industrial
Additional Details
Business Included
Yes
Building Details
Year Built
1982
Listing Agency:
Compass
(408) 721-6775
Listed By:
Joseph Zahriya · License #01486890
(408) 666-4608
Source:
Exitrealty
Added: Jun 27
Changed: Sep 9
Last Checked: Sep 9 at 6:43AM
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 Compass
Investment Insights
Based on property information with market context.
This versatile commercial space is designed to support professional healthcare and service uses, with an interior layout that includes multiple private exam rooms, consultation spaces, and a welcoming reception area. Specialized plumbing and electrical infrastructure is already in place, which can support a streamlined setup for medical, dental, or other service-oriented operations.
Large windows throughout the workspace bring in natural light, helping create a bright environment for staff and clients. The property has been used as a successful medical and dental facility, as well as a specialized veterinary clinic.
Located in a high-visibility area with convenient client access, the space is presented as a turnkey-ready option with a floor plan that can accommodate a range of professional service needs.
Large windows throughout the workspace bring in natural light, helping create a bright environment for staff and clients. The property has been used as a successful medical and dental facility, as well as a specialized veterinary clinic.
Located in a high-visibility area with convenient client access, the space is presented as a turnkey-ready option with a floor plan that can accommodate a range of professional service needs.
Key Highlights
- Commercial space built in 1982 with a layout suited for professional practices
- Configured with multiple private exam rooms plus consultation spaces and a reception area
- Specialized plumbing and electrical infrastructure already in place for healthcare/clinical use
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
$42,919
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
6.14%
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%
$858,380
$858.4K
Cap Rate 7%
$613,129
$613.1K
Cap Rate 9%
$476,878
$476.9K
Market Conditions
NOI Build-Up for 1,390 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
$75.1K $54.00/SF
− Vacancy
−$3.5K −$2.54/SF
EGI
$71.5K $51.46/SF
− OpEx
−$28.6K −$20.58/SF
NOI
$42.9K $30.88/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$54.00 /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%
$858,380
Cap Rate 7%
$613,129
Cap Rate 9%
$476,878
Alternative Uses
Best Use
Healthcare Medical
$613.1K
$536.5K – $715.3K
NOI $42,919 @ 7.0% cap · market cap 6.14%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$794.8K
$695.5K – $927.3K
NOI $55,636 @ 7.0% cap · market cap 7.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
4,192
Businesses Nearby
Explore this area
Business Placement
Demographics for 95060, CA
47,931
Population
20,181
Households
2.4
Avg Household Size
39
Median Age
55%
College-Educated
94%
High-School Grad
54.5 sq mi
ZIP Area
879
Density / Sq Mi
$106,040
Median Household Income
$46,231
Median Earnings
$2,356
Median Rent
$1,189,300
Median Home Value
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Frequently Asked Questions
What type of property is this?
Medical center - Turnkey commercial space with private exam rooms, a reception area, and specialized plumbing and electrical infrastructure.
Where is this medical center located?
The property is located at 111 Dakota Avenue Santa Cruz, CA.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Commercial space built in 1982 with a layout suited for professional practices; Configured with multiple private exam rooms plus consultation spaces and a reception area; Specialized plumbing and electrical infrastructure already in place for healthcare/clinical use
