Medical Office Building For
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2829 Shore Dr, Virginia Beach, VA
Two-story medical office building in upscale Virginia Beach submarket.
Property Size12,571 SF
Lot Size1.00 Acres
Price / SF$418.42
Days on Market1099
Property Features for 2829 Shore Dr
General Information
Standard status
Active
Size
12,571 SF
Lot size
1.00 Acres
Property subtype
OFFICE
Listing Agency:
Divaris Real Estate - Hampton Roads
(757) 333-4383
Listed By:
Jason Oliver
Source:
Moodyscre
Added: Aug 21, 2023
Changed: Aug 17
Last Checked: Aug 23 at 12:19PM
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 Divaris Real Estate - Hampton Roads
Investment Insights
Based on property information with market context.
The property at 2829 Shore Drive is a two-story medical office building situated in the Hilltop/Great Neck submarket of Virginia Beach. Developed in 2005, the building measures 12,571 square feet. Its location at the corner of Shore Drive and Great Neck Road, one block from the Chesapeake Bay, contributes to its visibility in the area. The submarket encompasses 1.2 million square feet and has a vacancy rate of 5.0%. The building is currently home to Konikoff Dentistry (Dental Care Alliance) and Sailon Plastic Surgery.
Key Highlights
- Prime location at the corner of Shore Drive and Great Neck Road, near the Chesapeake Bay.
- Located in the upscale Hilltop/Great Neck submarket of Virginia Beach.
- Low submarket vacancy rate of 5.0%.
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
$167,304
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
3.18%
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%
$3,346,080
$3.3M
Cap Rate 7%
$2,390,057
$2.4M
Cap Rate 9%
$1,858,933
$1.9M
Market Conditions
NOI Build-Up for 12,571 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
$264.0K $21.00/SF
− Vacancy
−$40.9K −$3.26/SF
EGI
$223.1K $17.75/SF
− OpEx
−$55.8K −$4.44/SF
NOI
$167.3K $13.31/SF
Area
Virginia Beach, VA
Vacancy
15.50%
Lease Rate
$21.00 /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%
$3,346,080
Cap Rate 7%
$2,390,057
Cap Rate 9%
$1,858,933
Alternative Uses
Best Use
Office B
$2.39M
$2.09M – $2.79M
NOI $167,304 @ 7.0% cap · market cap 3.18%
Second Best
Healthcare Medical
$2.13M
$1.86M – $2.48M
NOI $149,072 @ 7.0% cap · market cap 2.83%
Theoretical Best
Office A
$3.22M
$2.82M – $3.76M
NOI $225,740 @ 7.0% cap · market cap 4.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
518
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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- Advanced Animal Care — 2247 W Great Neck Rd, Virginia Beach, VA 23451
- Thomas Debra D DVM — 2248 Ebb Tide Rd, Virginia Beach, VA 23451
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-story medical office building in upscale Virginia Beach submarket.
Where is this medical office space located?
The property is located at 2829 Shore Dr Virginia Beach, VA.
What is the asking price?
The asking price for this property is $5,260,000.
What are key features of this property?
This property features: Prime location at the corner of Shore Drive and Great Neck Road, near the Chesapeake Bay.; Located in the upscale Hilltop/Great Neck submarket of Virginia Beach.; Low submarket vacancy rate of 5.0%.
