Medical Office in
For Sale
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17325 Red Oak Dr, Houston, TX 77090
Turnkey medical office in a high-demand Houston area.
Property Size6,818 SF
Price / SF$176
Days on Market570
Property Features for 17325 Red Oak Dr
General Information
Standard status
Active
Size
6,818 SF
Property subtype
Office
Zoning
NZ
Building Details
Year Built
1980
Listing Agency:
Seth Commercial
(832) 656-2358
Listed By:
Smita Singh · License #719694
Source:
Crexi
Added: Jan 20, 2025
Changed: Aug 8
Last Checked: Jul 23 at 10:58AM
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 Seth Commercial
Investment Insights
Based on property information with market context.
This 6,818 SF standalone medical office, located at 17325 Red Oak Dr, Houston, TX 77090, presents an opportunity to establish or expand a practice in North Houston’s healthcare corridor. The property is situated within a concentrated medical center, surrounded by approximately 400 practicing doctors within a 1-mile radius and in close proximity to major hospitals, including HCA Houston Northwest, BMC North Hospital, and Providence Hospital of North Houston. Originally constructed in 1980 and renovated in 2020, the space combines modern upgrades with a medical layout. The office features over 20 rooms, two operating rooms, and a recovery area, making it suitable for various medical specialties. Positioned 1 mile from I-45, the location provides accessibility for patients from The Woodlands, Spring, Cypress, and Kingwood.
Key Highlights
- 6,818 SF standalone medical office in a premier North Houston healthcare corridor.
- Located within a highly concentrated medical center, surrounded by nearly 400 doctors within a 1‑mile radius.
- Features 20+ rooms, two fully equipped operating rooms, and a dedicated recovery area.
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
$92,779
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
7.73%
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%
$1,855,580
$1.9M
Cap Rate 7%
$1,325,414
$1.3M
Cap Rate 9%
$1,030,878
$1.0M
Market Conditions
NOI Build-Up for 6,818 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
$171.8K $25.20/SF
− Vacancy
−$17.2K −$2.52/SF
EGI
$154.6K $22.68/SF
− OpEx
−$61.9K −$9.07/SF
NOI
$92.8K $13.61/SF
Area
Houston, TX
Vacancy
10.00%
Lease Rate
$25.20 /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%
$1,855,580
Cap Rate 7%
$1,325,414
Cap Rate 9%
$1,030,878
Alternative Uses
Best Use
Healthcare Medical
$1.33M
$1.16M – $1.55M
NOI $92,779 @ 7.0% cap · market cap 7.73%
Second Best
Office B
$1.14M
$994.1K – $1.33M
NOI $79,525 @ 7.0% cap · market cap 6.63%
Theoretical Best
Office A
$1.75M
$1.53M – $2.05M
NOI $122,724 @ 7.0% cap · market cap 10.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
13
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77090, TX
42,285
Population
19,076
Households
2.2
Avg Household Size
30
Median Age
25%
College-Educated
88%
High-School Grad
8.6 sq mi
ZIP Area
4,917
Density / Sq Mi
$48,196
Median Household Income
$35,936
Median Earnings
$1,228
Median Rent
$235,500
Median Home Value
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Turnkey medical office in a high-demand Houston area.
Where is this medical office space located?
The property is located at 17325 Red Oak Dr Houston, TX.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 6,818 SF standalone medical office in a premier North Houston healthcare corridor.; Located within a highly concentrated medical center, surrounded by nearly 400 doctors within a 1‑mile radius.; Features **20+ rooms, two fully equipped operating rooms, and a dedicated recovery area**.
