Medical Office Building with
For Sale
$2,280,000
126 PUUHONU WAY, Hilo, HI 96720
SINGLE_FAMILY - Hilo, HI
Property Size4,557 SF
Lot Size0.23 Acres
Price / SF$500.33
Days on Market431
Property Features for 126 PUUHONU WAY
General Information
Property type
Residential
Property subtype
Office
Zoning
CN-10
Bathrooms
3
Full bathrooms
1
Half bathrooms
2
Rooms
Bathroom 2, Bathroom 1, Bathroom 3
Parking features
Covered
Subdivision
PUNAHOA 1ST & 2ND
Lot features
Cleared
View
Ocean
Standard status
Active
APN
3230350290000
Size
4,557 SF
Lot size
0.23 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
12376
Utilities
Utilities
Cable Available
Sewer type
Septic Tank
Water source
Public
Amenities
ADA accessible
reception area
conference room
doctor's offices
examination rooms
staff room
kitchen
Building Details
Year built
1995
Floors in Building
2
Number of units
1
Listing Agency:
Pacific Image Properties
(808) 870-1009
Listed By:
Tony Wang
(808) 386-5548
Added: Jun 17, 2025
Changed: Aug 4
Last Checked: Aug 21 at 9:06AM
MLS# 721952
Copyright © 2026 Hawaii Information Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
The 4,557-square-foot medical office building was built in 1995 and is configured for clinical operations. Interior features include an elevator, ADA accessibility, a reception area, conference room, doctor's offices, six examination rooms, a staff room, kitchen, and three bathrooms. Covered parking is available, with additional parking on site and along the street.
Situated on a 0.23-acre parcel at 126 Puuhonu Way in Hilo, the property carries CN-10 zoning. Public water and septic service are identified, with cable available. The layout provides a range of patient-facing, administrative, and staff-support spaces within a purpose-built medical office setting.
Situated on a 0.23-acre parcel at 126 Puuhonu Way in Hilo, the property carries CN-10 zoning. Public water and septic service are identified, with cable available. The layout provides a range of patient-facing, administrative, and staff-support spaces within a purpose-built medical office setting.
Key Highlights
- 4,557‑square‑foot medical office building on a 0.23‑acre parcel
- Six examination rooms plus doctor's offices, reception, conference, and staff areas
- Elevator and ADA‑accessible design
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
$64,872
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
2.85%
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%
$1,297,440
$1.3M
Cap Rate 7%
$926,743
$926.7K
Cap Rate 9%
$720,800
$720.8K
Market Conditions
NOI Build-Up for 4,557 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
$101.2K $22.20/SF
− Vacancy
−$14.7K −$3.22/SF
EGI
$86.5K $18.98/SF
− OpEx
−$21.6K −$4.75/SF
NOI
$64.9K $14.24/SF
Area
Hawaii County, HI
Vacancy
14.50%
Lease Rate
$22.20 /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%
$1,297,440
Cap Rate 7%
$926,743
Cap Rate 9%
$720,800
Alternative Uses
Best Use
Office B
$926.7K
$810.9K – $1.08M
NOI $64,872 @ 7.0% cap · market cap 2.85%
Second Best
Healthcare Medical
$900.6K
$788.1K – $1.05M
NOI $63,045 @ 7.0% cap · market cap 2.77%
Theoretical Best
Specialty Retail
$1.56M
$1.36M – $1.81M
NOI $108,865 @ 7.0% cap · market cap 4.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 96720, HI
46,615
Population
19,826
Households
2.4
Avg Household Size
43
Median Age
34%
College-Educated
95%
High-School Grad
287.8 sq mi
ZIP Area
162
Density / Sq Mi
$78,537
Median Household Income
$41,268
Median Earnings
$1,346
Median Rent
$458,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - ADA-accessible medical facility with reception, conference, examination, and staff areas.
Where is this medical office space located?
The property is located at 126 PUUHONU WAY Hilo, HI.
What is the asking price?
The asking price for this property is $2,280,000.
What are key features of this property?
This property features: 4,557‑square‑foot medical office building on a 0.23‑acre parcel; Six examination rooms plus doctor's offices, reception, conference, and staff areas; Elevator and ADA‑accessible design
