Medical Office Building With Two
For Sale
$3,795,000
5601 Virginia Pkwy, McKinney, TX 75071
Fee simple medical office with two suites available for immediate use and income from surrounding medical tenants.
Property Size11,116 SF
Price / SF$341.40
Days on Market96
Property Features for 5601 Virginia Pkwy
General Information
Standard status
Active
Size
11,116 SF
Property subtype
Office Medical
Occupancy
100%
Amenities
Fully Leased Medical Office
Located in an Medical Office Park with Historical High Occupancy
WALT over Three and a Half years
Building Details
Building Size
11,116 SF
Year Built
2000
Listing Agency:
Fort Worth Office
Listed By:
Brad Mills · License #License(s): TX: 732895
(817) 932-6137
Source:
Marcusmillichap
Added: Jun 17
Changed: Sep 7
Last Checked: Sep 20 at 5:15AM
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 Fort Worth Office
Investment Insights
Based on property information with market context.
The property is a fee simple medical office building built in 2000, offering a total of 11,116 rentable square feet. The building is currently 66 percent occupied with medical tenants and includes available space designed to support additional revenue. Two suites are available for immediate use: one suite at 2,000 square feet and another at 1,686 square feet, providing options for an owner-occupant or an investor seeking lease-up flexibility.
Located at 5601 Virginia Parkway in McKinney, Texas, the office building is situated minutes from Central Expressway and Baylor Scott & White Medical Center. The surrounding area is described as a mix of mature neighborhoods, elementary schools, and local retail, supporting a stable day-to-day demand base for healthcare and related professional services.
For tenants, the availability of two move-in-ready suites can simplify timing for medical practices or other office users aligned with the property’s established tenant mix. For buyers, the existing occupied portion with medical tenants, combined with vacant space ready to lease, creates a straightforward platform for both investor and owner-user strategies without requiring repositioning described in the offering.
Located at 5601 Virginia Parkway in McKinney, Texas, the office building is situated minutes from Central Expressway and Baylor Scott & White Medical Center. The surrounding area is described as a mix of mature neighborhoods, elementary schools, and local retail, supporting a stable day-to-day demand base for healthcare and related professional services.
For tenants, the availability of two move-in-ready suites can simplify timing for medical practices or other office users aligned with the property’s established tenant mix. For buyers, the existing occupied portion with medical tenants, combined with vacant space ready to lease, creates a straightforward platform for both investor and owner-user strategies without requiring repositioning described in the offering.
Key Highlights
- Fee simple medical office built in 2000 with 11,116 SF of rentable space
- Currently 66% occupied with medical tenants producing net operating income, plus a vacant space to add revenue
- Two suites available for immediate use: 2,000 SF and 1,686 SF
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
$144,063
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
3.80%
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%
$2,881,260
$2.9M
Cap Rate 7%
$2,058,043
$2.1M
Cap Rate 9%
$1,600,700
$1.6M
Market Conditions
NOI Build-Up for 11,116 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
$266.8K $24.00/SF
− Vacancy
−$26.7K −$2.40/SF
EGI
$240.1K $21.60/SF
− OpEx
−$96.0K −$8.64/SF
NOI
$144.1K $12.96/SF
Area
McKinney, 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%
$2,881,260
Cap Rate 7%
$2,058,043
Cap Rate 9%
$1,600,700
Alternative Uses
Best Use
Healthcare Medical
$2.06M
$1.80M – $2.40M
NOI $144,063 @ 7.0% cap · market cap 3.80%
Second Best
Office B
$2.04M
$1.79M – $2.38M
NOI $142,803 @ 7.0% cap · market cap 3.76%
Theoretical Best
Office A
$3.13M
$2.73M – $3.65M
NOI $218,763 @ 7.0% cap · market cap 5.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
396
Businesses Nearby
Explore this area
Business Placement
Demographics for 75071, TX
64,449
Population
23,861
Households
2.7
Avg Household Size
35
Median Age
51%
College-Educated
94%
High-School Grad
74.1 sq mi
ZIP Area
870
Density / Sq Mi
$132,839
Median Household Income
$63,459
Median Earnings
$2,105
Median Rent
$448,500
Median Home Value
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Fee simple medical office with two suites available for immediate use and income from surrounding medical tenants.
Where is this office building located?
The property is located at 5601 Virginia Pkwy McKinney, TX.
What is the asking price?
The asking price for this property is $3,795,000.
What are key features of this property?
This property features: Fee simple medical office built in 2000 with 11,116 SF of rentable space; Currently 66% occupied with medical tenants producing net operating income, plus a vacant space to add revenue; Two suites available for immediate use: 2,000 SF and 1,686 SF
