Turnkey Medical Office
For Sale
$2,250,000
1264 Malabar Road SE, Palm Bay, FL 32907
Established medical office building with a hospital tenant under a lease through 2027, plus two 1-year renewals.
Property Size5,010 SF
Price / SF$449.10
Days on Market124
Property Features for 1264 Malabar Road SE
General Information
Standard status
Active
Size
5,010 SF
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$17,681
Amenities
Interior Corridors, Kitchen Facilities, Lobby, Lounge, Medical, Office, Public Restroom, Rear Access, Reception Area
Central Air, Electric
Central, Electric
Off Street, Parking Lot, Unassigned
Building Details
Building Size
5,010 SF
Year Built
1988
Stories
1
Listing Agency:
Rahal Real Estate LLC
(321) 543-3540
Listed By:
Michael J Toppa · License #132713
(321) 543-3540
Source:
Evrealestate
Added: Apr 22
Changed: Aug 23
Last Checked: Aug 22 at 9:44AM
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 Rahal Real Estate LLC
Investment Insights
Based on property information with market context.
This turnkey medical office building is anchored by a stable hospital tenant in place since 2019. The property is currently generating $75,000 in annual gross income, with a lease term running through 2027 and two additional 1-year renewal options.
The offering is described as a medical office and development site and is located just off the Malabar Road corridor. The property also features a new roof installed in October 2025.
As presented, the parcel provides an income-producing medical office component together with development potential, supported by the existing, operating lease in place through the stated term.
The offering is described as a medical office and development site and is located just off the Malabar Road corridor. The property also features a new roof installed in October 2025.
As presented, the parcel provides an income-producing medical office component together with development potential, supported by the existing, operating lease in place through the stated term.
Key Highlights
- Established medical office building with a hospital tenant under lease through 2027
- Annual gross income of $75,000; includes two 1‑year renewal options
- New roof installed October 2025
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
$68,176
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
3.03%
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%
$1,363,520
$1.4M
Cap Rate 7%
$973,943
$973.9K
Cap Rate 9%
$757,511
$757.5K
Market Conditions
NOI Build-Up for 5,010 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
$108.2K $21.60/SF
− Vacancy
−$17.3K −$3.46/SF
EGI
$90.9K $18.14/SF
− OpEx
−$22.7K −$4.54/SF
NOI
$68.2K $13.61/SF
Area
Palm Bay, FL
Vacancy
16.00%
Lease Rate
$21.60 /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%
$1,363,520
Cap Rate 7%
$973,943
Cap Rate 9%
$757,511
Alternative Uses
Best Use
Office B
$973.9K
$852.2K – $1.14M
NOI $68,176 @ 7.0% cap · market cap 3.03%
Second Best
Healthcare Medical
$900.8K
$788.2K – $1.05M
NOI $63,054 @ 7.0% cap · market cap 2.80%
Theoretical Best
Office A
$1.32M
$1.16M – $1.54M
NOI $92,525 @ 7.0% cap · market cap 4.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
56
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 32907, FL
44,432
Population
17,761
Households
2.5
Avg Household Size
44
Median Age
22%
College-Educated
91%
High-School Grad
17.7 sq mi
ZIP Area
2,510
Density / Sq Mi
$71,827
Median Household Income
$36,498
Median Earnings
$1,693
Median Rent
$253,700
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Established medical office building with a hospital tenant under a lease through 2027, plus two 1-year renewals.
Where is this medical office space located?
The property is located at 1264 Malabar Road SE Palm Bay, FL.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Established medical office building with a hospital tenant under lease through 2027; Annual gross income of $75,000; includes two 1‑year renewal options; New roof installed October 2025
