Freestanding Office NNN
For Sale
$1,318,000
215 Markham Center Dr, Little Rock, AR 72205
Fully occupied office building leased on a new 10-year NNN term with 2% annual escalations.
Property Size4,505 SF
Price / SF$292.56
Days on Market50
Property Features for 215 Markham Center Dr
General Information
Standard status
Active
Size
4,505 SF
Property subtype
Single-Tenant Office Medical
Occupancy
100%
Lease Type
NN
Amenities
10 Year Lease Featuring 2% Annual Rental Increases throughout the Initial Term & Options. Cardinal Health has Occupied the Facility since 1994, Signifying Dedication to the Property for over 30 Years.
The Area Enjoys the Densest Daytime Population in the State thanks to four Hospitals, more than 1 Million Sq.ft. of Retail and more than 500k Sq.ft. of Medical Office Space all within 4 miles.
Investment-Grade Tenant and Exceptional Credit & Corporate Stature - Cardinal Health (NYSE: CAH), a Fortune 500 company generating $223 billion in revenue, holds investment-grade BBB credit ratings.
Epicenter of Arkansas's Premier Medical District - Strategically Positioned within the 72205 Zip Code, the Single Most Hospital-Dense Zip Code in Arkansas, Placing the Property at the Heart of the State's Dominant Healthcare Ecosystem and Referral Network.
Approximately 2.6 Miles from UAMS - Arkansas's Only Academic Health Sciences University and Largest Public Employer. UAMS Employs over 12,000 People and Generates Several Billion Dollars in Annual Statewide Economic Impact.
Down the Street from Baptist Health Medical Center - Little Rock's Largest Private, Not-for-Profit, Faith-Based Hospital, Operating 827 Licensed Beds, and Serving as the Flagship of the Baptist Health System with a Level II Trauma Center.
Minutes from CHI St. Vincent Infirmary Medical Center - a 600-Bed, 6,000+ Employees Acute-Care Hospital and Facility dedicated in High Quality, Compassionate Care Serving the Health Care needs of Arkansans, including Patients from all 75 Counties.
On-Corridor with the Central Arkansas Veterans Healthcare System - One of the Country's Largest and Busiest VA Medical Centers, CAVHS Operates Two Main Hospitals and Supports over 1,500 Students and Residents across 65 Educational Programs. Densely Populated and Affluent Area: Features an Average Household Income of $100k+ within a 3-Mile Radius and over 134k People Residing within a 5-Mile Radius. Metro Little Rock Total Employment Exceeds 385k with Continued Job Growth Projected.
Building Details
Building Size
4,505 SF
Tenancy
Single
Listing Agency:
Marcus & Millichap | San Diego
Listed By:
Alvin Mansour · License #License(s): CA: 01391653, TX: 0606255
(858) 373-3184
Source:
Marcusmillichap
Added: Jul 18
Changed: Sep 3
Last Checked: Sep 5 at 3:58AM
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 Marcus & Millichap | San Diego
Investment Insights
Based on property information with market context.
Colliers Arkansas is pleased to offer investors the opportunity to acquire 215 Markham Center Drive, a fully occupied office building leased to Cardinal Health. The property is under a newly extended 10-year NNN lease with 2% annual rental escalations. Cardinal Health has occupied the facility since 1994, reflecting long-standing tenancy.
As part of the tenant’s renewal, the current ownership group has provided a six-figure tenant improvement allowance. The combination of a long-term, credit tenant and a recently extended lease structure supports the property’s focus on durable income.
The offering is presented as a turn-key, income-producing asset with Cardinal Health continuing as the sole occupant under the NNN lease terms described above.
As part of the tenant’s renewal, the current ownership group has provided a six-figure tenant improvement allowance. The combination of a long-term, credit tenant and a recently extended lease structure supports the property’s focus on durable income.
The offering is presented as a turn-key, income-producing asset with Cardinal Health continuing as the sole occupant under the NNN lease terms described above.
Key Highlights
- Office building built in 1994 and fully occupied by Cardinal Health
- New 10‑year NNN lease executed with Cardinal Health
- Lease includes 2% annual rental escalations
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
$42,893
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
3.25%
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%
$857,860
$857.9K
Cap Rate 7%
$612,757
$612.8K
Cap Rate 9%
$476,589
$476.6K
Market Conditions
NOI Build-Up for 4,505 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
$64.3K $14.28/SF
− Vacancy
−$7.1K −$1.59/SF
EGI
$57.2K $12.69/SF
− OpEx
−$14.3K −$3.17/SF
NOI
$42.9K $9.52/SF
Area
Little Rock, AR
Vacancy
11.10%
Lease Rate
$14.28 /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%
$857,860
Cap Rate 7%
$612,757
Cap Rate 9%
$476,589
Alternative Uses
Best Use
Office B
$612.8K
$536.2K – $714.9K
NOI $42,893 @ 7.0% cap · market cap 3.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$818.4K
$716.1K – $954.8K
NOI $57,287 @ 7.0% cap · market cap 4.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,778
Businesses Nearby
Explore this area
Business Placement
Demographics for 72205, AR
22,888
Population
12,187
Households
1.9
Avg Household Size
39
Median Age
54%
College-Educated
96%
High-School Grad
8.0 sq mi
ZIP Area
2,861
Density / Sq Mi
$62,888
Median Household Income
$50,948
Median Earnings
$1,110
Median Rent
$204,400
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?
Office building - Fully occupied office building leased on a new 10-year NNN term with 2% annual escalations.
Where is this office building located?
The property is located at 215 Markham Center Dr Little Rock, AR.
What is the asking price?
The asking price for this property is $1,318,000.
What are key features of this property?
This property features: Office building built in 1994 and fully occupied by Cardinal Health; New 10‑year NNN lease executed with Cardinal Health; Lease includes 2% annual rental escalations
