Medical Office Business
For Sale
$2,400,000
Stillwater Drive, Prescott, AZ 86305
Two Class A office buildings offer well-improved medical and professional space with ample on-site parking.
Property Size8,392 SF
Lot Size0.76 Acres
Price / SF$285.99
Days on Market508
Property Features for Stillwater Drive
General Information
Standard status
Active
Size
8,392 SF
Class
A
Total Parking Spaces
43
Lot size
0.76 Acres
Property subtype
Office
Occupancy
100%
Taxes and HOA fees
Annual Taxes
$14,711
Amenities
Central Air, Heat Pump
3
43 Parking Spaces. Paved Driveway, On Site.
Building Details
Year Built
2008
Listed By:
Invest Southwest
(928) 899-3111
Source:
Xome
Added: Apr 19, 2025
Changed: Sep 2
Last Checked: Sep 8 at 3:42AM
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 Invest Southwest
Investment Insights
Based on property information with market context.
This medical and professional office property within the Crossings at Willow Creek Business Park includes two Class A buildings totaling approximately 8,274 square feet. The buildings are described as well designed and highly improved, with landscaped grounds and a total of approximately 43 parking spaces.
The property is presented as 100% occupied and configured to support medical and professional tenant needs, with plentiful on-site parking for patients and visitors. It is positioned within the business park setting at 3130–3140 Stillwater Drive in Prescott, Arizona.
As an offering, the buildings and site improvements are intended to deliver an orderly, turn-key office environment for medical or professional users, while also supporting investment ownership given the stated occupancy.
The property is presented as 100% occupied and configured to support medical and professional tenant needs, with plentiful on-site parking for patients and visitors. It is positioned within the business park setting at 3130–3140 Stillwater Drive in Prescott, Arizona.
As an offering, the buildings and site improvements are intended to deliver an orderly, turn-key office environment for medical or professional users, while also supporting investment ownership given the stated occupancy.
Key Highlights
- Two Class A office buildings totaling +/- 8,274 SF on +/- 0.76 acres
- 43 paved parking spaces with ample on‑site parking for medical and professional uses
- 100% occupied property with designed, improved space for tenants and their clientele
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
$136,718
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
5.70%
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%
$2,734,360
$2.7M
Cap Rate 7%
$1,953,114
$2.0M
Cap Rate 9%
$1,519,089
$1.5M
Market Conditions
NOI Build-Up for 8,392 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
$243.7K $29.04/SF
− Vacancy
−$15.8K −$1.89/SF
EGI
$227.9K $27.15/SF
− OpEx
−$91.1K −$10.86/SF
NOI
$136.7K $16.29/SF
Area
Yavapai County, AZ
Vacancy
6.50%
Lease Rate
$29.04 /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%
$2,734,360
Cap Rate 7%
$1,953,114
Cap Rate 9%
$1,519,089
Alternative Uses
Best Use
Healthcare Medical
$1.95M
$1.71M – $2.28M
NOI $136,718 @ 7.0% cap · market cap 5.70%
Second Best
Office B
$1.74M
$1.53M – $2.03M
NOI $122,055 @ 7.0% cap · market cap 5.09%
Theoretical Best
Warehouse
$2.81M
$2.46M – $3.28M
NOI $196,791 @ 7.0% cap · market cap 8.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
745
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 86305, AZ
19,555
Population
10,920
Households
1.8
Avg Household Size
62
Median Age
47%
College-Educated
97%
High-School Grad
588.5 sq mi
ZIP Area
33
Density / Sq Mi
$78,802
Median Household Income
$37,630
Median Earnings
$1,132
Median Rent
$627,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two Class A office buildings offer well-improved medical and professional space with ample on-site parking.
Where is this medical office space located?
The property is located at Stillwater Drive Prescott, AZ.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Two Class A office buildings totaling +/- 8,274 SF on +/- 0.76 acres; 43 paved parking spaces with ample on‑site parking for medical and professional uses; 100% occupied property with designed, improved space for tenants and their clientele
