Hospital-Adjacent Office
For Sale
$3,030,323
5408 Flanders Dr, Baton Rouge, LA 70808
Established office property built in 1984 for continued commercial use.
Property Size9,394 SF
Price / SF$322.58
Days on Market120
Property Features for 5408 Flanders Dr
General Information
Standard status
Active
Size
9,394 SF
Property subtype
Office Medical
Occupancy
100%
Additional Details
Cap Rate
7.75%
Amenities
Triple Net Lease Structure Allows for Passive Ownership
Growing Practice with Strong Presence and Backing by Compass Group Equity Partners- Spine Diagnostic & Pain Treatment Center Acquired by Resolve Pain Solutions in 2026
5-Year Lease Executed May 2024- Features Attractive CPI Increase During Renewal Option
Baton Rouge Serves as Regional Spine Patient Referral Hub- Home of The Spine Hospital of Louisiana Patients Travel to Baton Rouge for Complex Spine and Neurological Treatment
Surrounded by Synergistic Medical Tenants- Growing Area With High Demand for Medical Office Space
Significant Historical Occupancy- Spine Diagnostic & Pain Treatment Center has Been in the Market for 23+ Years
Proximity to Major Hospital- Located In the Major Medical Parkway with Minimal Vacancy 0.28 Mile(s) from Our Lady of the Lake Regional Medical Center Our Lady of the Lake Regional Medical Center is One of the 25 Largest Hospitals ? 900+ Licensed Bed Hospital ? The Area's Only Level 1 Trauma Center ? 650+ Provider Care Network Covering More Than 40 Specialties
Building Details
Building Size
9,394 SF
Year Built
1984
Listed By:
Gio Figueiredo · License #License(s): FL: SL3469013
(407) 557-3859
Source:
Marcusmillichap
Added: May 20
Changed: Sep 8
Last Checked: Sep 15 at 4:42AM
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 Gio Figueiredo
Investment Insights
Based on property information with market context.
This office building at 5408 Flanders Dr in Baton Rouge, Louisiana, contains 9,394 square feet and was constructed in 1984. Its setting immediately beside a hospital adds a clearly defined institutional context to the property.
The asset is offered for sale and carries a stated 7.75% CAP. The property’s office classification and existing building improvements provide a straightforward profile for parties evaluating an established commercial asset at this address.
The asset is offered for sale and carries a stated 7.75% CAP. The property’s office classification and existing building improvements provide a straightforward profile for parties evaluating an established commercial asset at this address.
Key Highlights
- 9,394‑square‑foot office building
- Built in 1984
- Adjacent to a hospital
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
$89,851
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
2.97%
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%
$1,797,020
$1.8M
Cap Rate 7%
$1,283,586
$1.3M
Cap Rate 9%
$998,344
$998.3K
Market Conditions
NOI Build-Up for 9,394 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
$122.9K $13.08/SF
− Vacancy
−$3.1K −$0.33/SF
EGI
$119.8K $12.75/SF
− OpEx
−$30.0K −$3.19/SF
NOI
$89.9K $9.56/SF
Area
Baton Rouge, LA
Vacancy
2.50%
Lease Rate
$13.08 /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%
$1,797,020
Cap Rate 7%
$1,283,586
Cap Rate 9%
$998,344
Alternative Uses
Best Use
Office B
$1.28M
$1.12M – $1.50M
NOI $89,851 @ 7.0% cap · market cap 2.97%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.25M
$1.97M – $2.62M
NOI $157,484 @ 7.0% cap · market cap 5.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,784
Businesses Nearby
Explore this area
Business Placement
Demographics for 70808, LA
32,510
Population
18,833
Households
1.7
Avg Household Size
35
Median Age
65%
College-Educated
97%
High-School Grad
12.0 sq mi
ZIP Area
2,709
Density / Sq Mi
$69,078
Median Household Income
$41,162
Median Earnings
$1,283
Median Rent
$392,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South 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?
Office building - Established office property built in 1984 for continued commercial use.
Where is this office building located?
The property is located at 5408 Flanders Dr Baton Rouge, LA.
What is the asking price?
The asking price for this property is $3,030,323.
What are key features of this property?
This property features: 9,394‑square‑foot office building; Built in 1984; Adjacent to a hospital
