Office Building with
For Sale
$4,300,000
3940 Arctic Boulevard, Anchorage, AK 99503
The property offers basement storage, janitorial service, and accessible elevator access.
Property Size30,240 SF
Price / SF$142.20
Days on Market617
Property Features for 3940 Arctic Boulevard
General Information
Standard status
Active
Size
30,240 SF
Elevators
Yes
Property subtype
General Commercial
Amenities
basement storage
janitorial service
UV solar film
3
60 Parking Spaces.
City
Building Details
Year Built
1984
Buildings
1
Stories
3
Listing Agency:
Berkshire Hathaway HomeServices Alaska Realty
(907) 242-7603
Listed By:
Lottie Michael · License #2519
(907) 242-7603
Source:
Xome
Added: Dec 23, 2024
Changed: Aug 31
Last Checked: Aug 31 at 3:28PM
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 Berkshire Hathaway HomeServices Alaska Realty
Investment Insights
Based on property information with market context.
Located at 3940 Arctic Boulevard in Anchorage, this 30,240-square-foot office property contains three stories and a full basement designated for storage. An elevator provides access within the building, and the property is ADA compliant. Janitorial service is included as part of the full-service offering.
Built in 1984, the building provides 60 parking spaces. The windows feature newly applied UV solar film, adding a documented improvement to the existing office improvements.
Built in 1984, the building provides 60 parking spaces. The windows feature newly applied UV solar film, adding a documented improvement to the existing office improvements.
Key Highlights
- 30,240‑square‑foot office building at 3940 Arctic Boulevard, Anchorage, AK 99503
- Three‑story configuration with a full basement for storage
- ADA compliant with elevator access
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
$371,498
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
8.64%
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%
$7,429,960
$7.4M
Cap Rate 7%
$5,307,114
$5.3M
Cap Rate 9%
$4,127,756
$4.1M
Market Conditions
NOI Build-Up for 30,240 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
$635.0K $21.00/SF
− Vacancy
−$139.7K −$4.62/SF
EGI
$495.3K $16.38/SF
− OpEx
−$123.8K −$4.10/SF
NOI
$371.5K $12.29/SF
Area
Anchorage, AK
Vacancy
22.00%
Lease Rate
$21.00 /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%
$7,429,960
Cap Rate 7%
$5,307,114
Cap Rate 9%
$4,127,756
Alternative Uses
Best Use
Office B
$5.31M
$4.64M – $6.19M
NOI $371,498 @ 7.0% cap · market cap 8.64%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$8.21M
$7.19M – $9.58M
NOI $574,802 @ 7.0% cap · market cap 13.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 99503, AK
13,550
Population
7,411
Households
1.8
Avg Household Size
36
Median Age
30%
College-Educated
91%
High-School Grad
20.7 sq mi
ZIP Area
655
Density / Sq Mi
$76,888
Median Household Income
$46,734
Median Earnings
$1,185
Median Rent
$316,700
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?
Office building - The property offers basement storage, janitorial service, and accessible elevator access.
Where is this office building located?
The property is located at 3940 Arctic Boulevard Anchorage, AK.
What is the asking price?
The asking price for this property is $4,300,000.
What are key features of this property?
This property features: 30,240‑square‑foot office building at 3940 Arctic Boulevard, Anchorage, AK 99503; Three‑story configuration with a full basement for storage; ADA compliant with elevator access
