Listing Agency: Real of Pennsylvania c***@gmail.com Show Phone

Listed By: Colin Striefsky · License #RS346771 Show Phone

Source: Exprealty

Added: May 17 Changed: Aug 25 Last Checked: Aug 28 at 1:12PM

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Investment Insights

Based on property information with market context.

This property features 6,000 sq ft of office space. Currently configured as a physician's office, the space includes 5 exam rooms and multiple private offices. The layout is functional and versatile, making it suitable for medical, professional, or service-based businesses. An additional 3,000 sq ft of adjoining space is available, offering potential for expansion, a second business, or customized build-out.

Key Highlights

• Expansive 3,000 sq ft of prime office space.
• Currently configured as a physician's office with 5 exam rooms and multiple private offices.
• Functional and versatile layout** ideal for medical, professional, or service‑based use.

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

$77,104

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

7.79%

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%

$1,542,080 $1.5M

Cap Rate 7%

$1,101,486 $1.1M

Cap Rate 9%

$856,711 $856.7K

Market Conditions

NOI Build-Up for 6,000 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

$120.2K $20.04/SF

− Vacancy

−$17.4K −$2.91/SF

EGI

$102.8K $17.13/SF

− OpEx

−$25.7K −$4.28/SF

NOI

$77.1K $12.85/SF

Area

Lackawanna County, PA

Vacancy

14.50%

Lease Rate

$20.04 /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%

$1,542,080

Cap Rate 7%

$1,101,486

Cap Rate 9%

$856,711

Alternative Uses

Best Use

Office B

$1.10M

$963.8K – $1.29M (±1% cap)

NOI $77,104 @ 7.0% cap · market cap 7.79%

Second Best

Healthcare Medical

$1.01M

$884.4K – $1.18M (±1% cap)

NOI $70,755 @ 7.0% cap · market cap 7.15%

Theoretical Best

Office A

$1.52M

$1.33M – $1.78M (±1% cap)

NOI $106,604 @ 7.0% cap · market cap 10.77%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Tomcykoski Paul A MD Pediatrician

Suggested Use

Top Pick Parking Lot & Garage Butcher Real Estate Agency Daycare Center Tech Support Center Food Market

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

51

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Market

Vacancy Rate% for Office in Northeast region

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this medical office space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Medical Office Space - 6,000 sq ft office space ideal for medical or professional.

Where is this medical office space located?

The property is located at 1355 Veterans Memorial Dr Jessup, PA.

What is the asking price?

The asking price for this property is $990,000.

What are key features of this property?

This property features: Expansive 3,000 sq ft of prime office space.; Currently configured as a physician's office with **5 exam rooms and multiple private offices**.; Functional and versatile layout** ideal for medical, professional, or service‑based use.