Versatile Office/Medical Property For
For Sale
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1405 Potter Dr, Colorado Springs, CO 80909
Single-story office with medical conversion potential in central location.
Property Size4,000 SF
Lot Size0.39 Acres
Price / SF$137.50
Days on Market201
Property Features for 1405 Potter Dr
General Information
Standard status
Active
Size
4,000 SF
Class
C
Lot size
0.39 Acres
Property subtype
Office
Zoning
MX_N
Investment Type
Owner/User
Building Details
Year Built
1973
Buildings
1
Stories
1
Units
1
Listing Agency:
Pikes Peak Dream Homes Realty
Listed By:
Tyson Liese · License #FA.100057487
Source:
Crexi
Added: Feb 13
Changed: Aug 21
Last Checked: Sep 2 at 5:05AM
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 Pikes Peak Dream Homes Realty
Investment Insights
Based on property information with market context.
This single-story property, situated on a 0.39-acre parcel, offers a functional and flexible 4,000 square foot layout suitable for general office use, with strong potential for medical or healthcare conversion. Zoned MX-N, the building supports a variety of professional, office, and medical uses. The existing floor plan includes private offices and open work areas. Dedicated parking is available. The property is currently vacant and available for immediate occupancy, allowing a new owner to tailor improvements to meet specific operational needs. Its central location near Academy Blvd and Platte Ave provides convenient access to surrounding residential neighborhoods and major traffic corridors. With neighboring professional and healthcare uses in the immediate area, this property presents an attractive opportunity for medical, dental, therapy, or professional service users seeking an affordable central footprint. It is well suited for owner-users seeking long-term occupancy control or investors pursuing repositioning opportunities.
Key Highlights
- Ideal for medical/healthcare conversion or general office use due to MX‑N zoning and existing layout
- Vacant and available for immediate occupancy, allowing for customized improvements
- Central location near Academy Blvd and Platte Ave provides convenient access to major traffic corridors and residential areas
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
$45,043
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
8.19%
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%
$900,860
$900.9K
Cap Rate 7%
$643,471
$643.5K
Cap Rate 9%
$500,478
$500.5K
Market Conditions
NOI Build-Up for 4,000 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
$81.6K $20.40/SF
− Vacancy
−$6.5K −$1.63/SF
EGI
$75.1K $18.77/SF
− OpEx
−$30.0K −$7.51/SF
NOI
$45.0K $11.26/SF
Area
Colorado Springs, CO
Vacancy
8.00%
Lease Rate
$20.40 /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%
$900,860
Cap Rate 7%
$643,471
Cap Rate 9%
$500,478
Alternative Uses
Best Use
Healthcare Medical
$643.5K
$563.0K – $750.7K
NOI $45,043 @ 7.0% cap · market cap 8.19%
Second Best
Office B
$562.5K
$492.2K – $656.3K
NOI $39,375 @ 7.0% cap · market cap 7.16%
Theoretical Best
Specialty Retail
$789.9K
$691.2K – $921.6K
NOI $55,296 @ 7.0% cap · market cap 10.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,018
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80909, CO
37,302
Population
16,572
Households
2.3
Avg Household Size
38
Median Age
28%
College-Educated
92%
High-School Grad
7.9 sq mi
ZIP Area
4,722
Density / Sq Mi
$61,777
Median Household Income
$36,894
Median Earnings
$1,227
Median Rent
$352,400
Median Home Value
Market
Vacancy Rate% for Office in Colorado Springs, CO
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Hamlett Spay & Neuter Clinic — 3660 Citadel Dr N, Colorado Springs, CO 80909
- Total Care Mobile Veterinary Practice, LLC — 1304 N Academy Blvd #108, Colorado Springs, CO 80909
Frequently Asked Questions
What type of property is this?
Medical Office Space - Single-story office with medical conversion potential in central location.
Where is this medical office space located?
The property is located at 1405 Potter Dr Colorado Springs, CO.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Ideal for medical/healthcare conversion or general office use due to MX‑N zoning and existing layout; Vacant and available for immediate occupancy, allowing for customized improvements; Central location near Academy Blvd and Platte Ave provides convenient access to major traffic corridors and residential areas
