Specialty Medical Office
For Sale
$199,000
16275 Monterey Road Suite E, Morgan Hill, CA 95037
Established healthcare practice offering lymphedema care, compression services, prosthesis fitting, and oncology support from a medical office.
Property Size350 SF
Price / SF$568.57
Days on Market9
Property Features for 16275 Monterey Road Suite E
General Information
Standard status
Active
Size
350 SF
Property subtype
Commercial/Industrial
Additional Details
Furnished
Yes
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$4,135
Listing Agency:
GenX Realty, Inc.
(408) 644-5870
Listed By:
Tito Gonzalez · License #01424198
(408) 644-5870
Source:
Exitrealty
Added: Aug 2
Changed: Aug 9
Last Checked: Aug 9 at 7:49AM
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 GenX Realty, Inc.
Investment Insights
Based on property information with market context.
This established specialty healthcare practice operates from a medical office at 16275 Monterey Road, Suite E, in Morgan Hill. Its services include lymphedema treatment, compression garment fitting, mastectomy products, prosthesis fitting, therapy supplies, patient education, and cancer care support. The practice has served the South Bay for approximately 36 years.
The sale includes the business name, goodwill, furniture, fixtures, equipment, inventory, vendor relationships, and patient measurement and order history. The existing lease may be assumed with landlord approval. Operations use a hybrid payment model that combines direct patient payments with superbills and an established Kaiser reimbursement process supported by dedicated accounts receivable management.
The sale includes the business name, goodwill, furniture, fixtures, equipment, inventory, vendor relationships, and patient measurement and order history. The existing lease may be assumed with landlord approval. Operations use a hybrid payment model that combines direct patient payments with superbills and an established Kaiser reimbursement process supported by dedicated accounts receivable management.
Key Highlights
- Approximately 36 years serving the South Bay
- Lymphedema treatment and compression garment fitting services
- Mastectomy products and prosthesis fitting
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
$12,313
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
6.19%
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%
$246,260
$246.3K
Cap Rate 7%
$175,900
$175.9K
Cap Rate 9%
$136,811
$136.8K
Market Conditions
NOI Build-Up for 350 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
$19.6K $56.04/SF
− Vacancy
−$3.2K −$9.13/SF
EGI
$16.4K $46.91/SF
− OpEx
−$4.1K −$11.73/SF
NOI
$12.3K $35.18/SF
Area
Santa Clara County, CA
Vacancy
16.30%
Lease Rate
$56.04 /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%
$246,260
Cap Rate 7%
$175,900
Cap Rate 9%
$136,811
Alternative Uses
Best Use
Office B
$175.9K
$153.9K – $205.2K
NOI $12,313 @ 7.0% cap · market cap 6.19%
Second Best
Healthcare Medical
$93.7K
$82.0K – $109.4K
NOI $6,562 @ 7.0% cap · market cap 3.30%
Theoretical Best
Office A
$211.3K
$184.9K – $246.5K
NOI $14,791 @ 7.0% cap · market cap 7.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,368
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 95037, CA
53,126
Population
17,185
Households
3.1
Avg Household Size
41
Median Age
44%
College-Educated
90%
High-School Grad
120.1 sq mi
ZIP Area
442
Density / Sq Mi
$158,256
Median Household Income
$71,130
Median Earnings
$2,242
Median Rent
$1,152,400
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 - Established healthcare practice offering lymphedema care, compression services, prosthesis fitting, and oncology support from a medical office.
Where is this medical office space located?
The property is located at 16275 Monterey Road Suite E Morgan Hill, CA.
What is the asking price?
The asking price for this property is $199,000.
What are key features of this property?
This property features: Approximately 36 years serving the South Bay; Lymphedema treatment and compression garment fitting services; Mastectomy products and prosthesis fitting
