Medical Office Building in
For Sale
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16663 Midland Dr, Shawnee, KS 66217
Two-tenant medical office building in Johnson County, Kansas.
Property Size6,772 SF
Lot Size0.61 Acres
Price / SF$280.57
Days on Market566
Property Features for 16663 Midland Dr
General Information
Standard status
Active
Size
6,772 SF
Class
B
Lot size
0.61 Acres
Property subtype
Office
Zoning
PUDOC (Planned Unit Development Office Commercial)
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$156,630
Building Details
Year Built
1997
Year Renovated
2018
Buildings
1
Stories
1
Units
2
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Kansas City
(816) 410-1010
Listed By:
Daniel Greenamyre · License #KS SP00236311
Source:
Crexi
Added: Jan 30, 2025
Changed: Aug 17
Last Checked: Aug 19 at 2:20AM
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 Marcus & Millichap - Kansas City
Investment Insights
Based on property information with market context.
The property is a 6,772 square foot medical office building situated on a 0.61-acre plot within the WestGlen shopping center, along the Shawnee/Lenexa corridor of Johnson County, Kansas. The building is 100% occupied by two tenants. Amsurg, an ambulatory surgery company acquired by Ascension in June 2025, occupies 70% of the gross leasable area (GLA) and has been a tenant since the property's construction in 1998. LiveWell, specializing in home-based care, occupies the remaining 30% and signed a new lease in January 2025. The property is located 1.5 miles from the Lenexa City Center, a 69-acre mixed-use development. Lease terms include a triple-net lease for Amsurg and a gross lease for LiveWell, with the landlord responsible for roof and structure maintenance. The building is located in Johnson County, Kansas, where the average household income is $142,699.
Key Highlights
- 100% occupied medical office building with two strong tenants.
- Located in affluent Johnson County, Kansas, the wealthiest county in the state.
- Anchored by Amsurg, a multibillion‑dollar ambulatory surgery company.
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
$93,382
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
4.91%
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%
$1,867,640
$1.9M
Cap Rate 7%
$1,334,029
$1.3M
Cap Rate 9%
$1,037,578
$1.0M
Market Conditions
NOI Build-Up for 6,772 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
$156.0K $23.04/SF
− Vacancy
−$31.5K −$4.65/SF
EGI
$124.5K $18.39/SF
− OpEx
−$31.1K −$4.60/SF
NOI
$93.4K $13.79/SF
Area
Johnson County, KS
Vacancy
20.20%
Lease Rate
$23.04 /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%
$1,867,640
Cap Rate 7%
$1,334,029
Cap Rate 9%
$1,037,578
Alternative Uses
Best Use
Office B
$1.33M
$1.17M – $1.56M
NOI $93,382 @ 7.0% cap · market cap 4.91%
Second Best
Healthcare Medical
$1.25M
$1.10M – $1.46M
NOI $87,625 @ 7.0% cap · market cap 4.61%
Theoretical Best
Office A
$1.64M
$1.43M – $1.91M
NOI $114,727 @ 7.0% cap · market cap 6.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
404
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 66217, KS
5,398
Population
2,820
Households
1.9
Avg Household Size
46
Median Age
60%
College-Educated
98%
High-School Grad
7.5 sq mi
ZIP Area
720
Density / Sq Mi
$90,116
Median Household Income
$55,561
Median Earnings
$1,300
Median Rent
$404,400
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-tenant medical office building in Johnson County, Kansas.
Where is this medical office space located?
The property is located at 16663 Midland Dr Shawnee, KS.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: 100% occupied medical office building with two strong tenants.; Located in affluent Johnson County, Kansas, the wealthiest county in the state.; Anchored by Amsurg, a multibillion‑dollar ambulatory surgery company.
