Medical Office Building
For Sale
Contact for pricing
18-20 North St, Hanover, PA
Tenant-designed medical office building with stable income streams.
Property Size9,194 SF
Lot Size0.63 Acres
Price / SF$240.92
Days on Market1483
Property Features for 18-20 North St
General Information
Standard status
Active
Size
9,194 SF
Lot size
0.63 Acres
Property subtype
OFFICE
Listing Agency:
JDS Real Estate Services
(213) 446-5366
Listed By:
Jennifer Stein · License #01507135
(231) 446-5366
Source:
Moodyscre
Added: Aug 31, 2022
Changed: Sep 12
Last Checked: Sep 20 at 12:07PM
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 JDS Real Estate Services
Investment Insights
Based on property information with market context.
Located in Hanover, Pennsylvania, 18-20 North Street is a commercial medical office building featuring 9,194 square feet across two stories and a basement. The property has been recently renovated to meet the needs of its tenant, UPMC (University of Pittsburgh Medical Center). The property generates an annual income of $146,828 on a triple net basis. A rental increase is scheduled for August 2026, during the final year of the current lease. The tenant has two, two-year options to renew. UPMC, an international healthcare provider with locations in Pennsylvania, Maryland, New York, Italy, and Ireland, is the anchor tenant. UPMC operates more than 40 hospitals and 800 doctors' offices and outpatient centers worldwide. The property is located a half-mile from UPMC - Hanover Hospital. Hanover is known as the snack capital of the Northeast due to its snack food industry, including companies like UTZ and Lance. The location in the city center of Hanover caters to a population of 62,129 residents within a five-mile radius.
Key Highlights
- Leased to UPMC, a globally recognized healthcare provider
- $146,828 annual income on a triple net lease basis makes this an attractive investment opportunity
- Rental increase scheduled for August 2026
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
$146,580
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
6.62%
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%
$2,931,600
$2.9M
Cap Rate 7%
$2,094,000
$2.1M
Cap Rate 9%
$1,628,667
$1.6M
Market Conditions
NOI Build-Up for 9,194 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
$201.9K $21.96/SF
− Vacancy
−$6.5K −$0.70/SF
EGI
$195.4K $21.26/SF
− OpEx
−$48.9K −$5.31/SF
NOI
$146.6K $15.94/SF
Area
York County, PA
Vacancy
3.20%
Lease Rate
$21.96 /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%
$2,931,600
Cap Rate 7%
$2,094,000
Cap Rate 9%
$1,628,667
Alternative Uses
Best Use
Office B
$2.09M
$1.83M – $2.44M
NOI $146,580 @ 7.0% cap · market cap 6.62%
Second Best
Healthcare Medical
$651.7K
$570.2K – $760.3K
NOI $45,618 @ 7.0% cap · market cap 2.06%
Theoretical Best
Office A
$2.66M
$2.33M – $3.11M
NOI $186,339 @ 7.0% cap · market cap 8.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,579
Businesses Nearby
Under-served
Demand for This Use
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Tenant-designed medical office building with stable income streams.
Where is this medical office space located?
The property is located at 18-20 North St Hanover, PA.
What is the asking price?
The asking price for this property is $2,215,000.
What are key features of this property?
This property features: Leased to UPMC, a globally recognized healthcare provider; $146,828 annual income on a triple net lease basis makes this an attractive investment opportunity; Rental increase scheduled for August 2026
