Medical Office Building with
For Sale
$985,000
18747 N Reems Rd Bldg E, Surprise, AZ 85374
Two existing occupants support flexible owner-user or investment strategies within a professional medical complex.
Property Size2,512 SF
Price / SF$392.12
Days on Market109
Property Features for 18747 N Reems Rd Bldg E
General Information
Standard status
Active
Size
2,512 SF
Class
B
Property subtype
Office
Building Details
Building Size
2,512 SF
Year Built
2005
Buildings
1
Tenancy
Multi
Listing Agency:
Commercial Properties Inc.
(602) 809-6570
Listed By:
Eric Butler · License #AZ #BR515583000
(602) 809-6570
Source:
Cpiaz
Added: May 14
Changed: Aug 29
Last Checked: Aug 29 at 1:40PM
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 Commercial Properties Inc.
Investment Insights
Based on property information with market context.
Built in 2005, this ±2,512 SF medical office property is positioned within the Surprise Medical & Professional complex. The building includes available building and monument signage, supporting identification within the professional setting.
Two tenants currently occupy the property under expired leases and have expressed willingness to renew. That existing occupancy supports either continued leasing or a future owner-user plan. The property is located near Banner Del E. Webb Medical Center in Surprise, Arizona, providing a medical-oriented setting for office use.
Two tenants currently occupy the property under expired leases and have expressed willingness to renew. That existing occupancy supports either continued leasing or a future owner-user plan. The property is located near Banner Del E. Webb Medical Center in Surprise, Arizona, providing a medical-oriented setting for office use.
Key Highlights
- ±2,512 SF medical and office building
- Located within the Surprise Medical & Professional complex
- Two tenants occupy the property under expired leases and are willing to renew
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
$36,209
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
3.68%
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%
$724,180
$724.2K
Cap Rate 7%
$517,271
$517.3K
Cap Rate 9%
$402,322
$402.3K
Market Conditions
NOI Build-Up for 2,512 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
$66.3K $26.40/SF
− Vacancy
−$18.0K −$7.18/SF
EGI
$48.3K $19.22/SF
− OpEx
−$12.1K −$4.80/SF
NOI
$36.2K $14.41/SF
Area
Surprise, AZ
Vacancy
27.20%
Lease Rate
$26.40 /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%
$724,180
Cap Rate 7%
$517,271
Cap Rate 9%
$402,322
Alternative Uses
Best Use
Office B
$517.3K
$452.6K – $603.5K
NOI $36,209 @ 7.0% cap · market cap 3.68%
Second Best
Healthcare Medical
$485.6K
$424.9K – $566.6K
NOI $33,993 @ 7.0% cap · market cap 3.45%
Theoretical Best
Office A
$774.7K
$677.8K – $903.8K
NOI $54,227 @ 7.0% cap · market cap 5.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,404
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85374, AZ
41,182
Population
21,982
Households
1.9
Avg Household Size
61
Median Age
30%
College-Educated
95%
High-School Grad
12.8 sq mi
ZIP Area
3,217
Density / Sq Mi
$78,690
Median Household Income
$45,427
Median Earnings
$1,897
Median Rent
$355,800
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 - Two existing occupants support flexible owner-user or investment strategies within a professional medical complex.
Where is this medical office space located?
The property is located at 18747 N Reems Rd Bldg E Surprise, AZ.
What is the asking price?
The asking price for this property is $985,000.
What are key features of this property?
This property features: ±2,512 SF medical and office building; Located within the Surprise Medical & Professional complex; Two tenants occupy the property under expired leases and are willing to renew
