Medical Office Building Near
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19701 Kingwood Drive Building 6, Kingwood, TX 77339
Single-tenant medical office building near HCA Houston Healthcare Kingwood.
Property Size4,800 SF
Lot Size0.66 Acres
Price / SF$357.14
Days on Market175
Property Features for 19701 Kingwood Drive Building 6
General Information
Standard status
Active
Size
4,800 SF
Lot size
0.66 Acres
Property subtype
Office
Occupancy
100%
Building Details
Year Built
2009
Stories
1
Units
1
Tenancy
Single
Listing Agency:
CBRE - Houston Galleria
Listed By:
Behr Bruce · License #TX 752877
Source:
Crexi
Added: Mar 2
Changed: Aug 8
Last Checked: Aug 23 at 10:23AM
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 CBRE - Houston Galleria
Investment Insights
Based on property information with market context.
This is a 4,800 square foot single-tenant medical office building constructed in 2009, situated on a 0.66-acre lot. The property is fully occupied by DermSurgery Associates, who recently renewed their lease for a new 5-year term after completing a previous 10-year lease. The tenant is investing $50,000 in tenant improvements, which includes a new HVAC system and enhanced signage. The property is located adjacent to HCA Houston Healthcare Kingwood, a 451-bed acute care hospital that serves as the primary healthcare anchor for Northeast Houston. This on-campus location supports stable demand and long-term occupancy in the growing Northeast submarket.
Key Highlights
- Prime adjacency to HCA Houston Healthcare Kingwood (451‑bed acute care hospital).
- Tenant recently renewed lease for a new 5‑year term.
- Tenant investing $50,000 in tenant improvements (new HVAC and enhanced signage).
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
$65,318
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
3.81%
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%
$1,306,360
$1.3M
Cap Rate 7%
$933,114
$933.1K
Cap Rate 9%
$725,756
$725.8K
Market Conditions
NOI Build-Up for 4,800 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
$121.0K $25.20/SF
− Vacancy
−$12.1K −$2.52/SF
EGI
$108.9K $22.68/SF
− OpEx
−$43.5K −$9.07/SF
NOI
$65.3K $13.61/SF
Area
Houston, TX
Vacancy
10.00%
Lease Rate
$25.20 /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%
$1,306,360
Cap Rate 7%
$933,114
Cap Rate 9%
$725,756
Alternative Uses
Best Use
Healthcare Medical
$933.1K
$816.5K – $1.09M
NOI $65,318 @ 7.0% cap · market cap 3.81%
Second Best
Office B
$799.8K
$699.8K – $933.1K
NOI $55,987 @ 7.0% cap · market cap 3.27%
Theoretical Best
Office A
$1.23M
$1.08M – $1.44M
NOI $86,400 @ 7.0% cap · market cap 5.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
119
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77339, TX
43,076
Population
19,104
Households
2.3
Avg Household Size
38
Median Age
39%
College-Educated
95%
High-School Grad
16.1 sq mi
ZIP Area
2,676
Density / Sq Mi
$84,015
Median Household Income
$50,105
Median Earnings
$1,605
Median Rent
$274,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Single-tenant medical office building near HCA Houston Healthcare Kingwood.
Where is this medical office space located?
The property is located at 19701 Kingwood Drive Building 6 Kingwood, TX.
What is the asking price?
The asking price for this property is $1,714,285.
What are key features of this property?
This property features: Prime adjacency to HCA Houston Healthcare Kingwood (451‑bed acute care hospital).; Tenant recently renewed lease for a new 5‑year term.; Tenant investing $50,000 in tenant improvements (new HVAC and enhanced signage).
