Medical Office Suite in
For Sale
$256,000
1980 Hospital Drive, Tucson, AZ 85741
Third-floor doctor’s suite includes exam rooms, private offices, and waiting and reception areas with service windows.
Property Size1,280 SF
Price / SF$200
Days on Market520
Property Features for 1980 Hospital Drive
General Information
Standard status
Active
Size
1,280 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$3,619
Amenities
A/C - Zone
3
168 Parking Spaces. Parking Structure, Public.
undetermined, 0.03
Paved Road.
Building Details
Year Built
1986
Stories
3
Listing Agency:
Bowles Realty and Investments LLC
(520) 404-8989
Listed By:
Charles Bowles
(520) 404-8989
Source:
Xome
Added: Mar 9, 2025
Changed: Aug 8
Last Checked: Aug 11 at 5:22AM
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 Bowles Realty and Investments LLC
Investment Insights
Based on property information with market context.
This for-sale doctor’s suite is located on the third floor of a three-story building and is positioned as the first suite you reach when exiting the elevator. The space includes two private doctors’ offices, three exam rooms, a comfortable waiting room, and a reception area with two service windows. Additional improvements include a kitchen and a dedicated bathroom.
Access to the hospital is from the first floor, and convenient surface and garage parking is available. All showings are by appointment.
The suite offers a turnkey medical office layout designed around patient flow, with multiple exam rooms supported by reception, waiting, and private office space.
Access to the hospital is from the first floor, and convenient surface and garage parking is available. All showings are by appointment.
The suite offers a turnkey medical office layout designed around patient flow, with multiple exam rooms supported by reception, waiting, and private office space.
Key Highlights
- 1,280 SF third‑floor doctor’s suite at 1980 W Hospital Drive, Suite 300, Tucson, AZ 85741
- Includes 2 private doctor’s offices and 3 exam rooms
- Waiting room, reception area, and kitchen plus bathroom
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
$18,704
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
7.31%
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%
$374,080
$374.1K
Cap Rate 7%
$267,200
$267.2K
Cap Rate 9%
$207,822
$207.8K
Market Conditions
NOI Build-Up for 1,280 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
$27.6K $21.60/SF
− Vacancy
−$2.7K −$2.12/SF
EGI
$24.9K $19.48/SF
− OpEx
−$6.2K −$4.87/SF
NOI
$18.7K $14.61/SF
Area
Tucson, AZ
Vacancy
9.80%
Lease Rate
$21.60 /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%
$374,080
Cap Rate 7%
$267,200
Cap Rate 9%
$207,822
Alternative Uses
Best Use
Office B
$267.2K
$233.8K – $311.7K
NOI $18,704 @ 7.0% cap · market cap 7.31%
Second Best
Healthcare Medical
$243.6K
$213.1K – $284.2K
NOI $17,050 @ 7.0% cap · market cap 6.66%
Theoretical Best
Office A
$332.5K
$291.0K – $387.9K
NOI $23,276 @ 7.0% cap · market cap 9.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,482
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 85741, AZ
34,131
Population
14,985
Households
2.3
Avg Household Size
39
Median Age
30%
College-Educated
92%
High-School Grad
9.5 sq mi
ZIP Area
3,593
Density / Sq Mi
$71,812
Median Household Income
$44,480
Median Earnings
$1,474
Median Rent
$268,600
Median Home Value
Market
Vacancy Rate% for Office in Tucson, AZ
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Third-floor doctor’s suite includes exam rooms, private offices, and waiting and reception areas with service windows.
Where is this medical office space located?
The property is located at 1980 Hospital Drive Tucson, AZ.
What is the asking price?
The asking price for this property is $256,000.
What are key features of this property?
This property features: 1,280 SF third‑floor doctor’s suite at 1980 W Hospital Drive, Suite 300, Tucson, AZ 85741; Includes 2 private doctor’s offices and 3 exam rooms; Waiting room, reception area, and kitchen plus bathroom
