Leased Medical Office
For Sale
$566,250
2 Governors Lane, Chico, CA 95926
Fully leased two-story medical office with exam rooms, private offices, and on-site parking within a professional office complex.
Property Size3,408 SF
Lot Size0.28 Acres
Price / SF$166.15
Days on Market139
Property Features for 2 Governors Lane
General Information
Standard status
Active
Size
3,408 SF
Lot size
0.28 Acres
Property subtype
Commercial/Industrial
Occupancy
100%
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1989
Stories
2
Tenancy
Single
Listing Agency:
Capital Rivers Commercial Inc
(530) 570-5107
Listed By:
Carrie Welch · License #01926238
(530) 570-5107
Source:
Exitrealty
Added: Apr 7
Changed: Aug 23
Last Checked: Aug 22 at 3:38PM
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 Capital Rivers Commercial Inc
Investment Insights
Based on property information with market context.
2 Governors Lane is a fully leased medical office building configured across two stories, totaling approximately 3,408 square feet on a 12,343 square foot lot. The interior includes four exam rooms, four private offices, a reception area, a waiting room, five restrooms, three large work areas, and a break room. The building is situated within a well-maintained professional office complex.
The property supports convenient access to CA-99 and East Avenue and includes on-site parking. Its location in Chico’s established commercial corridor places it among professional offices, retail, dining, shopping centers, and medical services, providing a cohesive day-to-day operating environment for the existing medical tenant.
The property supports convenient access to CA-99 and East Avenue and includes on-site parking. Its location in Chico’s established commercial corridor places it among professional offices, retail, dining, shopping centers, and medical services, providing a cohesive day-to-day operating environment for the existing medical tenant.
Key Highlights
- Fully leased medical office building with 3,408 SF across two stories
- Occupied by Enloe Health under a full NNN lease
- Layout includes four exam rooms, four private offices, reception and waiting area
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
$39,628
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
7.00%
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%
$792,560
$792.6K
Cap Rate 7%
$566,114
$566.1K
Cap Rate 9%
$440,311
$440.3K
Market Conditions
NOI Build-Up for 3,408 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
$69.5K $20.40/SF
− Vacancy
−$3.5K −$1.02/SF
EGI
$66.0K $19.38/SF
− OpEx
−$26.4K −$7.75/SF
NOI
$39.6K $11.63/SF
Area
Chico, CA
Vacancy
5.00%
Lease Rate
$20.40 /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%
$792,560
Cap Rate 7%
$566,114
Cap Rate 9%
$440,311
Alternative Uses
Best Use
Healthcare Medical
$566.1K
$495.4K – $660.5K
NOI $39,628 @ 7.0% cap · market cap 7.00%
Second Best
Office B
$515.2K
$450.8K – $601.1K
NOI $36,067 @ 7.0% cap · market cap 6.37%
Theoretical Best
Office A
$688.1K
$602.1K – $802.8K
NOI $48,167 @ 7.0% cap · market cap 8.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,577
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 95926, CA
41,259
Population
18,566
Households
2.2
Avg Household Size
31
Median Age
45%
College-Educated
96%
High-School Grad
7.8 sq mi
ZIP Area
5,290
Density / Sq Mi
$62,334
Median Household Income
$27,870
Median Earnings
$1,418
Median Rent
$462,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully leased two-story medical office with exam rooms, private offices, and on-site parking within a professional office complex.
Where is this medical office space located?
The property is located at 2 Governors Lane Chico, CA.
What is the asking price?
The asking price for this property is $566,250.
What are key features of this property?
This property features: Fully leased medical office building with 3,408 SF across two stories; Occupied by Enloe Health under a full NNN lease; Layout includes four exam rooms, four private offices, reception and waiting area
