Medical Office
For Sale
$595,000
227 Russell St, Worcester, MA 01602
For-sale medical office space located at 227 Russell St in Worcester, Massachusetts.
Property Size2,445 SF
Price / SF$243.35
Days on Market201
Property Features for 227 Russell St
General Information
Standard status
Active
Size
2,445 SF
Property subtype
Commercial
Zoning
BL-1
Taxes and HOA fees
Annual Taxes
$12,362
Building Details
Building Size
2,445 SF
Year Built
1920
Listing Agency:
Herion Karbunara
(833) 668-4649
Listed By:
Chris Bernier
(978) 578-5013
Source:
Churchillprop
Added: Feb 16
Changed: Sep 4
Last Checked: Sep 4 at 2:20AM
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 Herion Karbunara
Investment Insights
Based on property information with market context.
This offering presents a for-sale medical office space at 227 Russell St in Worcester, Massachusetts. The property is categorized as medical office and office space, making it suitable for professional uses aligned with healthcare office operations.
The asset’s address provides straightforward identification for buyers and brokers conducting site visits and due diligence. Prospective purchasers should confirm all specifics related to layout, condition, and any building systems or allowable uses directly as part of the transaction process.
Based on the information available, the most important takeaway is that the property is positioned as a healthcare office setting within a broader office-use context.
The asset’s address provides straightforward identification for buyers and brokers conducting site visits and due diligence. Prospective purchasers should confirm all specifics related to layout, condition, and any building systems or allowable uses directly as part of the transaction process.
Based on the information available, the most important takeaway is that the property is positioned as a healthcare office setting within a broader office-use context.
Key Highlights
- Medical office space for sale at 227 Russell St in Worcester, Massachusetts
- Year built: 1920
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
$40,929
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
6.88%
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%
$818,580
$818.6K
Cap Rate 7%
$584,700
$584.7K
Cap Rate 9%
$454,767
$454.8K
Market Conditions
NOI Build-Up for 2,445 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
$73.4K $30.00/SF
− Vacancy
−$5.1K −$2.10/SF
EGI
$68.2K $27.90/SF
− OpEx
−$27.3K −$11.16/SF
NOI
$40.9K $16.74/SF
Area
Worcester, MA
Vacancy
7.00%
Lease Rate
$30.00 /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%
$818,580
Cap Rate 7%
$584,700
Cap Rate 9%
$454,767
Alternative Uses
Best Use
Healthcare Medical
$584.7K
$511.6K – $682.2K
NOI $40,929 @ 7.0% cap · market cap 6.88%
Second Best
Office B
$580.0K
$507.5K – $676.7K
NOI $40,599 @ 7.0% cap · market cap 6.82%
Theoretical Best
Office A
$816.1K
$714.1K – $952.1K
NOI $57,126 @ 7.0% cap · market cap 9.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,115
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 01602, MA
25,382
Population
10,483
Households
2.4
Avg Household Size
39
Median Age
47%
College-Educated
91%
High-School Grad
5.8 sq mi
ZIP Area
4,376
Density / Sq Mi
$94,351
Median Household Income
$47,259
Median Earnings
$1,471
Median Rent
$380,800
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - For-sale medical office space located at 227 Russell St in Worcester, Massachusetts.
Where is this medical office space located?
The property is located at 227 Russell St Worcester, MA.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Medical office space for sale at 227 Russell St in Worcester, Massachusetts; Year built: 1920
