Medical Center with Net
For Sale
Contact for pricing
Pending
2710 Avenue Q, Lubbock, TX 79411
Net-leased healthcare facility with three five-year renewal options.
Property Size16,872 SF
Lot Size1.16 Acres
Days on Market156
Property Features for 2710 Avenue Q
General Information
Standard status
Pending
Size
16,872 SF
Lot size
1.16 Acres
Property subtype
Office
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$401,811
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Renovated
2013
Tenancy
Single
Listing Agency:
CBRE - Saddle Brook
Listed By:
Karly Iacono · License #NJ 0345216
Source:
Crexi
Added: Mar 30
Changed: Aug 30
Last Checked: Aug 30 at 2:15PM
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 - Saddle Brook
Investment Insights
Based on property information with market context.
This 16,872-square-foot medical center occupies 1.16 acres in Lubbock and is operated as a Fresenius Kidney Care facility. The property is subject to a net lease with approximately 3.1 years of firm term remaining, followed by three five-year options. Contractual rent increases are set at 1.7% annually during the primary term.
The site fronts a major north–south commercial corridor with reported traffic of 23,045 vehicles per day. Downtown Lubbock, Texas Tech University, and major healthcare anchors are minutes away, with regional access provided by the nearby Marsha Sharp Freeway and Interstate 27. The surrounding five-mile area includes more than 175,000 residents, while the Lubbock MSA exceeds 362,000 residents. Nearby schools, medical facilities, retail destinations, service businesses, and established neighborhoods contribute to the area’s daytime activity and commercial mix.
The site fronts a major north–south commercial corridor with reported traffic of 23,045 vehicles per day. Downtown Lubbock, Texas Tech University, and major healthcare anchors are minutes away, with regional access provided by the nearby Marsha Sharp Freeway and Interstate 27. The surrounding five-mile area includes more than 175,000 residents, while the Lubbock MSA exceeds 362,000 residents. Nearby schools, medical facilities, retail destinations, service businesses, and established neighborhoods contribute to the area’s daytime activity and commercial mix.
Key Highlights
- 16,872‑square‑foot medical center on 1.16 acres
- Net lease with approximately 3.1 years of firm term remaining
- Three five‑year tenant options
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
$226,618
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
3.86%
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%
$4,532,360
$4.5M
Cap Rate 7%
$3,237,400
$3.2M
Cap Rate 9%
$2,517,978
$2.5M
Market Conditions
NOI Build-Up for 16,872 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
$415.1K $24.60/SF
− Vacancy
−$37.4K −$2.21/SF
EGI
$377.7K $22.39/SF
− OpEx
−$151.1K −$8.95/SF
NOI
$226.6K $13.43/SF
Area
Lubbock, TX
Vacancy
9.00%
Lease Rate
$24.60 /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%
$4,532,360
Cap Rate 7%
$3,237,400
Cap Rate 9%
$2,517,978
Alternative Uses
Best Use
Healthcare Medical
$3.24M
$2.83M – $3.78M
NOI $226,618 @ 7.0% cap · market cap 3.86%
Second Best
Office B
$3.15M
$2.76M – $3.68M
NOI $220,559 @ 7.0% cap · market cap 3.76%
Theoretical Best
Office A
$4.25M
$3.72M – $4.96M
NOI $297,744 @ 7.0% cap · market cap 5.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
644
Businesses Nearby
Explore this area
Business Placement
Demographics for 79411, TX
7,297
Population
3,474
Households
2.1
Avg Household Size
31
Median Age
22%
College-Educated
72%
High-School Grad
1.5 sq mi
ZIP Area
4,865
Density / Sq Mi
$44,866
Median Household Income
$24,493
Median Earnings
$942
Median Rent
$85,000
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 center - Net-leased healthcare facility with three five-year renewal options.
Where is this medical center located?
The property is located at 2710 Avenue Q Lubbock, TX.
What is the asking price?
The asking price for this property is $5,865,850.
What are key features of this property?
This property features: 16,872‑square‑foot medical center on 1.16 acres; Net lease with approximately 3.1 years of firm term remaining; Three five‑year tenant options
