Medical Office Building For
For Sale
Contact for pricing
2727 1st Ave SE, Cedar Rapids, IA 52402
8,576 SF medical office building available for sale.
Property Size8,576 SF
Price / SF$75.79
Days on Market696
Property Features for 2727 1st Ave SE
General Information
Standard status
Active
Size
8,576 SF
Property subtype
Office
Zoning
T-MC
Building Details
Year Built
1972
Listing Agency:
GLD Commercial Real Estate Advisors
(319) 731-3415
Listed By:
Adam Gibbs · License #IA B43857000
Source:
Crexi
Added: Sep 26, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:11AM
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 GLD Commercial Real Estate Advisors
Investment Insights
Based on property information with market context.
This 8,576 square foot medical office building is available for sale or lease. The building features a split foyer design. The lower level was most recently configured as a periodontic clinic. The upper level contains two suites, one currently set up as an active orthodontist practice with modern finishes, and the other most recently used as a general dental practice. The property benefits from over 100 feet of frontage on 1st Avenue, along with 54 parking spaces. Access is available from both 1st Avenue and 2nd Avenue SE. The location offers high visibility with traffic counts of nearly 20,000 vehicles daily.
Key Highlights
- Prime location with high traffic count (nearly 20,000 vehicles daily) and frontage on 1st Ave.
- Large building size: 8,576 square feet suitable for medical practices.
- 54 parking spaces** and access from both 1st Ave and 2nd Ave SE.
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
$41,186
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
6.34%
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%
$823,720
$823.7K
Cap Rate 7%
$588,371
$588.4K
Cap Rate 9%
$457,622
$457.6K
Market Conditions
NOI Build-Up for 8,576 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
$72.0K $8.40/SF
− Vacancy
−$17.1K −$2.00/SF
EGI
$54.9K $6.40/SF
− OpEx
−$13.7K −$1.60/SF
NOI
$41.2K $4.80/SF
Area
Cedar Rapids, IA
Vacancy
23.77%
Lease Rate
$8.40 /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%
$823,720
Cap Rate 7%
$588,371
Cap Rate 9%
$457,622
Alternative Uses
Best Use
Healthcare Medical
$913.0K
$798.9K – $1.07M
NOI $63,908 @ 7.0% cap · market cap 9.83%
Second Best
Office B
$588.4K
$514.8K – $686.4K
NOI $41,186 @ 7.0% cap · market cap 6.34%
Theoretical Best
Specialty Retail
$1.24M
$1.09M – $1.45M
NOI $86,886 @ 7.0% cap · market cap 13.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
415
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 52402, IA
42,072
Population
19,848
Households
2.1
Avg Household Size
36
Median Age
41%
College-Educated
95%
High-School Grad
13.7 sq mi
ZIP Area
3,071
Density / Sq Mi
$71,319
Median Household Income
$41,753
Median Earnings
$992
Median Rent
$188,700
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - 8,576 SF medical office building available for sale.
Where is this medical office space located?
The property is located at 2727 1st Ave SE Cedar Rapids, IA.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Prime location with high traffic count (nearly 20,000 vehicles daily) and frontage on 1st Ave.; Large building size: **8,576 square feet suitable for medical practices.**; 54 parking spaces** and access from both 1st Ave and 2nd Ave SE.
