Fully Leased Medical Office
For Sale
Contact for pricing
3156 State Street, Medford, OR 97504
Two-level medical office with exam rooms, modern patient areas, and long-term single-tenant occupancy through 2030.
Property Size7,497 SF
Price / SF$273.44
Days on Market69
Property Features for 3156 State Street
General Information
Standard status
Active
Size
7,497 SF
Class
B
Total Parking Spaces
40
Property subtype
Office
Zoning
MFR-20 with PUD (Planned-Unit Development) overlay
Occupancy
100%
Lease Type
NNN
Additional Details
Heavy Power
Yes
Building Details
Year Built
2006
Buildings
1
Stories
3
Units
40
Tenancy
Single
Listing Agency:
Merit Commercial Real Estate
(541) 608-6704
Listed By:
Scott King · License #Oregon 200602153
Source:
Crexi
Added: Jun 4
Changed: Aug 9
Last Checked: Aug 10 at 1:20PM
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 Merit Commercial Real Estate
Investment Insights
Based on property information with market context.
3156 State Street is a fully leased, income-producing medical office building with two primary levels plus a smaller third-floor attic storage area. The building totals approximately 17,497 SF and is laid out to support clinical operations, including prominent patient entry and waiting areas, expansive reception, multiple offices, and a substantial number of exam rooms. The first floor includes a lab room, a private restroom, a mechanical room, and various work stations. The second floor offers a similar configuration with access via elevator or stairs, a second reception desk and waiting area, a product display area, additional exam rooms and offices, two private restrooms, and a well-appointed break room with an outdoor balcony, along with room for storage. The third floor contains approximately 691 SF of low-ceiling attic space used for storage.
The property is positioned in Alderwood Office Park in east Medford, Oregon, and is described as a high-profile, well-maintained facility with modern infrastructure. Utilities include 3-phase 400A electricity, natural gas service via Avista, Hunter fiber optic internet service, and public water and sewer.
Complete Care leases the building as a single tenant through 2030 under a long-term net lease. The interior buildout and finishes are suited for higher-end medical clinic use, and the property is described as being set up for similar healthcare uses beyond the current tenant. Buyer due diligence is required, and square footage is not verified and must be independently confirmed.
The property is positioned in Alderwood Office Park in east Medford, Oregon, and is described as a high-profile, well-maintained facility with modern infrastructure. Utilities include 3-phase 400A electricity, natural gas service via Avista, Hunter fiber optic internet service, and public water and sewer.
Complete Care leases the building as a single tenant through 2030 under a long-term net lease. The interior buildout and finishes are suited for higher-end medical clinic use, and the property is described as being set up for similar healthcare uses beyond the current tenant. Buyer due diligence is required, and square footage is not verified and must be independently confirmed.
Key Highlights
- Medical office building built in 2006 with approx. 7,497 SF across two levels plus approx. 691 SF attic storage
- First floor approx. 3,517 SF with patient entry and waiting, reception, 6 offices, 10 exam rooms, lab room, private restroom, and mechanical room
- Second floor approx. 3,289 SF with elevator/stair entry, reception and waiting, product display, 8 exam rooms, 6 offices, two private restrooms, break room with balcony
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
$108,699
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
5.30%
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%
$2,173,980
$2.2M
Cap Rate 7%
$1,552,843
$1.6M
Cap Rate 9%
$1,207,767
$1.2M
Market Conditions
NOI Build-Up for 7,497 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
$202.4K $27.00/SF
− Vacancy
−$21.3K −$2.84/SF
EGI
$181.2K $24.17/SF
− OpEx
−$72.5K −$9.67/SF
NOI
$108.7K $14.50/SF
Area
Jackson County, OR
Vacancy
10.50%
Lease Rate
$27.00 /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%
$2,173,980
Cap Rate 7%
$1,552,843
Cap Rate 9%
$1,207,767
Alternative Uses
Best Use
Healthcare Medical
$1.55M
$1.36M – $1.81M
NOI $108,699 @ 7.0% cap · market cap 5.30%
Second Best
Office B
$1.31M
$1.15M – $1.53M
NOI $91,763 @ 7.0% cap · market cap 4.48%
Theoretical Best
Office A
$1.81M
$1.58M – $2.11M
NOI $126,669 @ 7.0% cap · market cap 6.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Heavy power
Location Intelligence
Trade Area within ½ mile
1,440
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97504, OR
49,942
Population
21,290
Households
2.3
Avg Household Size
43
Median Age
38%
College-Educated
93%
High-School Grad
43.3 sq mi
ZIP Area
1,153
Density / Sq Mi
$81,233
Median Household Income
$43,744
Median Earnings
$1,387
Median Rent
$447,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-level medical office with exam rooms, modern patient areas, and long-term single-tenant occupancy through 2030.
Where is this medical office space located?
The property is located at 3156 State Street Medford, OR.
What is the asking price?
The asking price for this property is $2,050,000.
What are key features of this property?
This property features: Medical office building built in 2006 with approx. 7,497 SF across two levels plus approx. 691 SF attic storage; First floor approx. 3,517 SF with patient entry and waiting, reception, 6 offices, 10 exam rooms, lab room, private restroom, and mechanical room; Second floor approx. 3,289 SF with elevator/stair entry, reception and waiting, product display, 8 exam rooms, 6 offices, two private restrooms, break room with balcony
