Medical Office
For Sale
$1,190,000
Pending
3600 Lake Otis Parkway Anchorage, Anchorage, AK 99508
Two-story medical office building offers updated suites and 1,700 SF of second-floor space.
Property Size6,796 SF
Lot Size0.43 Acres
Days on Market34
Property Features for 3600 Lake Otis Parkway Anchorage
General Information
Standard status
Pending
Size
6,796 SF
Lot size
0.43 Acres
Zoning
B1A
Building Details
Building Size
6,796 SF
Stories
2
Listing Agency:
Herrington and Company, LLC
(907) 263-9333
Listed By:
Jacob Masog · License #16644
(907) 263-9333
Source:
Herringtonlifestyleandliving
Added: Jul 10
Changed: Aug 12
Last Checked: Aug 12 at 8:32AM
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 Herrington and Company, LLC
Investment Insights
Based on property information with market context.
A two-story medical/office building with updated suites and common areas. The property includes a total 6,796 SF building on 18,594 SF of land across two parcels, and 1,700 SF is available on the second floor. The owner would vacate the ground floor if the space needs to be consolidated.
The building is offered for sale at 3600 Lake Otis Parkway in Anchorage. Public remarks note monument signage and prominent visibility from a major intersection, supporting strong street-level presence for office users.
The existing configuration is designed for multi-suite occupancy, with common areas already updated. Interested parties should review the offering package for detailed layout and suite specifics.
The building is offered for sale at 3600 Lake Otis Parkway in Anchorage. Public remarks note monument signage and prominent visibility from a major intersection, supporting strong street-level presence for office users.
The existing configuration is designed for multi-suite occupancy, with common areas already updated. Interested parties should review the offering package for detailed layout and suite specifics.
Key Highlights
- 6,796 SF two‑story medical/office building on 18,594 SF of land (2 parcels)
- Updated suites plus updated common areas in a 2‑story layout
- 2nd‑floor space available: 1,700 SF
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
$83,489
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
7.02%
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%
$1,669,780
$1.7M
Cap Rate 7%
$1,192,700
$1.2M
Cap Rate 9%
$927,656
$927.7K
Market Conditions
NOI Build-Up for 6,796 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
$142.7K $21.00/SF
− Vacancy
−$31.4K −$4.62/SF
EGI
$111.3K $16.38/SF
− OpEx
−$27.8K −$4.10/SF
NOI
$83.5K $12.29/SF
Area
Anchorage, AK
Vacancy
22.00%
Lease Rate
$21.00 /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%
$1,669,780
Cap Rate 7%
$1,192,700
Cap Rate 9%
$927,656
Alternative Uses
Best Use
Office B
$1.19M
$1.04M – $1.39M
NOI $83,489 @ 7.0% cap · market cap 7.02%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.85M
$1.61M – $2.15M
NOI $129,178 @ 7.0% cap · market cap 10.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Demographics for 99508, AK
34,394
Population
14,219
Households
2.4
Avg Household Size
34
Median Age
28%
College-Educated
91%
High-School Grad
7.1 sq mi
ZIP Area
4,844
Density / Sq Mi
$72,751
Median Household Income
$40,937
Median Earnings
$1,353
Median Rent
$309,400
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?
Office building - Two-story medical office building offers updated suites and 1,700 SF of second-floor space.
Where is this office building located?
The property is located at 3600 Lake Otis Parkway Anchorage Anchorage, AK.
What is the asking price?
The asking price for this property is $1,190,000.
What are key features of this property?
This property features: 6,796 SF two‑story medical/office building on 18,594 SF of land (2 parcels); Updated suites plus updated common areas in a 2‑story layout; 2nd‑floor space available: 1,700 SF
