Two-Tenant Office
For Sale
$2,800,000
3715 International Way, Medford, OR 97504
Fully occupied commercial property at Medford Airport with federal and healthcare-related tenancy.
Property Size13,511 SF
Price / SF$207.24
Days on Market93
Property Features for 3715 International Way
General Information
Standard status
Active
Size
13,511 SF
Net Rentable
13,511 SF
Property subtype
Office
Occupancy
100%
Additional Details
Cap Rate
8.83%
Amenities
100% leased with government and investment-grade tenancy
Long-term ground lease with 22 years remaining
Recent capital improvements reduce near-term CapEx risk
Durable cash flow profile supported by mission-critical federal use
Building Details
Building Size
13,511 SF
Year Built
2003
Buildings
1
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Denver
(303) 328-2012
Listed By:
Barry Higgins · License #License(s): CO: EA748415
(303) 328-2012
Source:
Marcusmillichap
Added: Jun 1
Changed: Aug 31
Last Checked: Sep 1 at 2:29PM
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 Marcus & Millichap - Denver
Investment Insights
Based on property information with market context.
This 13,511-square-foot office building at Medford Airport is fully occupied by two tenants: U.S. Immigration and Customs Enforcement and Lincare, Inc. Built in 2003, the property has received approximately $250,000 in capital improvements requested by ICE. The asset is positioned on a long-term ground lease with the Medford Airport Authority, with approximately 22 years remaining.
ICE recently executed a firm 8-year lease extension under a modified gross structure. Lincare has occupied the property continuously since 2003 and extended its lease for five years in 2023, with expiration scheduled for 12/31/2028. Its lease is structured as triple net and includes two additional 2–3 year extension options. Medford Airport provides direct access to a regional transportation hub serving Southern Oregon.
ICE recently executed a firm 8-year lease extension under a modified gross structure. Lincare has occupied the property continuously since 2003 and extended its lease for five years in 2023, with expiration scheduled for 12/31/2028. Its lease is structured as triple net and includes two additional 2–3 year extension options. Medford Airport provides direct access to a regional transportation hub serving Southern Oregon.
Key Highlights
- 13,511‑square‑foot office building at Medford Airport
- 100% occupied by two tenants: ICE and Lincare, Inc.
- Approximately 22 years remaining on the Medford Airport Authority ground lease
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
$165,375
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
5.91%
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%
$3,307,500
$3.3M
Cap Rate 7%
$2,362,500
$2.4M
Cap Rate 9%
$1,837,500
$1.8M
Market Conditions
NOI Build-Up for 13,511 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
$259.4K $19.20/SF
− Vacancy
−$38.9K −$2.88/SF
EGI
$220.5K $16.32/SF
− OpEx
−$55.1K −$4.08/SF
NOI
$165.4K $12.24/SF
Area
Jackson County, OR
Vacancy
15.00%
Lease Rate
$19.20 /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%
$3,307,500
Cap Rate 7%
$2,362,500
Cap Rate 9%
$1,837,500
Alternative Uses
Best Use
Office B
$2.36M
$2.07M – $2.76M
NOI $165,375 @ 7.0% cap · market cap 5.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.26M
$2.85M – $3.80M
NOI $228,282 @ 7.0% cap · market cap 8.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
321
Businesses Nearby
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?
Office building - Fully occupied commercial property at Medford Airport with federal and healthcare-related tenancy.
Where is this office building located?
The property is located at 3715 International Way Medford, OR.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: 13,511‑square‑foot office building at Medford Airport; 100% occupied by two tenants: ICE and Lincare, Inc.; Approximately 22 years remaining on the Medford Airport Authority ground lease
