Three-Story Office Building with
For Sale
$4,300,000
3940 Arctic Boulevard, Anchorage, AK 99503
Commercial Sale, Anchorage, AK
Property Size30,240 SF
Lot Size0.95 Acres
Price / SF$142.20
Days on Market372
Property Features for 3940 Arctic Boulevard
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B3 - General Business
Parking
60
Security features
Security System
View
City
Directions
West side of Arctic between Tudor Rd and 36th Avenue. At the intersection of W 40th Ave and Arctic Blvd.
Subdivision
1A - Anchorage Municipality
Standard status
Active
APN
01011627000
Size
30,240 SF
Lot size
0.95 Acres
Taxes and HOA fees
Tax Description
Spenard Acres BLK E LT 6
Legal Description
Spenard Acres BLK E LT 6
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Natural Gas
Building Details
Year built
1984
Floors in Building
3
Flooring type
Carpet
Building materials
Wood Frame
Listing Agency:
Berkshire Hathaway HomeServices Alaska Realty
(907) 646-3600
Listed By:
Lottie Michael · License #2519
(907) 646-3600
Added: Aug 18, 2025
Changed: Aug 19
Last Checked: Aug 24 at 11:06AM
MLS# 25-10810
Copyright © 2026 Alaska Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Three-story midtown office building with full basement storage, built with wood-frame construction. The building is heated with natural gas forced-air systems and has carpet flooring. ADA-compliant access is supported by an elevator. Full-service operations include janitorial.
Additional building updates include new UV solar film applied to the windows.
The property is sited on a 0.95-acre lot and connected to public sewer. With zoning designated B3 - General Business, the building supports a range of general business office uses.
Additional building updates include new UV solar film applied to the windows.
The property is sited on a 0.95-acre lot and connected to public sewer. With zoning designated B3 - General Business, the building supports a range of general business office uses.
Key Highlights
- Three‑story office building with full basement storage
- ADA‑compliant elevator
- New UV solar film applied to windows
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
$371,498
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
8.64%
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%
$7,429,960
$7.4M
Cap Rate 7%
$5,307,114
$5.3M
Cap Rate 9%
$4,127,756
$4.1M
Market Conditions
NOI Build-Up for 30,240 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
$635.0K $21.00/SF
− Vacancy
−$139.7K −$4.62/SF
EGI
$495.3K $16.38/SF
− OpEx
−$123.8K −$4.10/SF
NOI
$371.5K $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%
$7,429,960
Cap Rate 7%
$5,307,114
Cap Rate 9%
$4,127,756
Alternative Uses
Best Use
Office B
$5.31M
$4.64M – $6.19M
NOI $371,498 @ 7.0% cap · market cap 8.64%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$8.21M
$7.19M – $9.58M
NOI $574,802 @ 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
Demographics for 99503, AK
13,550
Population
7,411
Households
1.8
Avg Household Size
36
Median Age
30%
College-Educated
91%
High-School Grad
20.7 sq mi
ZIP Area
655
Density / Sq Mi
$76,888
Median Household Income
$46,734
Median Earnings
$1,185
Median Rent
$316,700
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 - Three-story Midtown office building on 0.95 acres with ADA-compliant elevator and full basement storage.
Where is this office building located?
The property is located at 3940 Arctic Boulevard Anchorage, AK.
What is the asking price?
The asking price for this property is $4,300,000.
What are key features of this property?
This property features: Three‑story office building with full basement storage; ADA‑compliant elevator; New UV solar film applied to windows
