Regional Medical Hub For
For Sale
$2,942,974
4324 23rd St, Lubbock, TX 79410
Medical district serving West Texas, Eastern New Mexico, and Texas Panhandle.
Property Size6,521 SF
Days on Market157
Property Features for 4324 23rd St
General Information
Standard status
Active
Size
6,521 SF
Property subtype
Office
Zoning
HDR
Building Details
Building Size
6,521 SF
Year Built
2016
Listing Agency:
Coldwell Banker Commercial Capital Advisors
(806) 793-0888
Listed By:
Alex Eberhardt
(806) 793-0888
Source:
Cbcworldwide
Added: Mar 5
Changed: Aug 8
Last Checked: Apr 5 at 8:53PM
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 Coldwell Banker Commercial Capital Advisors
Investment Insights
Based on property information with market context.
This medical district encompasses over 5 million square feet of medical space, including hospitals, clinics, research centers, and educational facilities. It serves over 1.2 million people across West Texas, Eastern New Mexico, and the Texas Panhandle. Drawing patients from over 100 counties, it functions as a referral center for specialized care. The medical district's influence extends beyond Lubbock, serving as a critical healthcare provider for rural communities across West Texas and Eastern New Mexico. With over 30 clinic locations, institutions ensure that advanced medical care is accessible throughout the region.
Key Highlights
- Over 5 million square feet of medical space.
- Serves over 1.2 million people across a large tri‑state area.
- Referral center for specialized care drawing patients from over 100 counties.
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
$87,587
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
2.98%
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%
$1,751,740
$1.8M
Cap Rate 7%
$1,251,243
$1.3M
Cap Rate 9%
$973,189
$973.2K
Market Conditions
NOI Build-Up for 6,521 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
$160.4K $24.60/SF
− Vacancy
−$14.4K −$2.21/SF
EGI
$146.0K $22.39/SF
− OpEx
−$58.4K −$8.95/SF
NOI
$87.6K $13.43/SF
Area
Lubbock, TX
Vacancy
9.00%
Lease Rate
$24.60 /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%
$1,751,740
Cap Rate 7%
$1,251,243
Cap Rate 9%
$973,189
Alternative Uses
Best Use
Healthcare Medical
$1.25M
$1.09M – $1.46M
NOI $87,587 @ 7.0% cap · market cap 2.98%
Second Best
Office B
$1.22M
$1.07M – $1.42M
NOI $85,246 @ 7.0% cap · market cap 2.90%
Theoretical Best
Office A
$1.64M
$1.44M – $1.92M
NOI $115,077 @ 7.0% cap · market cap 3.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
516
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79410, TX
8,615
Population
4,736
Households
1.8
Avg Household Size
29
Median Age
47%
College-Educated
91%
High-School Grad
2.4 sq mi
ZIP Area
3,590
Density / Sq Mi
$48,350
Median Household Income
$29,637
Median Earnings
$1,315
Median Rent
$211,300
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical district serving West Texas, Eastern New Mexico, and Texas Panhandle.
Where is this medical office space located?
The property is located at 4324 23rd St Lubbock, TX.
What is the asking price?
The asking price for this property is $2,942,974.
What are key features of this property?
This property features: Over 5 million square feet of medical space.; Serves over 1.2 million people across a large tri‑state area.; Referral center for specialized care drawing patients from over 100 counties.
