Commercial Building Used as
For Sale
$165,000
Pending
501 6th St, Taft, CA 93268
Commercial building currently used as a doctor's office for sale.
Property Size1,160 SF
Lot Size0.15 Acres
Days on Market166
Property Features for 501 6th St
General Information
Standard status
Pending
Size
1,160 SF
Lot size
0.15 Acres
Property subtype
Commercial
Building Details
Building Size
1,160 SF
Year Built
1968
Listing Agency:
Real Estate eBroker Inc.
(760) 722-3222
Listed By:
Karri Christensen · License #01333971
(760) 722-3222
Source:
Elliman
Added: Mar 10
Changed: Aug 13
Last Checked: Aug 21 at 9:01AM
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 Real Estate eBroker Inc.
Investment Insights
Based on property information with market context.
This commercial building is currently used as a doctor's office. The property was ADA compliant at the time the current tenants opened their business. The current lease began on May 1, 2019, and ends on April 30, 2022, with a monthly rent of $2,000. The tenants have been in place since December 2008 and are responsible for gas and electric expenses. The owner covers water, sewer, and trash expenses as per the lease agreement. The property includes two separated building spaces: 501 6th St, currently used as a doctor's office, and 503 6th St, used as a private office area.
Key Highlights
- Long‑term tenants since 2008 provide stable rental income.
- Current lease in place for $2,000 per month.
- Two separate building spaces (501 & 503 6th St) offer flexibility.
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
$13,329
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
8.08%
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%
$266,580
$266.6K
Cap Rate 7%
$190,414
$190.4K
Cap Rate 9%
$148,100
$148.1K
Market Conditions
NOI Build-Up for 1,160 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
$20.2K $17.40/SF
− Vacancy
−$2.4K −$2.08/SF
EGI
$17.8K $15.32/SF
− OpEx
−$4.4K −$3.83/SF
NOI
$13.3K $11.49/SF
Area
Kern County, CA
Vacancy
11.95%
Lease Rate
$17.40 /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%
$266,580
Cap Rate 7%
$190,414
Cap Rate 9%
$148,100
Alternative Uses
Best Use
Office B
$190.4K
$166.6K – $222.2K
NOI $13,329 @ 7.0% cap · market cap 8.08%
Second Best
Healthcare Medical
$131.3K
$114.9K – $153.2K
NOI $9,192 @ 7.0% cap · market cap 5.57%
Theoretical Best
Warehouse
$247.8K
$216.8K – $289.1K
NOI $17,347 @ 7.0% cap · market cap 10.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
631
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93268, CA
18,502
Population
6,289
Households
2.9
Avg Household Size
32
Median Age
9%
College-Educated
74%
High-School Grad
68.1 sq mi
ZIP Area
272
Density / Sq Mi
$55,473
Median Household Income
$28,563
Median Earnings
$998
Median Rent
$225,000
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 - Commercial building currently used as a doctor's office for sale.
Where is this medical office space located?
The property is located at 501 6th St Taft, CA.
What is the asking price?
The asking price for this property is $165,000.
What are key features of this property?
This property features: Long‑term tenants since 2008 provide stable rental income.; Current lease in place for $2,000 per month.; Two separate building spaces (501 & 503 6th St) offer flexibility.
