Single-Tenant Medical
For Sale
$1,000,000
506 4TH AVENUE, Palmetto, FL 34221
Fully leased healthcare facility with exam rooms, physician offices, laboratory space, and a staff kitchen under an NNN lease.
Property Size3,213 SF
Price / SF$311.24
Days on Market8
Property Features for 506 4TH AVENUE
General Information
Standard status
Active
Size
3,213 SF
Property subtype
General Commercial
Occupancy
100%
Net Operating Income
$59,556
Additional Details
Asking Price
$1,000,000
Taxes and HOA fees
Annual Taxes
$8,760
Amenities
Central Air
3
City Road, Asphalt.
Building Details
Year Built
1978
Tenancy
Single
Listing Agency:
RE/MAX ALLIANCE GROUP
(941) 360-7777
Listed By:
Lily Behrends · License #3152514
Source:
Xome
Added: Aug 22
Changed: Aug 28
Last Checked: Aug 29 at 6:05AM
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 RE/MAX ALLIANCE GROUP
Investment Insights
Based on property information with market context.
This purpose-built medical office at 506 4th Avenue in Palmetto is fully leased to Millennium Medical as a single-tenant healthcare property. The interior includes seven exam rooms, three private physician offices, a dedicated lab, and a staff kitchen and lounge. The building was constructed in 1978 and has three recently installed HVAC systems.
The property is subject to an NNN lease with annual rent escalations and two 2-year renewal options. The lease structure places responsibility for taxes, insurance, and maintenance with the tenant. Located on an asphalt city road, the facility provides a defined medical-office configuration for continued healthcare occupancy.
The property is subject to an NNN lease with annual rent escalations and two 2-year renewal options. The lease structure places responsibility for taxes, insurance, and maintenance with the tenant. Located on an asphalt city road, the facility provides a defined medical-office configuration for continued healthcare occupancy.
Key Highlights
- Fully leased single‑tenant medical office occupied by Millennium Medical
- NNN lease includes annual rent escalations and two 2‑year renewal options
- Seven exam rooms, three private physician offices, and a dedicated lab
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
$52,467
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
5.25%
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%
$1,049,340
$1.0M
Cap Rate 7%
$749,529
$749.5K
Cap Rate 9%
$582,967
$583.0K
Market Conditions
NOI Build-Up for 3,213 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
$74.0K $23.04/SF
− Vacancy
−$4.1K −$1.27/SF
EGI
$70.0K $21.77/SF
− OpEx
−$17.5K −$5.44/SF
NOI
$52.5K $16.33/SF
Area
Manatee County, FL
Vacancy
5.50%
Lease Rate
$23.04 /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%
$1,049,340
Cap Rate 7%
$749,529
Cap Rate 9%
$582,967
Alternative Uses
Best Use
Office B
$749.5K
$655.8K – $874.5K
NOI $52,467 @ 7.0% cap · market cap 5.25%
Second Best
Healthcare Medical
$708.6K
$620.1K – $826.7K
NOI $49,604 @ 7.0% cap · market cap 4.96%
Theoretical Best
Office A
$944.8K
$826.7K – $1.10M
NOI $66,139 @ 7.0% cap · market cap 6.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
91
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 34221, FL
48,082
Population
24,812
Households
1.9
Avg Household Size
45
Median Age
28%
College-Educated
91%
High-School Grad
53.9 sq mi
ZIP Area
892
Density / Sq Mi
$74,314
Median Household Income
$40,072
Median Earnings
$1,459
Median Rent
$298,200
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 - Fully leased healthcare facility with exam rooms, physician offices, laboratory space, and a staff kitchen under an NNN lease.
Where is this medical office space located?
The property is located at 506 4TH AVENUE Palmetto, FL.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Fully leased single‑tenant medical office occupied by Millennium Medical; NNN lease includes annual rent escalations and two 2‑year renewal options; Seven exam rooms, three private physician offices, and a dedicated lab
