Single-Tenant Medical
New
For Sale
$1,000,000
506 4TH W, Palmetto, FL 34221
Purpose-built medical space leased under an NNN structure with renewal options and recently upgraded HVAC systems.
Property Size3,213 SF
Days on Market7
Property Features for 506 4TH W
General Information
Standard status
Active
Size
3,213 SF
Property subtype
Commercial
Occupancy
100%
Additional Details
Office Units
1
Taxes and HOA fees
Annual Taxes
$8,760
Building Details
Building Size
3,213 SF
Year Built
1978
Tenancy
Single
Owner Occupied
No
Listing Agency:
RE/MAX ALLIANCE GROUP
(941) 526-9121
Listed By:
Lily Behrends · License #3152514
(941) 526-9121
Source:
Elliman
Added: Aug 25
Changed: Aug 29
Last Checked: Aug 30 at 9:09PM
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 is fully leased to Millennium Medical under a NNN lease that includes annual rent escalations and two 2-year renewal options. The interior is arranged for clinical operations, with seven exam rooms, three private physician offices, a dedicated lab, and a staff kitchen and lounge.
Three new HVAC systems have been installed, addressing a major building-system component. Built in 1978, the property is located at 506 4TH W in Palmetto, Florida, within the Manatee County medical corridor. The location records a walk score of 69 and a bike score of 48.
Three new HVAC systems have been installed, addressing a major building-system component. Built in 1978, the property is located at 506 4TH W in Palmetto, Florida, within the Manatee County medical corridor. The location records a walk score of 69 and a bike score of 48.
Key Highlights
- Fully leased to Millennium Medical under an NNN lease
- Seven exam rooms, three private physician offices, and a dedicated lab
- Two 2‑year renewal options with annual rent escalations
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
1
Office units
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,021
Businesses Nearby
Balanced
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Purpose-built medical space leased under an NNN structure with renewal options and recently upgraded HVAC systems.
Where is this medical office space located?
The property is located at 506 4TH W 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 to Millennium Medical under an NNN lease; Seven exam rooms, three private physician offices, and a dedicated lab; Two 2‑year renewal options with annual rent escalations
