Single-Story Medical Office
New
For Sale
$1,250,000
535 W 25th ST, Merced, CA 95340
C-O-zoned professional space with a multi-tenant layout and on-site parking along a well-traveled Merced corridor.
Property Size4,995 SF
Lot Size0.34 Acres
Price / SF$250.25
Days on Market3
Property Features for 535 W 25th ST
General Information
Standard status
Active
Size
4,995 SF
Lot size
0.34 Acres
Property subtype
Commercial/Industrial
Zoning
C-O
Additional Details
Opportunity Zone
Yes
Road Access
Yes
Building Details
Year Built
1988
Buildings
1
Stories
1
Building Size
4,995 SF
Listing Agency:
Del Real Commercial
(209) 285-9912
Listed By:
Dan Del Real · License #01501195
(209) 285-9912
Source:
Exitrealty
Added: Aug 7
Changed: Aug 9
Last Checked: Aug 9 at 4:24AM
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 Del Real Commercial
Investment Insights
Based on property information with market context.
This single-story medical and professional office building contains approximately 4,995 SF on a 15,000 SF lot, or 0.34 acres. Constructed in 1988 and zoned C-O (Office Commercial), the property has a documented history of accommodating multiple medical and professional occupants, including Merced Faculty Associates Medical Group. On-site parking supports daily office operations and visitor access.
The building fronts a well-traveled corridor near M Street and W 25th/26th Streets in Merced, with approximately 31,000 VPD. Downtown Merced, Merced County and City government offices, and Dignity Health Mercy Merced Hospital are within a 5-minute drive. The property is also located in a federally designated Opportunity Zone, with a 3-mile trade area exceeding 105,500 residents and 30,500 daytime employees.
The building fronts a well-traveled corridor near M Street and W 25th/26th Streets in Merced, with approximately 31,000 VPD. Downtown Merced, Merced County and City government offices, and Dignity Health Mercy Merced Hospital are within a 5-minute drive. The property is also located in a federally designated Opportunity Zone, with a 3-mile trade area exceeding 105,500 residents and 30,500 daytime employees.
Key Highlights
- Approximately 4,995 SF single‑story medical/professional office building
- 15,000 SF lot totaling approximately 0.34 acres
- C‑O (Office Commercial) zoning
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
$77,143
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
6.17%
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%
$1,542,860
$1.5M
Cap Rate 7%
$1,102,043
$1.1M
Cap Rate 9%
$857,144
$857.1K
Market Conditions
NOI Build-Up for 4,995 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
$149.9K $30.00/SF
− Vacancy
−$21.3K −$4.26/SF
EGI
$128.6K $25.74/SF
− OpEx
−$51.4K −$10.30/SF
NOI
$77.1K $15.44/SF
Area
Merced County, CA
Vacancy
14.20%
Lease Rate
$30.00 /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%
$1,542,860
Cap Rate 7%
$1,102,043
Cap Rate 9%
$857,144
Alternative Uses
Best Use
Healthcare Medical
$1.10M
$964.3K – $1.29M
NOI $77,143 @ 7.0% cap · market cap 6.17%
Second Best
Office B
$134.2K
$117.5K – $156.6K
NOI $9,397 @ 7.0% cap · market cap 0.75%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,347
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95340, CA
38,606
Population
13,553
Households
2.8
Avg Household Size
33
Median Age
26%
College-Educated
86%
High-School Grad
52.0 sq mi
ZIP Area
742
Density / Sq Mi
$65,141
Median Household Income
$35,165
Median Earnings
$1,204
Median Rent
$383,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - C-O-zoned professional space with a multi-tenant layout and on-site parking along a well-traveled Merced corridor.
Where is this medical office space located?
The property is located at 535 W 25th ST Merced, CA.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Approximately 4,995 SF single‑story medical/professional office building; 15,000 SF lot totaling approximately 0.34 acres; C‑O (Office Commercial) zoning
