Dental Office
For Sale
Contact for pricing
5577 N Oracle Rd, Tucson, AZ 85704
Dental office property offered with a 15-year absolute net sale-leaseback structure.
Property Size4,468 SF
Price / SF$386.19
Days on Market8
Property Features for 5577 N Oracle Rd
General Information
Standard status
Active
Size
4,468 SF
Total Parking Spaces
18
Property subtype
Office
Lease Type
Absolute Net
Investment Type
Sale/Leaseback
Net Operating Income
$125,100
Additional Details
Cap Rate
7.25%
Building Details
Year Built
1987
Tenancy
Single
Listing Agency:
ParaSell Inc
(949) 942-6585
Listed By:
Scott Reid · License #REC.2020005946
Source:
Crexi
Added: Aug 4
Changed: Aug 9
Last Checked: Aug 10 at 1:26PM
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 ParaSell Inc
Investment Insights
Based on property information with market context.
This 4,468-square-foot office building is configured for dental use and was constructed in 1987. The property is offered through a sale-leaseback arrangement with a 15-year absolute net lease structure and a 7.25% CAP rate.
Located at 5577 N Oracle Rd in Tucson, Arizona, the asset provides an office-focused commercial property with an established dental-use profile. Its existing configuration and lease framework offer a defined investment format for an office property buyer.
Located at 5577 N Oracle Rd in Tucson, Arizona, the asset provides an office-focused commercial property with an established dental-use profile. Its existing configuration and lease framework offer a defined investment format for an office property buyer.
Key Highlights
- 4,468‑square‑foot office building configured for dental use
- 15‑year absolute net sale‑leaseback structure
- 7.25% CAP rate
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
$65,288
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
3.78%
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%
$1,305,760
$1.3M
Cap Rate 7%
$932,686
$932.7K
Cap Rate 9%
$725,422
$725.4K
Market Conditions
NOI Build-Up for 4,468 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
$96.5K $21.60/SF
− Vacancy
−$9.5K −$2.12/SF
EGI
$87.1K $19.48/SF
− OpEx
−$21.8K −$4.87/SF
NOI
$65.3K $14.61/SF
Area
Tucson, AZ
Vacancy
9.80%
Lease Rate
$21.60 /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%
$1,305,760
Cap Rate 7%
$932,686
Cap Rate 9%
$725,422
Alternative Uses
Best Use
Office B
$932.7K
$816.1K – $1.09M
NOI $65,288 @ 7.0% cap · market cap 3.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.16M
$1.02M – $1.35M
NOI $81,248 @ 7.0% cap · market cap 4.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,345
Businesses Nearby
Explore this area
Business Placement
Demographics for 85704, AZ
34,430
Population
17,827
Households
1.9
Avg Household Size
49
Median Age
51%
College-Educated
95%
High-School Grad
18.2 sq mi
ZIP Area
1,892
Density / Sq Mi
$76,915
Median Household Income
$43,684
Median Earnings
$1,424
Median Rent
$389,000
Median Home Value
Market
Vacancy Rate% for Office in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Dental office property offered with a 15-year absolute net sale-leaseback structure.
Where is this office building located?
The property is located at 5577 N Oracle Rd Tucson, AZ.
What is the asking price?
The asking price for this property is $1,725,517.
What are key features of this property?
This property features: 4,468‑square‑foot office building configured for dental use; 15‑year absolute net sale‑leaseback structure; 7.25% CAP rate
