Class A Medical/Office
For Sale
Contact for pricing
5900 Lake Wright Dr, Norfolk, VA 23502
Centrally located Class A medical/office space with convenient interstate access.
Property Size80,730 SF
Price / SF$135.02
Days on Market1218
Property Features for 5900 Lake Wright Dr
General Information
Standard status
Active
Size
80,730 SF
Class
A
Property subtype
Office
Listing Agency:
Colliers - Norfolk, Virginia
(757) 490-3300
Listed By:
Don Crigger · License #VIRGINIA
Source:
Crexi
Added: May 3, 2023
Changed: Aug 21
Last Checked: Aug 29 at 9:34PM
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 Colliers - Norfolk, Virginia
Investment Insights
Based on property information with market context.
Silver Oak is centrally located in Hampton Roads within a campus-style setting, offering Class A medical and office space. It provides convenient interstate access and amenities. The property is located within two miles of the Norfolk Premium Outlets and Norfolk International Airport, sixteen miles from the Virginia Beach Oceanfront, and seven miles from Downtown Norfolk. Situated on the east side of Lake Wright Drive, northeast of USAA Drive, in Norfolk, Virginia, the building's three floors have high visibility from Interstate 64. Access to Interstate 64 is available via Lake Wright Drive and Military Highway or USAA Drive and Northampton Boulevard, with access ramps within one mile of the property. The property size is 80730 square feet.
Key Highlights
- Class A medical/office space in a campus‑style setting.
- High visibility from Interstate 64 on all three floors.
- Convenient interstate access via I‑64.
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
$923,906
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
8.48%
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%
$18,478,120
$18.5M
Cap Rate 7%
$13,198,657
$13.2M
Cap Rate 9%
$10,265,622
$10.3M
Market Conditions
NOI Build-Up for 80,730 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
$1.65M $20.40/SF
− Vacancy
−$107.0K −$1.33/SF
EGI
$1.54M $19.07/SF
− OpEx
−$615.9K −$7.63/SF
NOI
$923.9K $11.44/SF
Area
Norfolk, VA
Vacancy
6.50%
Lease Rate
$20.40 /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%
$18,478,120
Cap Rate 7%
$13,198,657
Cap Rate 9%
$10,265,622
Alternative Uses
Best Use
Office B
$15.95M
$13.95M – $18.61M
NOI $1,116,302 @ 7.0% cap · market cap 10.24%
Second Best
Healthcare Medical
$13.20M
$11.55M – $15.40M
NOI $923,906 @ 7.0% cap · market cap 8.48%
Theoretical Best
Office A
$17.13M
$14.98M – $19.98M
NOI $1,198,798 @ 7.0% cap · market cap 11.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
419
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 23502, VA
20,547
Population
8,839
Households
2.3
Avg Household Size
39
Median Age
24%
College-Educated
89%
High-School Grad
9.9 sq mi
ZIP Area
2,075
Density / Sq Mi
$66,467
Median Household Income
$37,213
Median Earnings
$1,335
Median Rent
$244,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Banfield Pet Hospital — 1275 N Military Hwy, Norfolk, VA 23502
Frequently Asked Questions
What type of property is this?
Medical Office Space - Centrally located Class A medical/office space with convenient interstate access.
Where is this medical office space located?
The property is located at 5900 Lake Wright Dr Norfolk, VA.
What is the asking price?
The asking price for this property is $10,900,000.
What are key features of this property?
This property features: Class A medical/office space in a campus‑style setting.; High visibility from Interstate 64 on all three floors.; Convenient interstate access via I‑64.
