Medical Office
For Sale
$865,000
710 Colonial Dr, Baton Rouge, LA 70806
B1-zoned medical office property occupied by a regional medical group under a newly executed long-term lease.
Property Size7,059 SF
Price / SF$122.54
Days on Market22
Property Features for 710 Colonial Dr
General Information
Standard status
Active
Size
7,059 SF
Total Parking Spaces
22
Property subtype
Investment
Zoning
B1
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Asking Price
$895,000
Amenities
22 Parking Spaces
Building Details
Year Built
1978
Tenancy
Single
Owner Occupied
No
Abandoned
No
Listing Agency:
KPG Realty, LLC
(985) 373-6417
Listed By:
Brent Cordell · License #995690890
(985) 373-6417
Source:
Lacdb.resimplifi
Added: Aug 11
Changed: Aug 31
Last Checked: Aug 31 at 9:58AM
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 KPG Realty, LLC
Investment Insights
Based on property information with market context.
This 7,059-square-foot medical office property in Baton Rouge was built in 1978 and is zoned B1. The building is occupied by an established regional medical group operating approximately 70 additional locations. A new 5-year lease has been executed, with 3% annual rent increases and a tenant reimbursement structure.
The property is positioned along Colonial Dr with access to Airline Hwy/US-61 and I-12. Surrounding roadways carry approximately 23,481 combined VPD. The site is near the Baton Rouge Health District, Towne Center at Cedar Lodge, Mid City, LSU, and the planned public safety complex at the former Woman’s Hospital campus. Showings are available by appointment, and tenants should not be disturbed.
The property is positioned along Colonial Dr with access to Airline Hwy/US-61 and I-12. Surrounding roadways carry approximately 23,481 combined VPD. The site is near the Baton Rouge Health District, Towne Center at Cedar Lodge, Mid City, LSU, and the planned public safety complex at the former Woman’s Hospital campus. Showings are available by appointment, and tenants should not be disturbed.
Key Highlights
- 7,059‑square‑foot medical office property built in 1978
- B1 zoning supports the property’s medical office classification
- Regional medical group tenant operates approximately 70 additional locations
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
$67,953
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
7.86%
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%
$1,359,060
$1.4M
Cap Rate 7%
$970,757
$970.8K
Cap Rate 9%
$755,033
$755.0K
Market Conditions
NOI Build-Up for 7,059 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
$118.6K $16.80/SF
− Vacancy
−$5.3K −$0.76/SF
EGI
$113.3K $16.04/SF
− OpEx
−$45.3K −$6.42/SF
NOI
$68.0K $9.63/SF
Area
Baton Rouge, LA
Vacancy
4.50%
Lease Rate
$16.80 /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%
$1,359,060
Cap Rate 7%
$970,757
Cap Rate 9%
$755,033
Alternative Uses
Best Use
Healthcare Medical
$970.8K
$849.4K – $1.13M
NOI $67,953 @ 7.0% cap · market cap 7.86%
Second Best
Office B
$964.5K
$844.0K – $1.13M
NOI $67,518 @ 7.0% cap · market cap 7.81%
Theoretical Best
Specialty Retail
$1.69M
$1.48M – $1.97M
NOI $118,340 @ 7.0% cap · market cap 13.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,333
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 70806, LA
27,898
Population
14,972
Households
1.9
Avg Household Size
37
Median Age
40%
College-Educated
90%
High-School Grad
8.9 sq mi
ZIP Area
3,135
Density / Sq Mi
$53,430
Median Household Income
$41,894
Median Earnings
$1,014
Median Rent
$321,400
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 - B1-zoned medical office property occupied by a regional medical group under a newly executed long-term lease.
Where is this medical office space located?
The property is located at 710 Colonial Dr Baton Rouge, LA.
What is the asking price?
The asking price for this property is $865,000.
What are key features of this property?
This property features: 7,059‑square‑foot medical office property built in 1978; B1 zoning supports the property’s medical office classification; Regional medical group tenant operates approximately 70 additional locations
