Medical Office Space with NNN
For Sale
Contact for pricing
7224 Governors W, Huntsville, AL 35806
Occupied by Orion Family Dentistry under an absolute NNN lease in Huntsville’s retail and medical corridor.
Property Size3,263 SF
Price / SF$318.11
Days on Market136
Property Features for 7224 Governors W
General Information
Standard status
Active
Size
3,263 SF
Property subtype
Office, Retail
Occupancy
100%
Lease Type
Absolute Net
Net Operating Income
$72,653
Building Details
Year Built
1971
Buildings
1
Tenancy
Single
Listing Agency:
Colliers - Birmingham, Alabama
(205) 445-0955
Listed By:
Will Canary · License #AL 000119845
Source:
Crexi
Added: Apr 17
Changed: Aug 29
Last Checked: Aug 29 at 7:47PM
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 - Birmingham, Alabama
Investment Insights
Based on property information with market context.
This medical office property contains 3,263 square feet and was built in 1971. The building is leased to Orion Family Dentistry, with the tenancy affiliated with Marquee Dental Partners, a regional dental platform serving the Southeastern United States. The absolute NNN lease structure provides a defined framework for the occupancy and ongoing property responsibilities.
Located in Huntsville, Alabama, the property sits along Governors West within a retail and medical corridor described as well trafficked and accessible. Huntsville’s economy is supported by aerospace and defense, technology, advanced manufacturing, and healthcare, with a population exceeding 235,000 residents. The surrounding market context includes continued population growth, employment expansion, and corporate investment.
Located in Huntsville, Alabama, the property sits along Governors West within a retail and medical corridor described as well trafficked and accessible. Huntsville’s economy is supported by aerospace and defense, technology, advanced manufacturing, and healthcare, with a population exceeding 235,000 residents. The surrounding market context includes continued population growth, employment expansion, and corporate investment.
Key Highlights
- 3,263‑square‑foot medical office property
- Absolute NNN lease structure
- Leased to Orion Family Dentistry
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
$42,288
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
4.07%
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%
$845,760
$845.8K
Cap Rate 7%
$604,114
$604.1K
Cap Rate 9%
$469,867
$469.9K
Market Conditions
NOI Build-Up for 3,263 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
$78.3K $24.00/SF
− Vacancy
−$7.8K −$2.40/SF
EGI
$70.5K $21.60/SF
− OpEx
−$28.2K −$8.64/SF
NOI
$42.3K $12.96/SF
Area
Huntsville, AL
Vacancy
10.00%
Lease Rate
$24.00 /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%
$845,760
Cap Rate 7%
$604,114
Cap Rate 9%
$469,867
Alternative Uses
Best Use
Healthcare Medical
$604.1K
$528.6K – $704.8K
NOI $42,288 @ 7.0% cap · market cap 4.07%
Second Best
Office B
$595.5K
$521.1K – $694.8K
NOI $41,686 @ 7.0% cap · market cap 4.02%
Theoretical Best
Office A
$849.7K
$743.5K – $991.3K
NOI $59,478 @ 7.0% cap · market cap 5.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
20
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 35806, AL
25,702
Population
14,398
Households
1.8
Avg Household Size
36
Median Age
60%
College-Educated
97%
High-School Grad
25.4 sq mi
ZIP Area
1,012
Density / Sq Mi
$79,338
Median Household Income
$50,458
Median Earnings
$1,287
Median Rent
$318,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Occupied by Orion Family Dentistry under an absolute NNN lease in Huntsville’s retail and medical corridor.
Where is this medical office space located?
The property is located at 7224 Governors W Huntsville, AL.
What is the asking price?
The asking price for this property is $1,038,000.
What are key features of this property?
This property features: 3,263‑square‑foot medical office property; Absolute NNN lease structure; Leased to Orion Family Dentistry
