Elevator-Served Medical
For Sale
$199,900
725 Reservoir Avenue, Cranston, RI 02910
Commercial/Business,Commercial Sale, Cranston, RI
Property Size1,588 SF
Price / SF$125.88
Days on Market58
Property Features for 725 Reservoir Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C4
Parking
10
Subdivision
Forest Hills
Lot features
Assoc. Fee, Sidewalks, Suburban
Standard status
Active
Size
1,588 SF
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
5217
HOA Fee
$533 Monthly
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Central
Cooling system
Central Air
Building Details
Year built
1987
Number of units
1
Building materials
Masonry
Listing Agency:
Re/Max Preferred · RE/MAX International
(401) 353-2200
Listed By:
Edward West · License #C9995
(401) 383-8411
Added: Jun 30
Changed: Aug 19
Last Checked: Aug 26 at 1:06PM
MLS# 1416739
Copyright © 2026 State Wide MLS of Rhode Island, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,588-square-foot medical office condominium occupies the second floor of a masonry building constructed in 1987. The layout includes a generous reception and waiting area, three exam rooms, three private offices, two restrooms, and additional storage. Elevator access serves the office, and parking is available on site.
The property is located in Cranston, Rhode Island, and carries C4 zoning. Building systems include natural gas heat and central air conditioning, with public sewer service. A monthly condominium fee covers water, sewer, master insurance, common-area maintenance, and utilities, providing an established operating structure for the unit.
The property is located in Cranston, Rhode Island, and carries C4 zoning. Building systems include natural gas heat and central air conditioning, with public sewer service. A monthly condominium fee covers water, sewer, master insurance, common-area maintenance, and utilities, providing an established operating structure for the unit.
Key Highlights
- 1,588‑square‑foot medical office condominium on the second floor
- Three exam rooms, three private offices, two restrooms, and storage
- Elevator access and ample on‑site parking
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
$15,387
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
7.70%
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%
$307,740
$307.7K
Cap Rate 7%
$219,814
$219.8K
Cap Rate 9%
$170,967
$171.0K
Market Conditions
NOI Build-Up for 1,588 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
$28.6K $18.00/SF
− Vacancy
−$2.9K −$1.85/SF
EGI
$25.6K $16.15/SF
− OpEx
−$10.3K −$6.46/SF
NOI
$15.4K $9.69/SF
Area
Providence County, RI
Vacancy
10.28%
Lease Rate
$18.00 /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%
$307,740
Cap Rate 7%
$219,814
Cap Rate 9%
$170,967
Alternative Uses
Best Use
Office B
$293.2K
$256.6K – $342.1K
NOI $20,526 @ 7.0% cap · market cap 10.27%
Second Best
Healthcare Medical
$219.8K
$192.3K – $256.5K
NOI $15,387 @ 7.0% cap · market cap 7.70%
Theoretical Best
Multifamily LT 5
$377.7K
$330.5K – $440.7K
NOI $26,441 @ 7.0% cap · market cap 13.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,374
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 02910, RI
21,907
Population
9,319
Households
2.4
Avg Household Size
39
Median Age
30%
College-Educated
90%
High-School Grad
3.4 sq mi
ZIP Area
6,443
Density / Sq Mi
$85,909
Median Household Income
$47,538
Median Earnings
$1,385
Median Rent
$302,400
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Second-floor medical office condominium with dedicated clinical rooms, private offices, storage, and on-site parking.
Where is this medical office space located?
The property is located at 725 Reservoir Avenue Cranston, RI.
What is the asking price?
The asking price for this property is $199,900.
What are key features of this property?
This property features: 1,588‑square‑foot medical office condominium on the second floor; Three exam rooms, three private offices, two restrooms, and storage; Elevator access and ample on‑site parking
