Medical Office Building with
For Sale
Contact for pricing
729 N Custer Ave, Grand Island, NE 68803
Large medical office building on a 2.06-acre parcel with main-floor and rentable basement space.
Property Size21,249 SF
Lot Size2.06 Acres
Price / SF$155.30
Days on Market203
Property Features for 729 N Custer Ave
General Information
Standard status
Active
Size
21,249 SF
Lot size
2.06 Acres
Property subtype
Office
Occupancy
100%
Investment Type
Owner/User
Building Details
Tenancy
Single
Listing Agency:
Marcus & Millichap - Denver
Listed By:
Brandon Kramer · License #CO FA100045203
(303) 328-2020
Source:
Crexi
Added: Feb 16
Changed: Sep 6
Last Checked: Sep 7 at 11:18AM
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 Marcus & Millichap - Denver
Investment Insights
Based on property information with market context.
729 N Custer Avenue is a large-format medical office building totaling 21,249 square feet, including 18,153 square feet on the main floor and 3,096 square feet of rentable basement space. The property is situated on a 2.06-acre parcel and is positioned to support patient-oriented operations.
The building is located in the Medical Park Third Subdivision within Grand Island’s established healthcare corridor, surrounded by complementary medical and professional users. It has strong visibility along N Custer Avenue, described as a primary north–south arterial, and is noted as being in proximity to regional amenities, including the Central Nebraska Regional Airport.
For insurance and operating stability, the property is stated to be placed in FEMA Flood Zone X. The offering is positioned for owner-users and investors seeking a sizeable, purpose-built medical office asset in a supply-constrained market.
The building is located in the Medical Park Third Subdivision within Grand Island’s established healthcare corridor, surrounded by complementary medical and professional users. It has strong visibility along N Custer Avenue, described as a primary north–south arterial, and is noted as being in proximity to regional amenities, including the Central Nebraska Regional Airport.
For insurance and operating stability, the property is stated to be placed in FEMA Flood Zone X. The offering is positioned for owner-users and investors seeking a sizeable, purpose-built medical office asset in a supply-constrained market.
Key Highlights
- 21,249‑square‑foot medical office building on a 2.06‑acre parcel
- 18,153 SF main floor plus 3,096 SF rentable basement space
- Located in Grand Island’s established healthcare corridor within the Medical Park Third Subdivision
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
$279,186
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
8.46%
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%
$5,583,720
$5.6M
Cap Rate 7%
$3,988,371
$4.0M
Cap Rate 9%
$3,102,067
$3.1M
Market Conditions
NOI Build-Up for 21,249 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
$507.4K $23.88/SF
− Vacancy
−$42.1K −$1.98/SF
EGI
$465.3K $21.90/SF
− OpEx
−$186.1K −$8.76/SF
NOI
$279.2K $13.14/SF
Area
Hall County, NE
Vacancy
8.30%
Lease Rate
$23.88 /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%
$5,583,720
Cap Rate 7%
$3,988,371
Cap Rate 9%
$3,102,067
Alternative Uses
Best Use
Healthcare Medical
$3.99M
$3.49M – $4.65M
NOI $279,186 @ 7.0% cap · market cap 8.46%
Second Best
Office B
$3.98M
$3.49M – $4.65M
NOI $278,835 @ 7.0% cap · market cap 8.45%
Theoretical Best
Office A
$5.32M
$4.65M – $6.20M
NOI $372,248 @ 7.0% cap · market cap 11.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
861
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 68803, NE
26,487
Population
11,188
Households
2.4
Avg Household Size
38
Median Age
25%
College-Educated
87%
High-School Grad
86.9 sq mi
ZIP Area
305
Density / Sq Mi
$70,040
Median Household Income
$44,795
Median Earnings
$888
Median Rent
$224,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Large medical office building on a 2.06-acre parcel with main-floor and rentable basement space.
Where is this medical office space located?
The property is located at 729 N Custer Ave Grand Island, NE.
What is the asking price?
The asking price for this property is $3,299,999.
What are key features of this property?
This property features: 21,249‑square‑foot medical office building on a 2.06‑acre parcel; 18,153 SF main floor plus 3,096 SF rentable basement space; Located in Grand Island’s established healthcare corridor within the Medical Park Third Subdivision
