Two-Story Medical Office
For Sale
Contact for pricing
7434 PICARDY AVE, Baton Rouge, LA 70808
Two-story medical office building in the Baton Rouge Medical District, 100% leased to a behavioral health clinic.
Property Size5,800 SF
Price / SF$150.86
Days on Market45
Property Features for 7434 PICARDY AVE
General Information
Standard status
Active
Size
5,800 SF
Total Parking Spaces
27
Property subtype
Office
Zoning
C2
Occupancy
100%
Lease Type
Gross
Investment Type
Stabilized
Building Details
Year Built
1985
Year Renovated
2023
Buildings
1
Stories
2
Units
2
Tenancy
Single
Listing Agency:
Kurz & Hebert
Listed By:
Colin Smith · License #LA
(225) 925-0600
Source:
Crexi
Added: Jul 23
Changed: Sep 4
Last Checked: Sep 3 at 12:20PM
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 Kurz & Hebert
Investment Insights
Based on property information with market context.
Two-story office building inside the Baton Rouge Medical District, built in 1985. The property is 100% leased to a single tenant behavioral health clinic.
The current lease has two years remaining on the primary term, with an option to extend for an additional three years.
This configuration supports straightforward single-tenant operation with a defined near-term lease horizon and a tenant extension option.
The current lease has two years remaining on the primary term, with an option to extend for an additional three years.
This configuration supports straightforward single-tenant operation with a defined near-term lease horizon and a tenant extension option.
Key Highlights
- Two‑story medical office building built in 1985
- Located inside the Baton Rouge Medical District
- 100% leased to a single tenant behavioral health clinic
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
$55,833
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
6.38%
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%
$1,116,660
$1.1M
Cap Rate 7%
$797,614
$797.6K
Cap Rate 9%
$620,367
$620.4K
Market Conditions
NOI Build-Up for 5,800 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
$97.4K $16.80/SF
− Vacancy
−$4.4K −$0.76/SF
EGI
$93.1K $16.04/SF
− OpEx
−$37.2K −$6.42/SF
NOI
$55.8K $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%
$1,116,660
Cap Rate 7%
$797,614
Cap Rate 9%
$620,367
Alternative Uses
Best Use
Healthcare Medical
$797.6K
$697.9K – $930.6K
NOI $55,833 @ 7.0% cap · market cap 6.38%
Second Best
Office B
$792.5K
$693.5K – $924.6K
NOI $55,476 @ 7.0% cap · market cap 6.34%
Theoretical Best
Specialty Retail
$1.39M
$1.22M – $1.62M
NOI $97,233 @ 7.0% cap · market cap 11.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,620
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 70808, LA
32,510
Population
18,833
Households
1.7
Avg Household Size
35
Median Age
65%
College-Educated
97%
High-School Grad
12.0 sq mi
ZIP Area
2,709
Density / Sq Mi
$69,078
Median Household Income
$41,162
Median Earnings
$1,283
Median Rent
$392,600
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 - Two-story medical office building in the Baton Rouge Medical District, 100% leased to a behavioral health clinic.
Where is this medical office space located?
The property is located at 7434 PICARDY AVE Baton Rouge, LA.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Two‑story medical office building built in 1985; Located inside the Baton Rouge Medical District; 100% leased to a single tenant behavioral health clinic
