Medical Office Investment
For Sale
Contact for pricing
Pending
800 Health Services Dr, Seaford, DE 19973
4,800 SF Medical office Building occupied by nationally recognized tenant.
Property Size4,800 SF
Days on Market1209
Property Features for 800 Health Services Dr
General Information
Standard status
Pending
Size
4,800 SF
Class
A
Property subtype
Office
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$81,480
Building Details
Year Built
2021
Tenancy
Single
Listing Agency:
NAI Coastal
Listed By:
Shelby Tomlinson · License #MD 5008965
(443) 366-2521
Source:
Crexi
Added: May 15, 2023
Changed: Aug 14
Last Checked: Sep 2 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 NAI Coastal
Investment Insights
Based on property information with market context.
This is a 4,800 square foot medical office building, constructed in 2021. The property is currently occupied by a nationally recognized tenant under a NNN lease. The current lease is set to expire on December 31, 2028, and includes annual rent increases of 3%, along with two 3-year options. The property is situated in an established medical corridor, near Tidal Health Hospital, family dentistry practices, and various other medical and professional offices, making it a stable location for medical services.
Key Highlights
- Stable, long‑term investment with a nationally recognized tenant and NNN lease expiring 12/31/28.
- Annual 3% rent increases provide consistent income growth.
- Two 3‑year options offer potential for extended lease term.
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
$75,345
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
6.03%
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%
$1,506,900
$1.5M
Cap Rate 7%
$1,076,357
$1.1M
Cap Rate 9%
$837,167
$837.2K
Market Conditions
NOI Build-Up for 4,800 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
$123.3K $25.68/SF
− Vacancy
−$22.8K −$4.75/SF
EGI
$100.5K $20.93/SF
− OpEx
−$25.1K −$5.23/SF
NOI
$75.3K $15.70/SF
Area
Sussex County, DE
Vacancy
18.50%
Lease Rate
$25.68 /SF/Yr
Expense Ratio
25.00%
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%
$1,506,900
Cap Rate 7%
$1,076,357
Cap Rate 9%
$837,167
Alternative Uses
Best Use
Office B
$1.08M
$941.8K – $1.26M
NOI $75,345 @ 7.0% cap · market cap 6.03%
Second Best
Healthcare Medical
$967.7K
$846.7K – $1.13M
NOI $67,738 @ 7.0% cap · market cap 5.42%
Theoretical Best
Office A
$1.32M
$1.15M – $1.54M
NOI $92,333 @ 7.0% cap · market cap 7.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
565
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 19973, DE
25,550
Population
10,725
Households
2.4
Avg Household Size
42
Median Age
18%
College-Educated
84%
High-School Grad
84.0 sq mi
ZIP Area
304
Density / Sq Mi
$62,668
Median Household Income
$36,439
Median Earnings
$1,131
Median Rent
$254,300
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 - 4,800 SF Medical office Building occupied by nationally recognized tenant.
Where is this medical office space located?
The property is located at 800 Health Services Dr Seaford, DE.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Stable, long‑term investment with a nationally recognized tenant and NNN lease expiring 12/31/28.; Annual 3% rent increases provide consistent income growth.; Two 3‑year options offer potential for extended lease term.
