Lenexa Medical Office Building For
For Sale
Contact for pricing
8700 Bourgade St, Lenexa, KS 66219
Single-story medical office building in Lenexa, Kansas. 100% occupied.
Property Size13,430 SF
Lot Size1.62 Acres
Price / SF$279.23
Days on Market193
Property Features for 8700 Bourgade St
General Information
Standard status
Active
Size
13,430 SF
Total Parking Spaces
61
Lot size
1.62 Acres
Property subtype
Office
Zoning
Planned Neighborhood Office (NPO)
Occupancy
100%
Investment Type
Owner/User
Building Details
Year Built
1988
Year Renovated
2021
Stories
1
Tenancy
Multi
Listing Agency:
Cushman & Wakefield - Kansas City, Missouri
(816) 221-2200
Listed By:
Suzanne Dimmel · License #KS
Source:
Crexi
Added: Jan 30
Changed: Aug 8
Last Checked: Aug 9 at 9:25AM
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 Cushman & Wakefield - Kansas City, Missouri
Investment Insights
Based on property information with market context.
The property at 8700 Bourgade is a single-story medical office building with 13,430 rentable square feet on a 1.62-acre site. Zoned as Planned Neighborhood Office (NPO), the building features drive-up convenience and a surface parking lot with 61 spaces. Originally built in 1988, the building was purchased in 2021 and transformed into a fully occupied, four-tenant property. Over $1.1 million has been invested in tenant improvements during the last 24 months, exclusive of tenant contributions. The tenant base includes three dental specialties: Pediatric Dentistry, Periodontics, and Orthodontics, representing approximately 89% of the building’s occupancy. These tenants signed 10-year leases in 2024-2025 with multiple renewal options. Located just east of Interstate 435 and 87th Street in Lenexa, near Lenexa City Center, the property is situated in an affluent area with upper-end housing and mixed-use projects, including recently constructed medical office space. The 87th Street Corridor between Quivira Rd and I-435 is developed with retailers, restaurants, churches, public parks, and schools. The population density within a one-mile radius is almost 5,000 people per-square-mile, totaling 7,200 households. Next door is Sonoma Plaza, an 85-acre mixed-use development with luxury apartments, retail shopping, and restaurants, including McKeever’s Grocery Market, Starbucks, and Chick-fil-A. Average household income ranges from $116,000 to $119,000 within a five-mile radius and is projected to rise by 2029.
Key Highlights
- 100% occupied medical office building with a strong tenant base.
- Long‑term leases in place providing stable income.
- Significant capital investment of over $1.1 million in tenant improvements.
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
$185,192
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
4.94%
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%
$3,703,840
$3.7M
Cap Rate 7%
$2,645,600
$2.6M
Cap Rate 9%
$2,057,689
$2.1M
Market Conditions
NOI Build-Up for 13,430 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
$309.4K $23.04/SF
− Vacancy
−$62.5K −$4.65/SF
EGI
$246.9K $18.39/SF
− OpEx
−$61.7K −$4.60/SF
NOI
$185.2K $13.79/SF
Area
Johnson County, KS
Vacancy
20.20%
Lease Rate
$23.04 /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%
$3,703,840
Cap Rate 7%
$2,645,600
Cap Rate 9%
$2,057,689
Alternative Uses
Best Use
Office B
$2.65M
$2.31M – $3.09M
NOI $185,192 @ 7.0% cap · market cap 4.94%
Second Best
Healthcare Medical
$2.48M
$2.17M – $2.90M
NOI $173,774 @ 7.0% cap · market cap 4.63%
Theoretical Best
Office A
$3.25M
$2.84M – $3.79M
NOI $227,522 @ 7.0% cap · market cap 6.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
484
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 66219, KS
13,378
Population
7,044
Households
1.9
Avg Household Size
36
Median Age
55%
College-Educated
98%
High-School Grad
8.3 sq mi
ZIP Area
1,612
Density / Sq Mi
$91,144
Median Household Income
$59,148
Median Earnings
$1,458
Median Rent
$370,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Single-story medical office building in Lenexa, Kansas. 100% occupied.
Where is this medical office space located?
The property is located at 8700 Bourgade St Lenexa, KS.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: 100% occupied medical office building with a strong tenant base.; Long‑term leases in place providing stable income.; Significant capital investment of over $1.1 million in tenant improvements.
