Medical Office Space
For Sale
Contact for pricing
875 40th St, Ogden, UT
High-quality medical office space in a premium location.
Property Size20,540 SF
Lot Size2.45 Acres
Price / SF$238.56
Days on Market461
Property Features for 875 40th St
General Information
Standard status
Active
Size
20,540 SF
Lot size
2.45 Acres
Property subtype
OFFICE
Listing Agency:
Cushman & Wakefield | Salt Lake City
(801) 322-2000
Listed By:
Justin Bailey
(801) 303-5493
Source:
Moodyscre
Added: Jun 9, 2025
Changed: Aug 14
Last Checked: Sep 12 at 9:13AM
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 | Salt Lake City
Investment Insights
Based on property information with market context.
This property offers a fully built-out medical space that includes surgery rooms. It is located on Country Hills Drive (40th Street), a major retail and medical-office corridor experiencing 20,255 average daily vehicles. The property benefits from a substantial 4.67x parking ratio. Situated less than a quarter mile southeast of the property is the McKay-Dee Hospital, Intermountain Health’s 3rd-largest hospital. The surrounding area has strong demographics, with 59,221 households and median incomes of $78,080 within a 5-mile radius. The current tenant, Country Hills Eye Center, plans to sign a short-term extension of 4 to 6 months before vacating the property. This presents an opportunity for both owner-users and investors to secure medical office space in a premium location.
Key Highlights
- Fully built‑out medical space with surgery rooms, ready for immediate use
- Premium location on Country Hills Drive (40th Street), a major retail and medical‑office corridor with high traffic
- Proximity to McKay‑Dee Hospital, Intermountain Health’s 3rd‑largest hospital (less than a quarter mile)
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
$278,486
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
5.68%
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%
$5,569,720
$5.6M
Cap Rate 7%
$3,978,371
$4.0M
Cap Rate 9%
$3,094,289
$3.1M
Market Conditions
NOI Build-Up for 20,540 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
$515.1K $25.08/SF
− Vacancy
−$51.0K −$2.48/SF
EGI
$464.1K $22.60/SF
− OpEx
−$185.7K −$9.04/SF
NOI
$278.5K $13.56/SF
Area
Weber County, UT
Vacancy
9.90%
Lease Rate
$25.08 /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%
$5,569,720
Cap Rate 7%
$3,978,371
Cap Rate 9%
$3,094,289
Alternative Uses
Best Use
Healthcare Medical
$3.98M
$3.48M – $4.64M
NOI $278,486 @ 7.0% cap · market cap 5.68%
Second Best
Office B
$3.54M
$3.10M – $4.13M
NOI $248,034 @ 7.0% cap · market cap 5.06%
Theoretical Best
Office A
$4.74M
$4.15M – $5.53M
NOI $331,618 @ 7.0% cap · market cap 6.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,476
Businesses Nearby
Under-served
Demand for This Use
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - High-quality medical office space in a premium location.
Where is this medical office space located?
The property is located at 875 40th St Ogden, UT.
What is the asking price?
The asking price for this property is $4,900,000.
What are key features of this property?
This property features: Fully built‑out medical space with surgery rooms, ready for immediate use; Premium location on Country Hills Drive (40th Street), a major retail and medical‑office corridor with high traffic; Proximity to McKay‑Dee Hospital, Intermountain Health’s 3rd‑largest hospital (less than a quarter mile)
