Medical Office Investment
For Sale
$875,000
896 S STATE STREET, Dover, DE 19901
Three-building parcel with office and medical space for sale.
Property Size3,310 SF
Days on Market128
Property Features for 896 S STATE STREET
General Information
Standard status
Active
Size
3,310 SF
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$4,539
Building Details
Building Size
3,310 SF
Year Built
1981
Listing Agency:
Keller Williams Realty Central-Delaware
(302) 562-8405
Listed By:
Elizabeth Johnson · License #RS-0024287
(302) 562-8405
Source:
Barnesrealestatecompany
Added: Apr 24
Changed: Aug 23
Last Checked: Aug 28 at 5:29PM
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 Keller Williams Realty Central-Delaware
Investment Insights
Based on property information with market context.
This property features a three-building parcel with existing tenants occupying one of the units. The property is suitable for office or medical office use, as cited by the City of Dover for 896 and 896A. It offers road frontage on a busy section of State Street. The property is positioned as an investment opportunity for those looking to run their own medical office. The bike score is 51, indicating it is bikeable. The walk score is 49, indicating car-dependent surroundings, and the transit score is 44, indicating some transit options are available.
Key Highlights
- Investment opportunity with tenant‑occupied unit providing immediate income.
- Prime location with great road frontage on busy State Street.
- Suitable for owner‑occupancy as a medical office.
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
$45,645
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
5.22%
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%
$912,900
$912.9K
Cap Rate 7%
$652,071
$652.1K
Cap Rate 9%
$507,167
$507.2K
Market Conditions
NOI Build-Up for 3,310 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
$85.0K $25.68/SF
− Vacancy
−$8.9K −$2.70/SF
EGI
$76.1K $22.98/SF
− OpEx
−$30.4K −$9.19/SF
NOI
$45.6K $13.79/SF
Area
Kent County, DE
Vacancy
10.50%
Lease Rate
$25.68 /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%
$912,900
Cap Rate 7%
$652,071
Cap Rate 9%
$507,167
Alternative Uses
Best Use
Healthcare Medical
$652.1K
$570.6K – $760.8K
NOI $45,645 @ 7.0% cap · market cap 5.22%
Second Best
Office B
$642.3K
$562.0K – $749.4K
NOI $44,963 @ 7.0% cap · market cap 5.14%
Theoretical Best
Office A
$833.5K
$729.3K – $972.4K
NOI $58,343 @ 7.0% cap · market cap 6.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,377
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19901, DE
36,839
Population
15,443
Households
2.4
Avg Household Size
34
Median Age
27%
College-Educated
89%
High-School Grad
75.8 sq mi
ZIP Area
486
Density / Sq Mi
$63,891
Median Household Income
$33,069
Median Earnings
$1,353
Median Rent
$258,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Three-building parcel with office and medical space for sale.
Where is this medical office space located?
The property is located at 896 S STATE STREET Dover, DE.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Investment opportunity with tenant‑occupied unit providing immediate income.; Prime location with great road frontage on busy State Street.; Suitable for owner‑occupancy as a medical office.
