Medical Office Space with Multiple
For Sale
$995,000
923 Broad Street, Durham, NC 27705
Corner-site property with renovation work underway and plans prepared for a contemporary medical office.
Property Size4,958 SF
Days on Market68
Property Features for 923 Broad Street
General Information
Standard status
Active
Size
4,958 SF
Class
B
Property subtype
Office
Building Details
Building Size
4,958 SF
Year Built
1963
Buildings
1
Listing Agency:
(919) 225-4778
Listed By:
Chris Burnham
(919) 225-4778
Source:
Maverickpartners
Added: Jun 25
Changed: Aug 30
Last Checked: Aug 30 at 5:05PM
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 Chris Burnham
Investment Insights
Based on property information with market context.
This free-standing medical office property occupies a corner site and includes multiple entrances that support flexible interior division. Renovation work is underway, with demolition completed. Design concepts, architectural drawings, and a site plan are available for a contemporary medical office buildout. The building was constructed in 1963 and includes substantial on-site parking.
The property is located at 923 Broad Street in Durham, near Duke East Campus, Ninth Street, and Downtown Durham. Its setting provides proximity to these established destinations while retaining a standalone building configuration. The existing entrances and completed preliminary work provide a defined starting point for continued renovation and potential subdivision.
The property is located at 923 Broad Street in Durham, near Duke East Campus, Ninth Street, and Downtown Durham. Its setting provides proximity to these established destinations while retaining a standalone building configuration. The existing entrances and completed preliminary work provide a defined starting point for continued renovation and potential subdivision.
Key Highlights
- Free‑standing medical office property on a corner site
- Multiple entrances support potential subdivision into separate areas
- Demolition is complete and renovation work is underway
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
$76,571
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
7.70%
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%
$1,531,420
$1.5M
Cap Rate 7%
$1,093,871
$1.1M
Cap Rate 9%
$850,789
$850.8K
Market Conditions
NOI Build-Up for 4,958 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
$123.8K $24.96/SF
− Vacancy
−$21.7K −$4.37/SF
EGI
$102.1K $20.59/SF
− OpEx
−$25.5K −$5.15/SF
NOI
$76.6K $15.44/SF
Area
Durham, NC
Vacancy
17.50%
Lease Rate
$24.96 /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%
$1,531,420
Cap Rate 7%
$1,093,871
Cap Rate 9%
$850,789
Alternative Uses
Best Use
Office B
$1.09M
$957.1K – $1.28M
NOI $76,571 @ 7.0% cap · market cap 7.70%
Second Best
Healthcare Medical
$1.06M
$923.7K – $1.23M
NOI $73,894 @ 7.0% cap · market cap 7.43%
Theoretical Best
Office A
$1.60M
$1.40M – $1.87M
NOI $112,070 @ 7.0% cap · market cap 11.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,258
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 27705, NC
50,472
Population
24,108
Households
2.1
Avg Household Size
34
Median Age
62%
College-Educated
91%
High-School Grad
42.1 sq mi
ZIP Area
1,199
Density / Sq Mi
$71,153
Median Household Income
$43,138
Median Earnings
$1,422
Median Rent
$398,500
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 - Corner-site property with renovation work underway and plans prepared for a contemporary medical office.
Where is this medical office space located?
The property is located at 923 Broad Street Durham, NC.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: Free‑standing medical office property on a corner site; Multiple entrances support potential subdivision into separate areas; Demolition is complete and renovation work is underway
