Medical Office Income Calculator
The formula
What the the defensive asset class tells you
Medical office (MOBC): outpatient health systems on 10-year leases with heavy fit-out; recession-insensitive demand.
Calculation: NOI = sf × psf × (1 − opex); value via cap + reversion of credit. Enter your inputs and every substitution is shown below the result.
Reading the result
22k sf at 34/sf with 34% opex is 500k NOI — near 6.5 cap prices the stickiness.
Rules of thumb: MOBC rents 28–45/sf; caps 5.5–7%
Limitations and best practice
Anchored buildings (hospital systems) vs standalone doctor pockets have wildly different downtime risk.
This calculator gives an estimate based on standard formulas; it is not professional financial, medical, legal or engineering advice. Verify anything you plan to act on with a qualified professional and your own records.
Frequently asked questions
Why high opex?
What is WALT here?
Best sub-type?
Source & methodology
HTA/realtor.com MOBC market report.
How Medical Office Income works — and what your result really means
You want to know where you stand, and a computed figure beats a remembered one every time. Medical Office Income is the kind of number people argue about from memory. This page ends that argument with arithmetic you can watch happen: enter your figures, get Annual NOI in real time, and see every substitution printed below.
Most confusion about Medical Office Income comes from mixing up the input you control with the input you merely observe. The formula treats them identically, but your decisions should not: one deserves measurement, the other deserves a defensible estimate.
Like most useful measures, Medical Office Income is a summary, and summaries hide as much as they reveal. The companion outputs and the input table are here to reopen what the headline compressed.
What makes a calculation page trustworthy is that its copy is derived from its own arithmetic: here annual NOI = $509,007, recomputed every time a field changes, and the sensitivity section ranks the inputs that move the result — Leasable sf first, at ≈10.0 % of the headline for a ten-percent error either way in that input — which is the thread the rest of this guide pulls on.
Every input in Medical Office Income, and what it does to the answer
The engine implements a single stated model: NOI = sf × psf × (1 − opex); value via cap + reversion of credit. There is no hidden coefficient and no login-gated precision — the formula printed is the formula executed, which is also what makes the result citable.
Leasable sf (example value 22,683) is a plain measured quantity — the unit shown in the label is the unit the formula expects. If you are unsure what belongs in this field, look at the printed steps: the substitution shows exactly how the engine uses it.
Net rent $/sf/yr (example value 34) is a numeric input whose unit is fixed by the label; a wrong unit is a wrong answer wearing a plausible disguise. Replace the example with the figure from your own records — the tool recomputes instantly and the printed steps follow your numbers.
Opex % (MOBC high-fit) (example value 34) is a measured number in the unit named by the label; the formula does not convert for you. Rates are the most mis-transcribed input on any page like this; copy it from the document rather than retyping from memory.
Tenant credit/sf amortized ($) (example value 42) is a plain measured quantity — the unit shown in the label is the unit the formula expects. The example value is there to demonstrate the mechanics, not to describe your situation — overwrite it.
Weighted avg term (yrs) (example value 9) is a plain measured quantity — the unit shown in the label is the unit the formula expects. If you are unsure what belongs in this field, look at the printed steps: the substitution shows exactly how the engine uses it.
The default Medical Office Income calculation, written out in full
The tool prints its own working; this is the same arithmetic on the example values, reproduced so you can follow it by hand. Starting figures: Leasable sf, Net rent $/sf/yr, Opex % (MOBC high-fit), Tenant credit/sf amortized ($). The computed annual NOI comes out at $509,007, which the interpretation band labels “MOBC out-earns general office because of sticky clinical tenancy — the $952,686 fit-out credit is the entry ticket; WALT of 9 is what the cap rate pays for”.
- $34.00 × 22,683 × 66% = $509,007
- − 42/sf credit ÷ 9y → effective
- Cap frame = $7,830,870
Gross rent — $771,222. If your inputs change, this is usually the first companion figure to move.
TI/debt of entry — $952,686. If your inputs change, this is usually the first companion figure to move.
Value at 6.5% cap — $7,830,870. If your inputs change, this is usually the first companion figure to move.
Effective rent after credit — 17.77 $/sf. This is the number experienced users quote when the headline alone would mislead.
Overwrite any input above and every line of this example updates with it — the substitution is live, not a screenshot of somebody else’s numbers.
Scenario table: Medical Office Income at ±10 % and ±20 % of the key input
The honest version of any estimate is a corridor, and this one is cheap to produce: Medical Office Income was recomputed at 5 points along the dominant input, with every other field left untouched.
| Leasable sf setting | Annual NOI |
|---|---|
| 80 % of the example value | $407,205 |
| 90 % of the example value | $458,106 |
| example inputs | $509,007 |
| 110 % of the example value | $559,907 |
| 120 % of the example value | $610,808 |
The corridor runs from $407,205 to $610,808 across that band — which is the range worth planning inside rather than the single $509,007 point estimate. Reproduce it in the form above by editing Leasable sf alone; the substitution steps will follow your figures exactly.
Where Medical Office Income is fragile — and where it is not
Nobody should have to guess which input matters. The engine was re-run once per field below — ten percent up, ten percent down, everything else frozen — and the results ranked by how far they moved the annual NOI. It is the fastest honest answer to “what matters most in Medical Office Income?” — and it is specific to these defaults, because sensitivity moves with the starting point.
- Nudge Leasable sf by ±10 % and Medical Office Income lands between $458,106 and $559,907 (sensitivity ≈10.0 %)
- Net rent $/sf/yr: ten percent up gives $559,907, ten percent down gives $458,106 — ≈10.0 % of the annual NOI either way
- Opex %: ten percent up gives $482,785, ten percent down gives $535,228 — ≈5.2 % of the annual NOI either way
Leasable sf is the dominant lever here: ten percent either way moves the result by about 10.0 %, from $458,106 to $559,907. Spend your verification effort there first, and Net rent $/sf/yr is effectively tied with it (≈10.0 % for the same nudge), so verify the pair together. Everything below that can stay approximate, which is a licence to stop chasing data that would not change the decision.
Interpreting the Medical Office Income verdict
A number on its own is trivia; a number against a range is intelligence. On the example inputs the band reads “MOBC out-earns general office because of sticky clinical tenancy — the $952,686 fit-out credit is the entry ticket; WALT of 9 is what the cap rate pays for”; your own figures place you on a different rung of the same ladder. How much of that band is luck? On Leasable sf alone ten percent either way covers $458,106 to $559,907. The practical reading rules: ask what would have to change to move you one band. If the answer is “a small, plausible input difference”, the band itself is not the finding — the uncertainty is.
Related measures answer related questions, and the distinctions matter: Medical Office Income is the quantity, Annual NOI is this tool’s reading of it, and the decision that follows belongs to neither of them separately.
Why Medical Office Income results go wrong — and how to prevent it
Anchored buildings (hospital systems) vs standalone doctor pockets have wildly different downtime risk. This calculator gives an estimate based on standard formulas; it is not professional financial, medical, legal or engineering advice. Verify anything you plan to act on with a qualified professional and your own records.
Chasing precision in Net rent $/sf/yr while Leasable sf is still a guess. The sensitivity ranking above shows exactly where the accuracy budget should go.
One mistake is specific to this engine: assuming every input matters equally. The computation above shows Leasable sf dominating — a careful figure there beats false precision everywhere else.
Another is comparing across contexts: a Medical Office Income computed with one set of conventions should never be lined up against a figure computed with another. Check the inputs behind both before ranking them.
A quick check for any Medical Office Income figure
- Check that every field the formula needs actually arrived from a document, not from recollection.
- Record the date and the inputs alongside the number so future-you knows what was assumed.
- Re-verify Leasable sf against a source document — ten percent of error there moves the headline by ≈10.0 %.
- State, in one sentence, which convention each rate, unit or period in the form is using.
- Compare the result with one independent method or published benchmark.
- Repeat the ±10 % test on the inputs that matter and see whether the decision — not just the number — still holds.
Step by step: getting a trustworthy Medical Office Income out of this tool
The tool does the arithmetic; the routine below is what makes the arithmetic trustworthy. Five steps, a minute total — and afterwards you will know not just what the number is, but which assumption produced it.
Step 1 — collect, then type. Everything this tool asks for is listed above (leasable sf, net rent $/sf/yr, opex % (mobc high-fit), tenant credit/sf amortized ($), weighted avg term (yrs)). Pull each figure from something you can point at — paperwork, a dashboard, a label — before touching a field. Guesswork at the input stage cannot be repaired at the interpretation stage. A calculation you cannot explain to somebody else is a calculation you cannot defend.
Step 2 — compute the version you would not be embarrassed by. If a stranger audited your inputs, which set would you hand over? Enter that set, read the result, and treat everything else as upside. The inputs are the part of the work that nobody else can do for you.
Step 3 — isolate your variables. Change one field, observe, revert. The live sensitivity list does the ranking for the default inputs; verify it against your own, because dominance shifts when the starting point shifts. When two sources disagree, it is almost never the arithmetic that differs.
Step 4 — stress before you commit. A decision that survives a ten-percent squeeze on its two biggest inputs needs no luck to be sound. One that does not survive is a decision about hope, not about arithmetic. Rounding early is the quietest way to introduce a permanent error.
Step 5 — save the story with the figure. A number without its inputs and its date is unusable within a quarter. Record $509,007, the assumptions behind it, and today’s date; your future self will be auditing a stranger’s arithmetic. When in doubt, prefer the boring input: the interesting one is usually the one you misread.
Who actually uses Medical Office Income — and when
Numbers earn their keep in conversations, and Medical Office Income is no exception. In Real Estate & Property discussions around Commercial Real Estate, this figure decides whether an option stays on the table: it converts an opinionated debate into an arithmetic one, and arithmetic is the only referee both sides accept. Repeating a calculation with the same numbers proves only that the arithmetic is reliable — which is worth knowing.
Used properly this is a five-minute filter that saves weeks. Compute Medical Office Income, reject what fails, and only then bring in the expensive analysis for the survivors. Write the figure down before moving on; memory flatters whichever number you saw last.
Nothing here is stored or transmitted, so the habit of checking is free: open the page, re-enter current figures, compare with the number you saved last time. Say the answer out loud before you save it; if it sounds wrong, the model did not change, your understanding did.
Medical Office Income — frequently asked questions
What affects Medical Office Income the most?
The short answer: Leasable sf. The longer answer is the sensitivity table on this page, where every numeric input was probed by ten percent and the annual NOI recalculated — Leasable sf moved it furthest, by roughly 10.0 % ($458,106 to $559,907).
Do net rent $/sf/yr and leasable sf matter equally?
Medical Office Income here is co-driven: Leasable sf and Net rent $/sf/yr produced ≈10.0 % and ≈10.0 % responses, which is a tie for practical purposes. Everything below those two is a rounding error by comparison.
What is a typical Medical Office Income?
There is no honest universal average for Medical Office Income, but there is a reference point: the defaults on this page produce $509,007 (MOBC out-earns general office because of sticky clinical tenancy — the $952,686 fit-out credit is the entry ticket; WALT of 9 is what the cap rate pays for). Replace the inputs with your own and compare — that comparison is the useful meaning of “typical”.
How do I calculate Medical Office Income by hand?
Use the stated model — NOI = sf × psf × (1 − opex); value via cap + reversion of credit — and substitute in the order the tool prints (it starts from $34.00 × 22,683 × 66% = $509,007). On the example inputs the hand route lands on $509,007, exactly what the calculator shows. A spreadsheet reproduces it in two or three cells; doing it once by hand is what makes the automated answer trustworthy.
What happens to Medical Office Income if leasable sf changes by 10 %?
The engine was re-run with that field moved by ten percent while everything else stayed fixed: the annual NOI goes across $458,106 to $559,907, a swing of roughly 10.0 % around the $509,007 baseline. That ratio is the practical definition of how much this input matters.
Is the Medical Office Income result of $509,007 good or bad?
Good and bad are comparisons, so the honest test is three questions: where does your own Medical Office Income sit against the $509,007 reference above, how far would a plausible input error move it (≈10.0 % per ten percent on Leasable sf), and what does the alternative option compute to?
What affects Medical Office Income the most?
Sensitivity depends on where you start, but the inputs Leasable sf and Net rent $/sf/yr typically move Medical Office Income further than the rest because they enter the formula multiplicatively. If you can only measure two things well, measure those and hold the others at conservative defaults.
How do I calculate Medical Office Income manually?
Write down the inputs, then follow the printed steps in order — NOI = sf × psf × (1 − opex); value via cap + reversion of credit. A spreadsheet replicates it with two or three cells. The manual route is worth doing once to build intuition; after that the calculator saves time and eliminates transcription slips.
Why high opex?
Clinical plumbing, HVAC redundancy and exam build-outs inflate CAM; the rent pays for it.
What is WALT here?
Weighted avg lease term, often 8–12 — the longer the medical, the tighter the cap.
Does this Medical Office Income tool store my numbers?
No. The entire calculation runs in your browser session; nothing entered above is transmitted or saved, which is the correct behaviour for sensitive Real Estate & Property figures and the reason you can re-run this page as often as you like.
Key terms on this page
- Gross rent
- $771,222 on the example inputs — a companion figure printed beside the headline of Medical Office Income so that no result is read in isolation.
- TI/debt of entry
- $952,686 for the Medical Office Income worked case; it sits next to the main result because it carries context the headline leaves out.
- Value at 6.5% cap
- $7,830,870 for the Medical Office Income worked case; it sits next to the main result because it carries context the headline leaves out.
- Annual NOI
- The primary output of this tool: $509,007 for the default inputs, computed exactly from NOI = sf × psf × (1 − opex); value via cap + reversion of credit.
- Worked example
- The step-by-step substitution printed above, so the arithmetic can be re-derived by hand or in a spreadsheet.
- Verdict band
- A named zone on the range of plausible results; the example inputs land in “MOBC out-earns general office because of sticky clinical tenancy — the $952,686 fit-out credit is the entry ticket; WALT of 9 is what the cap rate pays for”, and your inputs may not.
- Sensitivity (±10 %)
- How far the Medical Office Income moves when a single input is nudged ten percent either way; the ranked list on this page is computed live from this engine.
Methodology, sources and limits
Everything above runs on one stated formula, applied without hidden coefficients: NOI = sf × psf × (1 − opex); value via cap + reversion of credit. Source of record: HTA/realtor.com MOBC market report. Specialist software layers extra coefficients on top of the same algebra; none are hidden here, and that transparency is what makes a disagreement traceable to a specific input instead of a black box.
This page is an estimation aid, not professional advice. The design rule is simple: two people entering identical figures must get identical answers. Nothing is smoothed, weighted or adjusted behind the scenes; where judgement enters, this page says so and names the input responsible.
Turning this Medical Office Income into a decision
Re-measure on a second occasion before changing behaviour; single readings carry natural day-to-day variation.
This page was written for people checking a personal health figure before acting on it, and the promise is that nothing above required trust. Bookmark the tool, re-run it whenever an input moves by more than a few percent, and keep the date with the number.