How this compares to the market

Comps for micro-suites are thin

There isn't a deep, established market for this exact product — small private- practice suites of roughly 150 SF or less. Treat any figure below as directional, not a tight benchmark.

Where micro-unit comps do exist

Small units up to ~150 SF typically run $85–$110 per SF per year — noticeably higher per SF than standard office, because the fixed cost of building out many small rooms (doors, plumbing and electrical stubs, HVAC zoning) is large relative to the square footage.

Quick math check on this building

The second floor averages 5,000 SF ÷ 35 suites ≈ 143 SF per suite. At the current $975/mo base rent that's about $82/SF/yr — right at the low end of the $85–$110/SF micro-unit range, so the base-case rent assumption is reasonable but not aggressive.

Medical / professional office cap rates, 2026

Roughly 6.5%–8.5% for stabilized suburban assets — cap rates are driven by the building and income profile, not unit size, so this range still applies. Smaller secondary-market buildings like this one typically trade toward the wider, higher end of it.Source: CREG Healthcare and Sorso 2026 medical office cap rate reports

Sanity check before you commit

The assumed $150–$300/SF build-out and the exit cap rate used here should both be checked against the $85–$110/SF micro-unit rent range and the cap rate range above — and because New York often reassesses property tax on a sale or transfer, confirm the tax line with the town assessor before finalizing.