Second-Floor Medical Office
For Sale
Contact for pricing
14816 Physicians Ln, Rockville, MD 20850
Move-in ready second-floor condo with reception, four rooms, kitchen, bathroom, and utility/storage areas.
Property Size983 SF
Price / SF$305.09
Days on Market286
Property Features for 14816 Physicians Ln
General Information
Standard status
Active
Size
983 SF
Class
C
Property subtype
Office
Zoning
CR allows medical, office and retail uses.
Investment Type
Owner/User
Building Details
Year Built
1984
Buildings
1
Stories
2
Units
1
Listing Agency:
Terring Wang Group
Listed By:
Terring Wang · License #md639378
Source:
Crexi
Added: Nov 18, 2025
Changed: Aug 8
Last Checked: Aug 31 at 6:30AM
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 Terring Wang Group
Investment Insights
Based on property information with market context.
Located in the Shady Grove Professional Center, this second-floor commercial condo is well suited for medical or professional use. The space includes a spacious reception area, four rooms with ample natural light, plus a storage room, kitchen, bathroom, and utility room. The unit is currently vacant and described as move-in ready, having been previously used as a doctor’s office.
The property is positioned in a professional center primarily occupied by physician, dental, and chiropractic practices. It sits across from Children’s Hospital and CVS Pharmacy and is noted as being conveniently close to the new Trader Joe’s shopping plaza and Johns Hopkins University. The complex states there are no restrictions on the type of business allowed.
With its combination of patient-facing reception space, multiple private rooms, and essential back-of-house components like a utility and storage area, the layout supports a range of office operations consistent with its medical and professional history.
The property is positioned in a professional center primarily occupied by physician, dental, and chiropractic practices. It sits across from Children’s Hospital and CVS Pharmacy and is noted as being conveniently close to the new Trader Joe’s shopping plaza and Johns Hopkins University. The complex states there are no restrictions on the type of business allowed.
With its combination of patient-facing reception space, multiple private rooms, and essential back-of-house components like a utility and storage area, the layout supports a range of office operations consistent with its medical and professional history.
Key Highlights
- Second‑floor commercial condo in the Shady Grove Professional Center, built in 1984
- Move‑in ready unit formerly used as a doctor’s office and currently vacant
- Features a spacious reception area plus four rooms with ample natural light
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
$15,459
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
5.15%
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%
$309,180
$309.2K
Cap Rate 7%
$220,843
$220.8K
Cap Rate 9%
$171,767
$171.8K
Market Conditions
NOI Build-Up for 983 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
$31.7K $32.28/SF
− Vacancy
−$6.0K −$6.07/SF
EGI
$25.8K $26.21/SF
− OpEx
−$10.3K −$10.48/SF
NOI
$15.5K $15.73/SF
Area
Montgomery County, MD
Vacancy
18.80%
Lease Rate
$32.28 /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%
$309,180
Cap Rate 7%
$220,843
Cap Rate 9%
$171,767
Alternative Uses
Best Use
Healthcare Medical
$220.8K
$193.2K – $257.7K
NOI $15,459 @ 7.0% cap · market cap 5.15%
Second Best
Office B
$171.6K
$150.2K – $200.2K
NOI $12,014 @ 7.0% cap · market cap 4.01%
Theoretical Best
Specialty Retail
$345.8K
$302.6K – $403.4K
NOI $24,206 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
866
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 20850, MD
51,045
Population
22,468
Households
2.3
Avg Household Size
41
Median Age
67%
College-Educated
94%
High-School Grad
14.1 sq mi
ZIP Area
3,620
Density / Sq Mi
$122,691
Median Household Income
$77,679
Median Earnings
$2,277
Median Rent
$687,200
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 - Move-in ready second-floor condo with reception, four rooms, kitchen, bathroom, and utility/storage areas.
Where is this medical office space located?
The property is located at 14816 Physicians Ln Rockville, MD.
What is the asking price?
The asking price for this property is $299,900.
What are key features of this property?
This property features: Second‑floor commercial condo in the Shady Grove Professional Center, built in 1984; Move‑in ready unit formerly used as a doctor’s office and currently vacant; Features a spacious reception area plus four rooms with ample natural light
