Berlin Office Warehouse Investment
For Sale
$1,240,000
10545 Friendship Rd, Berlin, MD 21811
6,600 SF building with 4 units, ideal for investment.
Property Size6,600 SF
Price / SF$187.88
Days on Market273
Property Features for 10545 Friendship Rd
General Information
Standard status
Active
Size
6,600 SF
Class
A
Property subtype
Office
Building Details
Building Size
6,600 SF
Year Built
1999
Listing Agency:
Davis strategic
(703) 969-8825
Listed By:
Tonney Insley · License #MD #653457
(703) 969-8825
Source:
Svnmiller
Added: Nov 21, 2025
Changed: Aug 20
Last Checked: Aug 21 at 4:34AM
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 Davis strategic
Investment Insights
Based on property information with market context.
Located at 10545 Friendship Rd in Berlin, MD, this 6,600 SF building was constructed in 1999 and features 4 units. The property is zoned C1 and is suitable for office or office warehouse use, offering a versatile and flexible layout. Its location provides easy access to Ocean City, Salisbury, and the Metro Areas of DC and Baltimore. This well-maintained property is positioned to deliver a strong return on investment, making it an attractive prospect for investors seeking a promising addition to their portfolio.
Key Highlights
- 6,600 SF building featuring 4 units, ideal for office or office warehouse use.
- Zoned C1, offering flexibility for various business ventures.
- Prime location in the sought‑after Berlin, MD area.
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
$92,308
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
7.44%
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%
$1,846,160
$1.8M
Cap Rate 7%
$1,318,686
$1.3M
Cap Rate 9%
$1,025,644
$1.0M
Market Conditions
NOI Build-Up for 6,600 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
$146.5K $22.20/SF
− Vacancy
−$23.4K −$3.55/SF
EGI
$123.1K $18.65/SF
− OpEx
−$30.8K −$4.66/SF
NOI
$92.3K $13.99/SF
Area
Worcester County, MD
Vacancy
16.00%
Lease Rate
$22.20 /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%
$1,846,160
Cap Rate 7%
$1,318,686
Cap Rate 9%
$1,025,644
Alternative Uses
Best Use
Office B
$1.32M
$1.15M – $1.54M
NOI $92,308 @ 7.0% cap · market cap 7.44%
Second Best
Warehouse
$857.7K
$750.5K – $1.00M
NOI $60,036 @ 7.0% cap · market cap 4.84%
Theoretical Best
Office A
$1.59M
$1.39M – $1.85M
NOI $111,023 @ 7.0% cap · market cap 8.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
31
Businesses Nearby
Explore this area
Business Placement
Demographics for 21811, MD
23,907
Population
15,439
Households
1.5
Avg Household Size
52
Median Age
36%
College-Educated
94%
High-School Grad
101.5 sq mi
ZIP Area
236
Density / Sq Mi
$91,293
Median Household Income
$49,929
Median Earnings
$1,398
Median Rent
$362,500
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.
Frequently Asked Questions
What type of property is this?
Office building - 6,600 SF building with 4 units, ideal for investment.
Where is this office building located?
The property is located at 10545 Friendship Rd Berlin, MD.
What is the asking price?
The asking price for this property is $1,240,000.
What are key features of this property?
This property features: 6,600 SF building featuring 4 units, ideal for office or office warehouse use.; Zoned C1, offering flexibility for various business ventures.; Prime location in the sought‑after Berlin, MD area.
