Updated Medical Office For
For Sale
$400,000
604 S Frederick Ave Unit 23, Gaithersburg, MD 20877
Move-in ready medical office in Montgomery County, Maryland.
Property Size940 SF
Price / SF$425.53
Days on Market184
Property Features for 604 S Frederick Ave Unit 23
General Information
Standard status
Active
Size
940 SF
Building Details
Year Built
1963
Listing Agency:
HelpAmerica Properties
Listed By:
Sherwin L Wells · License #582915
(202) 946-0901
Source:
Dhgsells
Added: Mar 5
Changed: Sep 3
Last Checked: Sep 5 at 12:09PM
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 HelpAmerica Properties
Investment Insights
Based on property information with market context.
This recently updated medical office is available for immediate sale, suitable for a medical professional or business seeking to establish operations in Montgomery County, Maryland. The property is conveniently located along MD-355 and Deer Park Road, with access to Ride-On Public Transportation Bus Routes and proximity to Shady Grove Hospital. This presents an excellent opportunity to establish a practice or professional office with minimal startup cost. The space is move-in ready and currently configured as a medical office. It is an ideal location for solo medical practitioners or an office professional, and could suit a doctor, lawyer, accountant, or other business professional.
Key Highlights
- Move‑in ready, recently updated medical office space.
- Excellent location along MD‑355 and Deer Park Road.
- Close proximity to Shady Grove Hospital.
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
$14,783
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
3.70%
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%
$295,660
$295.7K
Cap Rate 7%
$211,186
$211.2K
Cap Rate 9%
$164,256
$164.3K
Market Conditions
NOI Build-Up for 940 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
$30.3K $32.28/SF
− Vacancy
−$5.7K −$6.07/SF
EGI
$24.6K $26.21/SF
− OpEx
−$9.9K −$10.48/SF
NOI
$14.8K $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%
$295,660
Cap Rate 7%
$211,186
Cap Rate 9%
$164,256
Alternative Uses
Best Use
Healthcare Medical
$211.2K
$184.8K – $246.4K
NOI $14,783 @ 7.0% cap · market cap 3.70%
Second Best
Office B
$164.1K
$143.6K – $191.5K
NOI $11,488 @ 7.0% cap · market cap 2.87%
Theoretical Best
Specialty Retail
$330.7K
$289.3K – $385.8K
NOI $23,147 @ 7.0% cap · market cap 5.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
637
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 20877, MD
37,577
Population
13,599
Households
2.8
Avg Household Size
36
Median Age
35%
College-Educated
76%
High-School Grad
5.6 sq mi
ZIP Area
6,710
Density / Sq Mi
$86,103
Median Household Income
$39,341
Median Earnings
$1,862
Median Rent
$462,500
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?
Medical Office Space - Move-in ready medical office in Montgomery County, Maryland.
Where is this medical office space located?
The property is located at 604 S Frederick Ave Unit 23 Gaithersburg, MD.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Move‑in ready, recently updated medical office space.; Excellent location along MD‑355 and Deer Park Road.; Close proximity to Shady Grove Hospital.
