Medical Office Suite For
For Sale
$205,000
438 N Frederick Ave Unit 320, Gaithersburg, MD 20877
Small office suite with reception, offices, and kitchenette.
Property Size697 SF
Price / SF$294.12
Days on Market178
Property Features for 438 N Frederick Ave Unit 320
General Information
Standard status
Active
Size
697 SF
Building Details
Year Built
2022
Listing Agency:
Century 21 Redwood Realty
Listed By:
Melissa M Atherholt · License #RSR003093
(301) 208-2288
Source:
Kandorre
Added: Mar 12
Changed: Aug 23
Last Checked: Sep 5 at 9:40AM
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 Century 21 Redwood Realty
Investment Insights
Based on property information with market context.
This is a small suite suitable for various businesses. The space is built out into several small offices and a reception area. It was previously used as a wellness center or medical office. The suite includes a windowed reception and administrative area, a lobby, three offices, and a small kitchenette with a refrigerator. There are two to three windowed offices and one interior office. Ample free parking is available for employees and clients. The Homeowner Association (HOA) fee is approximately $637 per year.
Key Highlights
- Move‑in ready small office suite, previously used as a wellness/medical office.
- Built‑out with reception area, lobby, 3 offices (2‑3 with windows), and kitchenette.
- Ample free parking for employees and clients.
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
$10,962
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
5.35%
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%
$219,240
$219.2K
Cap Rate 7%
$156,600
$156.6K
Cap Rate 9%
$121,800
$121.8K
Market Conditions
NOI Build-Up for 697 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
$22.5K $32.28/SF
− Vacancy
−$4.2K −$6.07/SF
EGI
$18.3K $26.21/SF
− OpEx
−$7.3K −$10.48/SF
NOI
$11.0K $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%
$219,240
Cap Rate 7%
$156,600
Cap Rate 9%
$121,800
Alternative Uses
Best Use
Healthcare Medical
$156.6K
$137.0K – $182.7K
NOI $10,962 @ 7.0% cap · market cap 5.35%
Second Best
Office B
$121.7K
$106.5K – $142.0K
NOI $8,518 @ 7.0% cap · market cap 4.16%
Theoretical Best
Specialty Retail
$245.2K
$214.5K – $286.1K
NOI $17,163 @ 7.0% cap · market cap 8.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,410
Businesses Nearby
Well-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
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Small office suite with reception, offices, and kitchenette.
Where is this medical office space located?
The property is located at 438 N Frederick Ave Unit 320 Gaithersburg, MD.
What is the asking price?
The asking price for this property is $205,000.
What are key features of this property?
This property features: Move‑in ready small office suite, previously used as a wellness/medical office.; Built‑out with reception area, lobby, 3 offices (2‑3 with windows), and kitchenette.; Ample free parking for employees and clients.
