Listing Agency: Friend Commercial Real Estate

Listed By: Yasmin Bannan · License #5009815

Source: Crexi

Added: Apr 30 Changed: Aug 24 Last Checked: Sep 2 at 11:48AM

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Investment Insights

Based on property information with market context.

This high-visibility industrial warehouse is offered for sale within Severn Commerce Center. The property provides approximately 2,089 sq. ft. and is positioned for strong street-facing presence based on the stated high-visibility characteristic.

Located at 1244 Ritchie Hwy in Arnold, Maryland, the site is part of the Severn Commerce Center business setting, which can support a range of light industrial and warehousing requirements depending on tenant fit and approval.

Additional details such as office buildout, loading configuration, and current condition are not provided in the available information.

Key Highlights

• Industrial warehouse for sale within Severn Commerce Center
• Approximately 2,089 sq. ft. of space
• High‑visibility location within the commerce center

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

$13,758

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

3.06%

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%

$275,160 $275.2K

Cap Rate 7%

$196,543 $196.5K

Cap Rate 9%

$152,867 $152.9K

Market Conditions

NOI Build-Up for 2,089 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

$17.5K $8.40/SF

− Vacancy

−$1.4K −$0.65/SF

EGI

$16.2K $7.75/SF

− OpEx

−$2.4K −$1.16/SF

NOI

$13.8K $6.59/SF

Area

Anne Arundel County, MD

Vacancy

7.76%

Lease Rate

$8.40 /SF/Yr

Expense Ratio

15.00%

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%

$275,160

Cap Rate 7%

$196,543

Cap Rate 9%

$152,867

Alternative Uses

Best Use

Warehouse

$196.5K

$172.0K – $229.3K (±1% cap)

NOI $13,758 @ 7.0% cap · market cap 3.06%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$611.1K

$534.7K – $712.9K (±1% cap)

NOI $42,776 @ 7.0% cap · market cap 9.51%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

R C Colerick ... Industrial Manufacturer Amtek Company Training Center Mission Martial Arts Training Center Thrive Gym - Arnold Training Center Yoga TSW Gym & Fitness Center

Suggested Use

Top Pick Real Estate Agency Restaurant Law Firm Dental Office Building Supply Big Box & Wholesale Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

220

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 21012, MD

22,377

Population

8,509

Households

2.6

Avg Household Size

41

Median Age

60%

College-Educated

98%

High-School Grad

9.8 sq mi

ZIP Area

2,283

Density / Sq Mi

$137,544

Median Household Income

$72,146

Median Earnings

$2,171

Median Rent

$552,000

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this warehouses located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Warehouse - For sale industrial warehouse within Severn Commerce Center, offering high visibility and approximately 2,089 sq. ft. of space.

Where is this warehouse located?

The property is located at 1244 Ritchie Hwy Arnold, MD.

What is the asking price?

The asking price for this property is $450,000.

What are key features of this property?

This property features: Industrial warehouse for sale within Severn Commerce Center; Approximately 2,089 sq. ft. of space; High‑visibility location within the commerce center