Freestanding Retail
For Sale
$2,200,000
116 Ritchie Rd, Capitol Heights, MD 20743
Freestanding retail with 6,316± SF on 0.34 acres, leased to a long-term credit tenant.
Property Size6,316 SF
Lot Size0.34 Acres
Price / SF$348.32
Days on Market48
Property Features for 116 Ritchie Rd
General Information
Standard status
Active
Size
6,316 SF
Lot size
0.34 Acres
Property subtype
Retail
Zoning
I-E
Additional Details
Traffic Count
22,265 vehicles/day
Building Details
Building Size
6,316 SF
Year Built
1963
Listing Agency:
NAI Michael
(301) 526-2584
Listed By:
Terry Rogers · License #IB98358936
(301) 526-2584
Source:
Naiglobal
Added: Jul 9
Changed: Aug 21
Last Checked: Aug 24 at 3:47AM
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 NAI Michael
Investment Insights
Based on property information with market context.
Freestanding retail building totaling 6,316± square feet, situated on 0.34 acres. The property is offered for sale with a long-term credit tenant in place, supported by a 25-year term.
The site is described as having great visibility with total traffic counts of 22,265 vpd. It is zoned I-E (Industrial Employment) and includes a parking ratio of 1.58 per 1,000 SF. The property is located within a Prince George’s County designated Redevelopment Zone and a Regional Transit District area related to the Plan 2035 Blue/Silver Line corridor, with three Metro stations noted as nearby and an active Central Avenue–Blue/Silver Line Sector Plan authorized in 2023.
The site is described as having great visibility with total traffic counts of 22,265 vpd. It is zoned I-E (Industrial Employment) and includes a parking ratio of 1.58 per 1,000 SF. The property is located within a Prince George’s County designated Redevelopment Zone and a Regional Transit District area related to the Plan 2035 Blue/Silver Line corridor, with three Metro stations noted as nearby and an active Central Avenue–Blue/Silver Line Sector Plan authorized in 2023.
Key Highlights
- 6,316± SF freestanding retail building on 0.34 acres
- Long‑term credit tenant in place with a 25‑year lease
- Traffic counts of 22,265 vpd and strong visibility
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
$141,886
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
6.45%
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%
$2,837,720
$2.8M
Cap Rate 7%
$2,026,943
$2.0M
Cap Rate 9%
$1,576,511
$1.6M
Market Conditions
NOI Build-Up for 6,316 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
$214.5K $33.96/SF
− Vacancy
−$11.8K −$1.87/SF
EGI
$202.7K $32.09/SF
− OpEx
−$60.8K −$9.63/SF
NOI
$141.9K $22.46/SF
Area
Prince George's County, MD
Vacancy
5.50%
Lease Rate
$33.96 /SF/Yr
Expense Ratio
30.00%
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%
$2,837,720
Cap Rate 7%
$2,026,943
Cap Rate 9%
$1,576,511
Alternative Uses
Best Use
Retail
$2.03M
$1.77M – $2.36M
NOI $141,886 @ 7.0% cap · market cap 6.45%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.04M
$1.78M – $2.38M
NOI $142,626 @ 7.0% cap · market cap 6.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
22,265 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
880
Businesses Nearby
228k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 48%
Shops & Services 31%
Home Improvements & Furnishings 19%
Hotels & Casinos 2%
The Home Depot
Home Improvements & Furnishings
43,086 visits/mo
0.4 miles
McDonald's
Dining
36,524 visits/mo
0.3 miles
McDonald's
Dining
30,842 visits/mo
0.2 miles
Wendy's
Dining
19,284 visits/mo
0.3 miles
Shell
Shops & Services
16,215 visits/mo
0.2 miles
Demographics for 20743, MD
40,709
Population
16,521
Households
2.5
Avg Household Size
38
Median Age
23%
College-Educated
86%
High-School Grad
9.6 sq mi
ZIP Area
4,241
Density / Sq Mi
$76,332
Median Household Income
$47,762
Median Earnings
$1,614
Median Rent
$317,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Freestanding retail with 6,316± SF on 0.34 acres, leased to a long-term credit tenant.
Where is this retail space located?
The property is located at 116 Ritchie Rd Capitol Heights, MD.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: 6,316± SF freestanding retail building on 0.34 acres; Long‑term credit tenant in place with a 25‑year lease; Traffic counts of 22,265 vpd and strong visibility
