Fully Leased Office Building with Triple
For Sale
$3,300,000
6200 Coastal Hwy # 1, Ocean City, MD 21842
Fully leased office building with triple net leases on Coastal Highway at the Rt. 90 bridge intersection.
Property Size7,745 SF
Days on Market34
Property Features for 6200 Coastal Hwy # 1
General Information
Standard status
Active
Size
7,745 SF
Class
A
Property subtype
Office
Occupancy
100%
Additional Details
Road Access
Yes
Building Details
Building Size
7,745 SF
Year Built
2006
Listing Agency:
SVN/Miller Commercial Real Estate
(410) 251-6408
Listed By:
Wesley Cox, CCIM · License #574198
(410) 251-6408
Source:
Svn
Added: Jul 30
Changed: Aug 31
Last Checked: Aug 31 at 2:40PM
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 SVN/Miller Commercial Real Estate
Investment Insights
Based on property information with market context.
This office building is fully leased with triple net leases. Built in 2006 and totaling 7,404 SF, the property is positioned to serve established office users seeking an income-producing, professionally structured lease setup.
6200 Coastal Highway is located directly on Coastal Highway at the Rt. 90 bridge intersection, along the island’s primary commercial corridor. It sits at the entrance of one of the only access points to get on the island, supporting consistent year-round traffic counts and sustained exposure from Ocean City’s visitors.
With Ocean City’s barrier-island geography limiting meaningful commercial expansion, existing commercial assets along Coastal Highway are described as facing strong tenant demand and long-term value stability driven by limited supply and market growth.
6200 Coastal Highway is located directly on Coastal Highway at the Rt. 90 bridge intersection, along the island’s primary commercial corridor. It sits at the entrance of one of the only access points to get on the island, supporting consistent year-round traffic counts and sustained exposure from Ocean City’s visitors.
With Ocean City’s barrier-island geography limiting meaningful commercial expansion, existing commercial assets along Coastal Highway are described as facing strong tenant demand and long-term value stability driven by limited supply and market growth.
Key Highlights
- Fully leased office building with triple net leases
- Directly on Coastal Highway at the Rt. 90 bridge intersection
- Situated along the island’s primary commercial corridor
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
$108,322
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
3.28%
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%
$2,166,440
$2.2M
Cap Rate 7%
$1,547,457
$1.5M
Cap Rate 9%
$1,203,578
$1.2M
Market Conditions
NOI Build-Up for 7,745 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
$171.9K $22.20/SF
− Vacancy
−$27.5K −$3.55/SF
EGI
$144.4K $18.65/SF
− OpEx
−$36.1K −$4.66/SF
NOI
$108.3K $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%
$2,166,440
Cap Rate 7%
$1,547,457
Cap Rate 9%
$1,203,578
Alternative Uses
Best Use
Office B
$1.55M
$1.35M – $1.81M
NOI $108,322 @ 7.0% cap · market cap 3.28%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.86M
$1.63M – $2.17M
NOI $130,283 @ 7.0% cap · market cap 3.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
495
Businesses Nearby
Explore this area
Business Placement
Demographics for 21842, MD
11,104
Population
32,684
Households
0.3
Avg Household Size
53
Median Age
39%
College-Educated
95%
High-School Grad
9.2 sq mi
ZIP Area
1,207
Density / Sq Mi
$75,372
Median Household Income
$40,189
Median Earnings
$1,258
Median Rent
$415,900
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?
Office building - Fully leased office building with triple net leases on Coastal Highway at the Rt. 90 bridge intersection.
Where is this office building located?
The property is located at 6200 Coastal Hwy # 1 Ocean City, MD.
What is the asking price?
The asking price for this property is $3,300,000.
What are key features of this property?
This property features: Fully leased office building with triple net leases; Directly on Coastal Highway at the Rt. 90 bridge intersection; Situated along the island’s primary commercial corridor
