Medical Office
For Sale
$900,000
6550 MERCANTILE DRIVE E 201, Frederick, MD 21703
Furnished medical office condominium within a GC-zoned commercial property.
Property Size3,087 SF
Price / SF$291.55
Days on Market31
Property Features for 6550 MERCANTILE DRIVE E 201
General Information
Standard status
Active
Size
3,087 SF
Property subtype
Office
Zoning
GC
Additional Details
Furnished
Yes
Taxes and HOA fees
Annual Taxes
$8,168
Building Details
Building Size
3,087 SF
Year Built
2007
Listing Agency:
VCRE.CO
(240) 367-9600
Listed By:
Tony "C" Checchia · License #307505
(240) 367-9600
Source:
Barnesrealestatecompany
Added: Aug 1
Changed: Aug 22
Last Checked: Aug 30 at 10:40PM
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 VCRE.CO
Investment Insights
Based on property information with market context.
This medical office condominium provides 3,087 square feet of commercial space in a condominium setting. Furniture and fixtures are included, supporting an existing professional office configuration without relying on additional property-specific improvements not identified here.
Constructed in 2007, the property is located on Mercantile Drive in Frederick, Maryland. The site carries GC zoning, providing the stated land-use designation for this medical office asset.
Constructed in 2007, the property is located on Mercantile Drive in Frederick, Maryland. The site carries GC zoning, providing the stated land-use designation for this medical office asset.
Key Highlights
- 3,087 SF medical office condominium
- Furniture and fixtures included
- GC zoning
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
$58,281
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
6.48%
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%
$1,165,620
$1.2M
Cap Rate 7%
$832,586
$832.6K
Cap Rate 9%
$647,567
$647.6K
Market Conditions
NOI Build-Up for 3,087 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
$108.2K $35.04/SF
− Vacancy
−$11.0K −$3.57/SF
EGI
$97.1K $31.47/SF
− OpEx
−$38.9K −$12.59/SF
NOI
$58.3K $18.88/SF
Area
Frederick County, MD
Vacancy
10.20%
Lease Rate
$35.04 /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%
$1,165,620
Cap Rate 7%
$832,586
Cap Rate 9%
$647,567
Alternative Uses
Best Use
Healthcare Medical
$832.6K
$728.5K – $971.4K
NOI $58,281 @ 7.0% cap · market cap 6.48%
Second Best
Office B
$807.9K
$707.0K – $942.6K
NOI $56,556 @ 7.0% cap · market cap 6.28%
Theoretical Best
Specialty Retail
$1.14M
$1.00M – $1.33M
NOI $80,072 @ 7.0% cap · market cap 8.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
514
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 21703, MD
41,138
Population
15,773
Households
2.6
Avg Household Size
35
Median Age
43%
College-Educated
92%
High-School Grad
32.0 sq mi
ZIP Area
1,286
Density / Sq Mi
$105,293
Median Household Income
$56,791
Median Earnings
$1,887
Median Rent
$364,300
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.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Furnished medical office condominium within a GC-zoned commercial property.
Where is this medical office space located?
The property is located at 6550 MERCANTILE DRIVE E 201 Frederick, MD.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 3,087 SF medical office condominium; Furniture and fixtures included; GC zoning
