Rockville Office and Medical
For Sale
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14801 Physicians Ln, Rockville, MD 20850
Two first-floor office units suitable for office and medical uses.
Property Size12,284 SF
Price / SF$146.53
Days on Market225
Property Features for 14801 Physicians Ln
General Information
Standard status
Active
Size
12,284 SF
Class
C
Property subtype
Office
Zoning
Commercial/Residential (CR)
Building Details
Year Built
2014
Units
2
Listing Agency:
Divaris Real Estate Inc DC Regional Office
Listed By:
Joey Lee · License #5020086
Source:
Crexi
Added: Jan 8
Changed: Aug 21
Last Checked: Aug 20 at 10:17PM
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 Divaris Real Estate Inc DC Regional Office
Investment Insights
Based on property information with market context.
The property features two first-floor units totaling 6,142 square feet. Constructed in 1984, the units include a reception area, multiple private offices, and bathrooms. The property offers abundant free surface parking. Zoned Commercial/Residential (CR) in Montgomery County, the property supports a mix of office and medical uses. The location provides a walkable, mixed-use environment surrounded by established professional, medical, and retail amenities. An optional owner leaseback of one unit at closing is available.
Key Highlights
- Two first‑floor units totaling 6,142 SF.
- Zoned Commercial/Residential (CR) in Montgomery County, supporting office and medical uses.
- Abundant free surface parking.
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
$150,126
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
8.34%
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%
$3,002,520
$3.0M
Cap Rate 7%
$2,144,657
$2.1M
Cap Rate 9%
$1,668,067
$1.7M
Market Conditions
NOI Build-Up for 12,284 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
$241.7K $19.68/SF
− Vacancy
−$41.6K −$3.38/SF
EGI
$200.2K $16.30/SF
− OpEx
−$50.0K −$4.07/SF
NOI
$150.1K $12.22/SF
Area
Montgomery County, MD
Vacancy
17.20%
Lease Rate
$19.68 /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%
$3,002,520
Cap Rate 7%
$2,144,657
Cap Rate 9%
$1,668,067
Alternative Uses
Best Use
Office B
$2.14M
$1.88M – $2.50M
NOI $150,126 @ 7.0% cap · market cap 8.34%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.32M
$3.78M – $5.04M
NOI $302,486 @ 7.0% cap · market cap 16.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
866
Businesses Nearby
Explore this area
Business Placement
Demographics for 20850, MD
51,045
Population
22,468
Households
2.3
Avg Household Size
41
Median Age
67%
College-Educated
94%
High-School Grad
14.1 sq mi
ZIP Area
3,620
Density / Sq Mi
$122,691
Median Household Income
$77,679
Median Earnings
$2,277
Median Rent
$687,200
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.
Frequently Asked Questions
What type of property is this?
Office units - Two first-floor office units suitable for office and medical uses.
Where is this office units located?
The property is located at 14801 Physicians Ln Rockville, MD.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Two first‑floor units totaling 6,142 SF.; Zoned Commercial/Residential (CR) in Montgomery County, supporting office and medical uses.; Abundant free surface parking.
