Versatile Commercial Units For
For Sale
$1,900,000
14801 Physicians Ln #171-b&c, Rockville, MD 20850
First-floor commercial units suitable for office, medical, retail uses.
Property Size6,142 SF
Price / SF$309.35
Days on Market217
Property Features for 14801 Physicians Ln #171-b&c
General Information
Standard status
Active
Size
6,142 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$21,925
Building Details
Year Built
2014
Listing Agency:
DIVARIS REAL ESTATE, INC
(571) 620-5142
Listed By:
ORESTE JOSEPH FARINA II
Source:
Corcoran
Added: Jan 4
Changed: Aug 8
Last Checked: Aug 8 at 1:56PM
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
Investment Insights
Based on property information with market context.
The property features first-floor units totaling 6,142 square feet. The layout includes a reception area, multiple private offices, and bathrooms. Abundant free surface parking is available. Constructed in 1984, the property is zoned Commercial/Residential (CR) in Montgomery County, accommodating a flexible mix of office, medical, retail, and service uses. The location offers 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
- Flexible commercial/residential (CR) zoning in Montgomery County allows for diverse business uses (office, medical, retail, service).
- First‑floor unit featuring 6,142 SF with a reception area, multiple private offices, and bathrooms.
- 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
$141,160
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
7.43%
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%
$2,823,200
$2.8M
Cap Rate 7%
$2,016,571
$2.0M
Cap Rate 9%
$1,568,444
$1.6M
Market Conditions
NOI Build-Up for 6,142 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
$215.2K $35.04/SF
− Vacancy
−$13.6K −$2.21/SF
EGI
$201.7K $32.83/SF
− OpEx
−$60.5K −$9.85/SF
NOI
$141.2K $22.98/SF
Area
Montgomery County, MD
Vacancy
6.30%
Lease Rate
$35.04 /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%
$2,823,200
Cap Rate 7%
$2,016,571
Cap Rate 9%
$1,568,444
Alternative Uses
Best Use
Retail
$2.02M
$1.76M – $2.35M
NOI $141,160 @ 7.0% cap · market cap 7.43%
Second Best
Healthcare Medical
$1.38M
$1.21M – $1.61M
NOI $96,594 @ 7.0% cap · market cap 5.08%
Theoretical Best
Specialty Retail
$2.16M
$1.89M – $2.52M
NOI $151,243 @ 7.0% cap · market cap 7.96%
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
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Frequently Asked Questions
What type of property is this?
Office units - First-floor commercial units suitable for office, medical, retail uses.
Where is this office units located?
The property is located at 14801 Physicians Ln #171-b&c Rockville, MD.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Flexible commercial/residential (CR) zoning in Montgomery County allows for diverse business uses (office, medical, retail, service).; First‑floor unit featuring 6,142 SF with a reception area, multiple private offices, and bathrooms.; Abundant free surface parking.
