Updated Medical Office
For Sale
$210,000
1601 Milltown Road Unit 4, Wilmington, DE 19808
Configured as a med spa with a layout suitable for professional or medical office use.
Property Size1,065 SF
Days on Market195
Property Features for 1601 Milltown Road Unit 4
General Information
Standard status
Active
Size
1,065 SF
Class
B
Property subtype
Multi Tenant Office
Additional Details
HOA Fee
$220
Highway Access
Yes
Building Details
Building Size
1,065 SF
Year Built
1981
Year Renovated
2023
Listing Agency:
NAI Emory Hill
(302) 322-9500
Listed By:
Jennifer Lyall
(302) 322-9500
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 29
Last Checked: Aug 29 at 6:59PM
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 Emory Hill
Investment Insights
Based on property information with market context.
This medical office suite is located within an office park and is currently arranged for med spa operations. The space can be adapted for general office or medical office use, supporting a range of professional configurations. Updates completed in 2023 include LED lighting, modern flooring, and refreshed color schemes.
The property offers on-site parking and convenient access to the Pike Creek area. It is less than 1 mile from Kirkwood Highway (Route 2) and approximately 1/8 mile from Limestone Road (Route 7). Built in 1981, the suite combines an established office setting with recent interior improvements.
The property offers on-site parking and convenient access to the Pike Creek area. It is less than 1 mile from Kirkwood Highway (Route 2) and approximately 1/8 mile from Limestone Road (Route 7). Built in 1981, the suite combines an established office setting with recent interior improvements.
Key Highlights
- Medical office suite in a professional office park setting
- Currently configured as a med spa
- Adaptable for general or medical office use
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
$15,365
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
7.32%
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%
$307,300
$307.3K
Cap Rate 7%
$219,500
$219.5K
Cap Rate 9%
$170,722
$170.7K
Market Conditions
NOI Build-Up for 1,065 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
$29.3K $27.48/SF
− Vacancy
−$3.7K −$3.44/SF
EGI
$25.6K $24.05/SF
− OpEx
−$10.2K −$9.62/SF
NOI
$15.4K $14.43/SF
Area
New Castle County, DE
Vacancy
12.50%
Lease Rate
$27.48 /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%
$307,300
Cap Rate 7%
$219,500
Cap Rate 9%
$170,722
Alternative Uses
Best Use
Healthcare Medical
$219.5K
$192.1K – $256.1K
NOI $15,365 @ 7.0% cap · market cap 7.32%
Second Best
Office B
$207.2K
$181.3K – $241.8K
NOI $14,506 @ 7.0% cap · market cap 6.91%
Theoretical Best
Office A
$254.7K
$222.9K – $297.2K
NOI $17,832 @ 7.0% cap · market cap 8.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
555
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19808, DE
39,285
Population
16,037
Households
2.4
Avg Household Size
44
Median Age
41%
College-Educated
93%
High-School Grad
13.8 sq mi
ZIP Area
2,847
Density / Sq Mi
$92,883
Median Household Income
$53,084
Median Earnings
$1,357
Median Rent
$309,700
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?
Medical Office Space - Configured as a med spa with a layout suitable for professional or medical office use.
Where is this medical office space located?
The property is located at 1601 Milltown Road Unit 4 Wilmington, DE.
What is the asking price?
The asking price for this property is $210,000.
What are key features of this property?
This property features: Medical office suite in a professional office park setting; Currently configured as a med spa; Adaptable for general or medical office use
