Office Condo in Office
For Sale
Contact for pricing
Pending
18504 Office Park Dr 2nd Floor Unit, Gaithersburg, MD 20886
Second-floor office condo suitable for medical or professional use.
Property Size1,225 SF
Days on Market364
Property Features for 18504 Office Park Dr 2nd Floor Unit
General Information
Standard status
Pending
Size
1,225 SF
Property subtype
Office
Investment Type
Owner/User
Building Details
Year Built
1988
Stories
2
Listing Agency:
CapStar Commercial Realty
(301) 738-7777
Listed By:
Benjamin Marks · License #MD 5002789
Source:
Crexi
Added: Aug 11, 2025
Changed: Aug 8
Last Checked: Aug 9 at 12:48PM
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 CapStar Commercial Realty
Investment Insights
Based on property information with market context.
Located at 18504 Office Park, this second-floor office condo presents an opportunity for medical or professional service users. The property is surrounded by established medical practitioners and service-based businesses, benefiting from co-tenancy and a growing commercial presence. The layout includes a reception area suitable for greeting clients and visitors, along with an open work area that can accommodate collaborative workstations or additional desks. There are four private offices, each featuring large windows to provide natural light and a working environment. The property has a size of 1225 square feet.
Key Highlights
- Ideal for medical or professional service users due to location in established office park.
- Benefits from strong co‑tenancy with established medical practitioners and service‑based businesses.
- Features four private offices, each with large windows and ample natural light.
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
$14,971
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
7.30%
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%
$299,420
$299.4K
Cap Rate 7%
$213,871
$213.9K
Cap Rate 9%
$166,344
$166.3K
Market Conditions
NOI Build-Up for 1,225 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
$24.1K $19.68/SF
− Vacancy
−$4.1K −$3.38/SF
EGI
$20.0K $16.30/SF
− OpEx
−$5.0K −$4.07/SF
NOI
$15.0K $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%
$299,420
Cap Rate 7%
$213,871
Cap Rate 9%
$166,344
Alternative Uses
Best Use
Healthcare Medical
$275.2K
$240.8K – $321.1K
NOI $19,265 @ 7.0% cap · market cap 9.40%
Second Best
Office B
$213.9K
$187.1K – $249.5K
NOI $14,971 @ 7.0% cap · market cap 7.30%
Theoretical Best
Specialty Retail
$430.9K
$377.1K – $502.8K
NOI $30,165 @ 7.0% cap · market cap 14.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
82
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 20886, MD
35,649
Population
13,024
Households
2.7
Avg Household Size
36
Median Age
43%
College-Educated
88%
High-School Grad
4.1 sq mi
ZIP Area
8,695
Density / Sq Mi
$98,767
Median Household Income
$48,530
Median Earnings
$1,863
Median Rent
$366,400
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 - Second-floor office condo suitable for medical or professional use.
Where is this medical office space located?
The property is located at 18504 Office Park Dr 2nd Floor Unit Gaithersburg, MD.
What is the asking price?
The asking price for this property is $205,000.
What are key features of this property?
This property features: Ideal for medical or professional service users due to location in established office park.; Benefits from strong co‑tenancy with established medical practitioners and service‑based businesses.; Features **four private offices, each with large windows and ample natural light.**
