Medical Office
For Sale
$250,000
22888 THREE NOTCH Road, Lexington Park, MD 20653
Commercial Sale, LEXINGTON PARK, MD
Property Size1,582 SF
Lot Size0.04 Acres
Price / SF$158.03
Days on Market95
Property Features for 22888 THREE NOTCH Road
General Information
Property type
Other
Property subtype
Office
Parking
5
Parking features
Parking Lot
Elementary school district
ST. MARY'S COUNTY PUBLIC SCHOOLS
Middle school district
ST. MARY'S COUNTY PUBLIC SCHOOLS
High school district
ST. MARY'S COUNTY PUBLIC SCHOOLS
Standard status
Active
Lot size
0.04 Acres
Taxes and HOA fees
Tax Annual Amount
3133
Utilities
Heating system
Heat Pump (Heating), Electric (Heating)
Cooling system
Heat Pump
Amenities
coffee service bar
abundant natural light
ADA-compliant restroom
elegant tiled lobby entrance
Building Details
Year built
2007
Number of units
1
Building materials
Brick, Stick Built
Listing Agency:
Hooper & Associates
(301) 870-5841
Listed By:
Anne M Hooper · License #628757
(301) 932-9410
Added: Jun 11
Changed: Sep 13
Last Checked: Sep 13 at 6:06PM
MLS# MDSM2031784
Copyright © 2026 Bright MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,582 SF +/- office condominium is located in a 2007 brick office building designed for medical and professional use. The suite offers an open floor plan, a coffee service bar, abundant natural light, and an ADA-compliant restroom. Building amenities include a tiled lobby, elevator access, and a parking lot for tenants and visitors. Heating is provided by electric heat and a heat pump, with heat pump cooling.
The property is positioned near Patuxent River Naval Air Station and provides access to Three Notch Road, also designated MD Route 235. The corridor records exposure to more than 65,000 vehicles per day, providing a prominent commercial setting in Lexington Park.
The property is positioned near Patuxent River Naval Air Station and provides access to Three Notch Road, also designated MD Route 235. The corridor records exposure to more than 65,000 vehicles per day, providing a prominent commercial setting in Lexington Park.
Key Highlights
- 1,582 SF +/- office condominium
- 2007 brick office building with tiled lobby and elevator
- Open floor plan with coffee service bar and abundant 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
$22,152
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
8.86%
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%
$443,040
$443.0K
Cap Rate 7%
$316,457
$316.5K
Cap Rate 9%
$246,133
$246.1K
Market Conditions
NOI Build-Up for 1,582 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
$41.8K $26.40/SF
− Vacancy
−$4.8K −$3.06/SF
EGI
$36.9K $23.34/SF
− OpEx
−$14.8K −$9.34/SF
NOI
$22.2K $14.00/SF
Area
St. Mary's County, MD
Vacancy
11.60%
Lease Rate
$26.40 /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%
$443,040
Cap Rate 7%
$316,457
Cap Rate 9%
$246,133
Alternative Uses
Best Use
Office B
$345.3K
$302.1K – $402.8K
NOI $24,168 @ 7.0% cap · market cap 9.67%
Second Best
Healthcare Medical
$316.5K
$276.9K – $369.2K
NOI $22,152 @ 7.0% cap · market cap 8.86%
Theoretical Best
Office A
$586.7K
$513.4K – $684.5K
NOI $41,068 @ 7.0% cap · market cap 16.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
65,000 VPD
Traffic count
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
470
Businesses Nearby
Explore this area
Business Placement
Demographics for 20653, MD
25,180
Population
11,696
Households
2.2
Avg Household Size
34
Median Age
34%
College-Educated
91%
High-School Grad
33.2 sq mi
ZIP Area
758
Density / Sq Mi
$97,923
Median Household Income
$55,396
Median Earnings
$1,579
Median Rent
$341,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
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 - Flexible office condominium with an open layout, natural light, elevator access, and on-site parking.
Where is this office units located?
The property is located at 22888 THREE NOTCH Road Lexington Park, MD.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 1,582 SF +/- office condominium; 2007 brick office building with tiled lobby and elevator; Open floor plan with coffee service bar and abundant natural light
