Renovated Multi-Level Office
New
For Sale
$735,000
23 S COLONIAL DRIVE, Hagerstown, MD 21740
Renovated office property with private workrooms, support areas, a garage, and a leased lower level.
Property Size3,178 SF
Price / SF$231.28
Days on Market7
Property Features for 23 S COLONIAL DRIVE
General Information
Standard status
Active
Size
3,178 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Public Transit
No
Amenities
private offices
public bathroom
private bath
kitchen
utility room
foyer
garage
Building Details
Year Built
1973
Year Renovated
2014
Buildings
1
Listing Agency:
Berkshire Hathaway HomeServices Homesale Realty
(301) 991-6160
Listed By:
Tricia M Churchey · License #632390
(301) 991-6160
Source:
Cummingsrealtors
Added: Aug 18
Changed: Aug 24
Last Checked: Aug 23 at 8:27AM
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 Berkshire Hathaway HomeServices Homesale Realty
Investment Insights
Based on property information with market context.
This office building was constructed in 1973 and renovated in 2014. The first floor contains five private offices, a public bathroom, a private bathroom, kitchen, utility room, large foyer, and garage. The layout is suited to professional office operations, including law, accounting, and other service-based businesses.
The lower level provides additional space and is currently leased, creating a separate occupancy component within the property. The building is located at 23 S COLONIAL Dr in Hagerstown, Maryland, with access to Route 40 and I-70. Walk Score is 59, Bike Score is 70, and Transit Score is 19.
The lower level provides additional space and is currently leased, creating a separate occupancy component within the property. The building is located at 23 S COLONIAL Dr in Hagerstown, Maryland, with access to Route 40 and I-70. Walk Score is 59, Bike Score is 70, and Transit Score is 19.
Key Highlights
- Renovated in 2014
- Five private offices on the first floor
- First‑floor kitchen, utility room, foyer, and garage
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
$38,183
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
5.19%
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%
$763,660
$763.7K
Cap Rate 7%
$545,471
$545.5K
Cap Rate 9%
$424,256
$424.3K
Market Conditions
NOI Build-Up for 3,178 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
$62.5K $19.68/SF
− Vacancy
−$11.6K −$3.66/SF
EGI
$50.9K $16.02/SF
− OpEx
−$12.7K −$4.00/SF
NOI
$38.2K $12.01/SF
Area
Washington County, MD
Vacancy
18.60%
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%
$763,660
Cap Rate 7%
$545,471
Cap Rate 9%
$424,256
Alternative Uses
Best Use
Office B
$545.5K
$477.3K – $636.4K
NOI $38,183 @ 7.0% cap · market cap 5.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$704.9K
$616.8K – $822.4K
NOI $49,346 @ 7.0% cap · market cap 6.71%
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
843
Businesses Nearby
Explore this area
Business Placement
Demographics for 21740, MD
65,619
Population
27,002
Households
2.4
Avg Household Size
39
Median Age
20%
College-Educated
86%
High-School Grad
70.9 sq mi
ZIP Area
926
Density / Sq Mi
$59,410
Median Household Income
$42,159
Median Earnings
$1,031
Median Rent
$241,600
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 building - Renovated office property with private workrooms, support areas, a garage, and a leased lower level.
Where is this office building located?
The property is located at 23 S COLONIAL DRIVE Hagerstown, MD.
What is the asking price?
The asking price for this property is $735,000.
What are key features of this property?
This property features: Renovated in 2014; Five private offices on the first floor; First‑floor kitchen, utility room, foyer, and garage
