Renovated Medical Office
New
For Sale
$499,000
235 Mill St Suite 3, Hagerstown, MD 21740
Configured with exam rooms, dedicated bathrooms, and private office space for clinical operations.
Property Size2,000 SF
Price / SF$249.50
Days on Market4
Property Features for 235 Mill St Suite 3
General Information
Standard status
Active
Size
2,000 SF
Class
B
Property subtype
Office - Medical Office
Zoning
POM
Building Details
Building Size
2,000 SF
Year Built
1986
Units
5
Listing Agency:
Hyatt Commercial
(410) 266-8800
Listed By:
Treva Ghattas · License #MD5006361
Source:
Commercialcafe
Added: Aug 28
Changed: Aug 29
Last Checked: Aug 30 at 1:10PM
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 Hyatt Commercial
Investment Insights
Based on property information with market context.
This 2,000-square-foot medical office suite combines three exam rooms with individual bathrooms and two additional offices. The space was built in 1986, has been newly renovated, and is described as move-in ready. POM zoning supports its medical-office positioning.
Located in downtown Hagerstown at 235 Mill St, Suite 3, the property is surrounded by other medical practices and sits near restaurants, banks, and additional services. Nearby points of interest include the baseball stadium that hosts The Flying Boxcars and Meritus Medical Center. The configuration provides a defined clinical layout with separate office areas within an established medical setting.
Located in downtown Hagerstown at 235 Mill St, Suite 3, the property is surrounded by other medical practices and sits near restaurants, banks, and additional services. Nearby points of interest include the baseball stadium that hosts The Flying Boxcars and Meritus Medical Center. The configuration provides a defined clinical layout with separate office areas within an established medical setting.
Key Highlights
- 2,000 SF medical office suite in downtown Hagerstown
- Three exam rooms, each with its own bathroom
- Two offices included in the suite layout
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
$24,029
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
4.82%
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%
$480,580
$480.6K
Cap Rate 7%
$343,271
$343.3K
Cap Rate 9%
$266,989
$267.0K
Market Conditions
NOI Build-Up for 2,000 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
$39.4K $19.68/SF
− Vacancy
−$7.3K −$3.66/SF
EGI
$32.0K $16.02/SF
− OpEx
−$8.0K −$4.00/SF
NOI
$24.0K $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%
$480,580
Cap Rate 7%
$343,271
Cap Rate 9%
$266,989
Alternative Uses
Best Use
Office B
$343.3K
$300.4K – $400.5K
NOI $24,029 @ 7.0% cap · market cap 4.82%
Second Best
Healthcare Medical
$341.6K
$298.9K – $398.5K
NOI $23,911 @ 7.0% cap · market cap 4.79%
Theoretical Best
Office A
$443.6K
$388.2K – $517.6K
NOI $31,055 @ 7.0% cap · market cap 6.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,649
Businesses Nearby
Balanced
Demand for This Use
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?
Medical Office Space - Configured with exam rooms, dedicated bathrooms, and private office space for clinical operations.
Where is this medical office space located?
The property is located at 235 Mill St Suite 3 Hagerstown, MD.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: 2,000 SF medical office suite in downtown Hagerstown; Three exam rooms, each with its own bathroom; Two offices included in the suite layout
