Medical Office Condo
For Sale
$420,000
8909 8909-8911 Shady Grove Court 1a, Gaithersburg, MD 20877
Two connected commercial units provide a medical-office layout with separate entry options and adaptable interior areas.
Property Size1,348 SF
Price / SF$311.57
Days on Market48
Property Features for 8909 8909-8911 Shady Grove Court 1a
General Information
Standard status
Active
Size
1,348 SF
Additional Details
Highway Access
Yes
Office Units
2
Building Details
Year Built
2004
Listing Agency:
Real Broker, LLC - Annapolis
(314) 803-2406
Listed By:
Sven M Skarie · License #644275
Source:
Premierehomegroup
Added: Jul 14
Changed: Aug 28
Last Checked: Aug 29 at 12:06PM
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 Real Broker, LLC - Annapolis
Investment Insights
Based on property information with market context.
This sale combines two adjacent condominium units configured for medical-office use. The interior includes a substantial reception and waiting area, billing and records space, a kitchenette, and four exam rooms with running water. A central counter area supports additional workspace between the exam rooms. The second unit has its own entrance, a dedicated office area, and a records room accessed through the first unit.
The property is located in Shady Grove Professional Park at 8909–8911 Shady Grove Court in Gaithersburg, Maryland. Access to I-495, I-270, and Rockville Pike (355) places the office near established business corridors. The building was constructed in 2004, and the interior can be modified to support a different floor plan.
The property is located in Shady Grove Professional Park at 8909–8911 Shady Grove Court in Gaithersburg, Maryland. Access to I-495, I-270, and Rockville Pike (355) places the office near established business corridors. The building was constructed in 2004, and the interior can be modified to support a different floor plan.
Key Highlights
- Two adjacent condo units at 8909–8911 Shady Grove Court
- Four exam rooms, each equipped with running water
- Open waiting area plus billing and records space
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
$21,200
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
5.05%
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%
$424,000
$424.0K
Cap Rate 7%
$302,857
$302.9K
Cap Rate 9%
$235,556
$235.6K
Market Conditions
NOI Build-Up for 1,348 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
$43.5K $32.28/SF
− Vacancy
−$8.2K −$6.07/SF
EGI
$35.3K $26.21/SF
− OpEx
−$14.1K −$10.48/SF
NOI
$21.2K $15.73/SF
Area
Montgomery County, MD
Vacancy
18.80%
Lease Rate
$32.28 /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%
$424,000
Cap Rate 7%
$302,857
Cap Rate 9%
$235,556
Alternative Uses
Best Use
Healthcare Medical
$302.9K
$265.0K – $353.3K
NOI $21,200 @ 7.0% cap · market cap 5.05%
Second Best
Office B
$235.3K
$205.9K – $274.6K
NOI $16,474 @ 7.0% cap · market cap 3.92%
Theoretical Best
Specialty Retail
$474.2K
$414.9K – $553.2K
NOI $33,194 @ 7.0% cap · market cap 7.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,714
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 20877, MD
37,577
Population
13,599
Households
2.8
Avg Household Size
36
Median Age
35%
College-Educated
76%
High-School Grad
5.6 sq mi
ZIP Area
6,710
Density / Sq Mi
$86,103
Median Household Income
$39,341
Median Earnings
$1,862
Median Rent
$462,500
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 - Two connected commercial units provide a medical-office layout with separate entry options and adaptable interior areas.
Where is this medical office space located?
The property is located at 8909 8909-8911 Shady Grove Court 1a Gaithersburg, MD.
What is the asking price?
The asking price for this property is $420,000.
What are key features of this property?
This property features: Two adjacent condo units at 8909–8911 Shady Grove Court; Four exam rooms, each equipped with running water; Open waiting area plus billing and records space
