Building Details

Year Renovated 2022

Listing Agency: SVN | Miller Commercial Real Estate Salisbury

Listed By: Andrew Ball · License #MD 36569 Show Phone

Source: Crexi

Added: Dec 13, 2023 Changed: Sep 1 Last Checked: Sep 3 at 12:20AM

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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 SVN | Miller Commercial Real Estate Salisbury

Investment Insights

Based on property information with market context.

This commercial condominium, originally the home of Tidewater Physical Therapy and currently Swim Fit Wellness, is available for sale. The property has a size of 3528 square feet. The condominium is located in Ocean Pines, Maryland. The business and commercial condominium can be purchased separately or together. It is suitable for medical office space, general office use, fitness centers, gyms, sports and entertainment purposes, and other commercial real estate ventures.

Key Highlights

• Commercial condominium for sale.
• Business for sale, currently Swim Fit Wellness.
• Originally the home of Tidewater Physical Therapy.

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

$49,343

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

6.71%

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%

$986,860 $986.9K

Cap Rate 7%

$704,900 $704.9K

Cap Rate 9%

$548,256 $548.3K

Market Conditions

NOI Build-Up for 3,528 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

$78.3K $22.20/SF

− Vacancy

−$12.5K −$3.55/SF

EGI

$65.8K $18.65/SF

− OpEx

−$16.4K −$4.66/SF

NOI

$49.3K $13.99/SF

Area

Worcester County, MD

Vacancy

16.00%

Lease Rate

$22.20 /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%

$986,860

Cap Rate 7%

$704,900

Cap Rate 9%

$548,256

Alternative Uses

Best Use

Office B

$704.9K

$616.8K – $822.4K (±1% cap)

NOI $49,343 @ 7.0% cap · market cap 6.71%

Second Best

Healthcare Medical

$587.7K

$514.2K – $685.7K (±1% cap)

NOI $41,139 @ 7.0% cap · market cap 5.60%

Theoretical Best

Office A

$847.8K

$741.8K – $989.1K (±1% cap)

NOI $59,347 @ 7.0% cap · market cap 8.07%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Medical Office Space

Suggested Use

Top Pick Hair Salon Nail Salon Auto Repair Shop Dental Office Auto Parts Store Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

405

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 21811, MD

23,907

Population

15,439

Households

1.5

Avg Household Size

52

Median Age

36%

College-Educated

94%

High-School Grad

101.5 sq mi

ZIP Area

236

Density / Sq Mi

$91,293

Median Household Income

$49,929

Median Earnings

$1,398

Median Rent

$362,500

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this medical office space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Medical Office Space - Commercial condominium for sale, suitable for various business uses.

Where is this medical office space located?

The property is located at 11022 Nicholas Ln Ocean Pines, 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: Commercial condominium for sale.; Business for sale, currently Swim Fit Wellness.; Originally the home of Tidewater Physical Therapy.