Two-Level Professional Office
For Sale
$680,000
101 CHESTNUT ST #2 2, Gaithersburg, MD 20877
Flexible office condominium with private rooms, reception space, dual kitchen areas, and surface parking for staff and visitors.
Property Size2,600 SF
Price / SF$261.54
Days on Market53
Property Features for 101 CHESTNUT ST #2 2
General Information
Standard status
Active
Size
2,600 SF
Additional Details
Opportunity Zone
Yes
Highway Access
Yes
Listing Agency:
Fairfax Realty Premier
(240) 478-8739
Listed By:
Charles Coello · License #681917
(240) 478-8739
Source:
Towncentermd
Added: Jul 10
Changed: Aug 30
Last Checked: Aug 30 at 5:39PM
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 Fairfax Realty Premier
Investment Insights
Based on property information with market context.
This two-story office condominium provides more than 2,600 square feet of professional workspace in a well-maintained commercial townhouse configuration. The interior includes nine enclosed rooms with windows, a classroom, a dedicated reception area, wood flooring, and two kitchen areas positioned on separate levels. Each floor also has a ceramic-tile bathroom. The property is currently occupied by an operating counseling and therapeutic practice, while the existing layout can support other professional-service configurations.
Located at 101 Chestnut St #2 in Gaithersburg, the unit is near the Montgomery County Fairgrounds, NIST, and Gaithersburg Towne Plaza. Access to Route 355 and I-270 is available from the property. Surface parking serves the building’s staff and visitors, and the site is within a federally designated Opportunity Zone.
Located at 101 Chestnut St #2 in Gaithersburg, the unit is near the Montgomery County Fairgrounds, NIST, and Gaithersburg Towne Plaza. Access to Route 355 and I-270 is available from the property. Surface parking serves the building’s staff and visitors, and the site is within a federally designated Opportunity Zone.
Key Highlights
- 2,600+ square feet of office space across two levels
- Nine enclosed windowed rooms, including one classroom
- Dedicated reception area with wood floors throughout
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
$40,890
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
6.01%
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%
$817,800
$817.8K
Cap Rate 7%
$584,143
$584.1K
Cap Rate 9%
$454,333
$454.3K
Market Conditions
NOI Build-Up for 2,600 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
$83.9K $32.28/SF
− Vacancy
−$15.8K −$6.07/SF
EGI
$68.1K $26.21/SF
− OpEx
−$27.3K −$10.48/SF
NOI
$40.9K $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%
$817,800
Cap Rate 7%
$584,143
Cap Rate 9%
$454,333
Alternative Uses
Best Use
Healthcare Medical
$584.1K
$511.1K – $681.5K
NOI $40,890 @ 7.0% cap · market cap 6.01%
Second Best
Office B
$453.9K
$397.2K – $529.6K
NOI $31,775 @ 7.0% cap · market cap 4.67%
Theoretical Best
Specialty Retail
$914.6K
$800.3K – $1.07M
NOI $64,023 @ 7.0% cap · market cap 9.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,226
Businesses Nearby
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?
Office units - Flexible office condominium with private rooms, reception space, dual kitchen areas, and surface parking for staff and visitors.
Where is this office units located?
The property is located at 101 CHESTNUT ST #2 2 Gaithersburg, MD.
What is the asking price?
The asking price for this property is $680,000.
What are key features of this property?
This property features: 2,600+ square feet of office space across two levels; Nine enclosed windowed rooms, including one classroom; Dedicated reception area with wood floors throughout
