Two-Level Office
For Sale
$680,000
101 CHESTNUT STREET Unit 2, Gaithersburg, MD 20877
Professional layout includes enclosed rooms, a classroom, reception area, kitchens, and bathrooms across both floors.
Property Size2,678 SF
Days on Market193
Property Features for 101 CHESTNUT STREET Unit 2
General Information
Standard status
Active
Size
2,678 SF
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$7,399
Building Details
Building Size
2,678 SF
Year Built
1980
Listing Agency:
Fairfax Realty Premier
Listed By:
Charles Coello · License #681917
(240) 478-8739
Source:
Thehulsmangroup
Added: Mar 15
Changed: Sep 21
Last Checked: Sep 22 at 10:31PM
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 2,600+ square feet of professional space in a building constructed in 1980. The interior includes nine enclosed rooms with windows, a classroom, a reception area, wood flooring, and two kitchen areas, with one positioned on each floor. Ceramic-tiled bathrooms are also located on both levels. The space is currently occupied by a counseling and therapeutic practice and can support continued professional office use.
Surface parking accommodates staff and visitors. The property is near the Montgomery County Fairgrounds, NIST, and Gaithersburg Towne Plaza, with access to Route 355 and I-270. It is located within a federally designated Opportunity Zone.
Surface parking accommodates staff and visitors. The property is near the Montgomery County Fairgrounds, NIST, and Gaithersburg Towne Plaza, with access to Route 355 and I-270. It is located within a federally designated Opportunity Zone.
Key Highlights
- 2,600+ square feet of professional office space
- Two‑level layout with nine enclosed windowed rooms
- Includes a classroom and dedicated reception area
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
$42,116
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
6.19%
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%
$842,320
$842.3K
Cap Rate 7%
$601,657
$601.7K
Cap Rate 9%
$467,956
$468.0K
Market Conditions
NOI Build-Up for 2,678 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
$86.4K $32.28/SF
− Vacancy
−$16.3K −$6.07/SF
EGI
$70.2K $26.21/SF
− OpEx
−$28.1K −$10.48/SF
NOI
$42.1K $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%
$842,320
Cap Rate 7%
$601,657
Cap Rate 9%
$467,956
Alternative Uses
Best Use
Healthcare Medical
$601.7K
$526.5K – $701.9K
NOI $42,116 @ 7.0% cap · market cap 6.19%
Second Best
Office B
$467.6K
$409.1K – $545.5K
NOI $32,729 @ 7.0% cap · market cap 4.81%
Theoretical Best
Specialty Retail
$942.1K
$824.3K – $1.10M
NOI $65,944 @ 7.0% cap · market cap 9.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,689
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office units - Professional layout includes enclosed rooms, a classroom, reception area, kitchens, and bathrooms across both floors.
Where is this office units located?
The property is located at 101 CHESTNUT STREET Unit 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 professional office space; Two‑level layout with nine enclosed windowed rooms; Includes a classroom and dedicated reception area
