Premium Office Condo in
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105 Montgomery Avenue, Lansdale, PA 19446
Excellent condition office condo with income and owner-user potential.
Property Size6,316 SF
Price / SF$182.08
Days on Market110
Property Features for 105 Montgomery Avenue
General Information
Standard status
Active
Size
6,316 SF
Property subtype
Office
Building Details
Stories
3
Units
4
Tenancy
Multi
Listing Agency:
KW Commercial
(215) 664-1091
Listed By:
Craig Fernsler, CCIM · License #PA RS188696L
Source:
Crexi
Added: May 13
Changed: Aug 8
Last Checked: Aug 28 at 8:20PM
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 KW Commercial
Investment Insights
Based on property information with market context.
Located in the heart of Montgomeryville, this premium office condominium is in excellent condition and situated in a desirable area. The property features approximately 6,316 square feet of rentable office space. It generates an annual income of $96,112 from the partially tenant-occupied space. The building includes 2,428 square feet of currently available owner-user/investor space, 1,339 square feet of unused 3rd-floor space, and 2,678 square feet of basement storage. Flexible office layouts accommodate various professional needs. Elevator access and ADA compliance ensure accessibility. The business complex comprises two buildings, creating an optimal setup for professional office users. Zoned under the Office/Business Park District, the property allows for a multitude of permitted uses. It is located less than a mile from Route 309 on business Route 202, providing easy access to major highways and excellent regional connectivity. The location benefits from an excellent mix of nearby retail and dining options and proximity to multiple hotels, including Courtyard by Marriott, Hampton Inn & Suites, and Staybridge Suites.
Key Highlights
- High annual income of $96,112 from tenant‑occupied space.
- Significant owner‑user/investor space available (2,428 SF).
- Prime location near Route 309 and Business Route 202, with easy access to major highways.
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
$99,298
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
8.63%
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%
$1,985,960
$2.0M
Cap Rate 7%
$1,418,543
$1.4M
Cap Rate 9%
$1,103,311
$1.1M
Market Conditions
NOI Build-Up for 6,316 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
$164.5K $26.04/SF
− Vacancy
−$32.1K −$5.08/SF
EGI
$132.4K $20.96/SF
− OpEx
−$33.1K −$5.24/SF
NOI
$99.3K $15.72/SF
Area
Montgomery County, PA
Vacancy
19.50%
Lease Rate
$26.04 /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%
$1,985,960
Cap Rate 7%
$1,418,543
Cap Rate 9%
$1,103,311
Alternative Uses
Best Use
Office B
$1.42M
$1.24M – $1.65M
NOI $99,298 @ 7.0% cap · market cap 8.63%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.63M
$3.18M – $4.24M
NOI $254,312 @ 7.0% cap · market cap 22.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
434
Businesses Nearby
Explore this area
Business Placement
Demographics for 19446, PA
58,930
Population
24,983
Households
2.4
Avg Household Size
44
Median Age
51%
College-Educated
93%
High-School Grad
22.6 sq mi
ZIP Area
2,608
Density / Sq Mi
$103,875
Median Household Income
$60,396
Median Earnings
$1,738
Median Rent
$415,400
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Excellent condition office condo with income and owner-user potential.
Where is this office building located?
The property is located at 105 Montgomery Avenue Lansdale, PA.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: High annual income of $96,112 from tenant‑occupied space.; Significant owner‑user/investor space available (2,428 SF).; Prime location near Route 309 and Business Route 202, with easy access to major highways.
