Three-Unit Office
For Sale
$949,900
1235 PENNSYLVANIA AVENUE SE, Washington, DC 20003
Three-unit office building with two upper floors available and a leased lower level.
Property Size2,200 SF
Price / SF$431.77
Days on Market174
Property Features for 1235 PENNSYLVANIA AVENUE SE
General Information
Standard status
Active
Size
2,200 SF
Property subtype
Office
Additional Details
Office Units
3
Building Details
Building Size
2,200 SF
Year Built
2025
Listing Agency:
EXP Realty, LLC
Listed By:
Michael A Hines · License #SP98365254
(202) 379-5868
Source:
Kerishull
Added: Mar 21
Changed: Aug 28
Last Checked: Sep 10 at 6:04AM
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 EXP Realty, LLC
Investment Insights
Based on property information with market context.
This charming three-unit office building offers a flexible split-configuration with two floors currently vacant and ready for occupancy, while the lower level is presently leased. The property is set up as small office spaces, making it a practical fit for tenants seeking dedicated, self-contained areas within a compact building.
Located at 1235 Pennsylvania Ave SE in Washington, DC, the building is offered for sale or lease. As presented, the current leasing arrangement provides an in-place lower-level tenant position, with additional office space available on the 1st and 2nd floors.
Located at 1235 Pennsylvania Ave SE in Washington, DC, the building is offered for sale or lease. As presented, the current leasing arrangement provides an in-place lower-level tenant position, with additional office space available on the 1st and 2nd floors.
Key Highlights
- Three‑unit office building with two floors available and the lower level currently leased
- Lower level leased for $3,100,000
- 1st and 2nd floors available for $6,100.00 NNN
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
$69,854
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
7.35%
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%
$1,397,080
$1.4M
Cap Rate 7%
$997,914
$997.9K
Cap Rate 9%
$776,156
$776.2K
Market Conditions
NOI Build-Up for 2,200 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
$110.9K $50.40/SF
− Vacancy
−$17.7K −$8.06/SF
EGI
$93.1K $42.34/SF
− OpEx
−$23.3K −$10.58/SF
NOI
$69.9K $31.75/SF
Area
Washington, DC
Vacancy
16.00%
Lease Rate
$50.40 /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%
$1,397,080
Cap Rate 7%
$997,914
Cap Rate 9%
$776,156
Alternative Uses
Best Use
Office B
$997.9K
$873.2K – $1.16M
NOI $69,854 @ 7.0% cap · market cap 7.35%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.13M
$990.2K – $1.32M
NOI $79,213 @ 7.0% cap · market cap 8.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
3
Office units
Location Intelligence
Trade Area within ½ mile
2,870
Businesses Nearby
Explore this area
Business Placement
Demographics for 20003, DC
36,501
Population
20,817
Households
1.8
Avg Household Size
35
Median Age
81%
College-Educated
97%
High-School Grad
2.3 sq mi
ZIP Area
15,870
Density / Sq Mi
$159,604
Median Household Income
$107,846
Median Earnings
$2,630
Median Rent
$954,200
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 Washington, DC
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Frequently Asked Questions
What type of property is this?
Office units - Three-unit office building with two upper floors available and a leased lower level.
Where is this office units located?
The property is located at 1235 PENNSYLVANIA AVENUE SE Washington, DC.
What is the asking price?
The asking price for this property is $949,900.
What are key features of this property?
This property features: Three‑unit office building with two floors available and the lower level currently leased; Lower level leased for $3,100,000; 1st and 2nd floors available for $6,100.00 NNN
