Renovated Flex Space For
For Sale
$2,900,000
651 N PROSPECT St, Hagerstown, MD 21740
44,000 sq ft renovated flex space with owner financing.
Property Size44,000 SF
Price / SF$65.91
Days on Market119
Property Features for 651 N PROSPECT St
General Information
Standard status
Active
Size
44,000 SF
Property subtype
Industrial
Taxes and HOA fees
Annual Taxes
$4,279
Building Details
Year Built
1957
Units
1
Listing Agency:
Berkshire Hathaway HomeServices Homesale Realty
(301) 305-8999
Listed By:
Sydney L Machat
(301) 305-8999
Source:
Elliman
Added: Apr 24
Changed: Aug 14
Last Checked: Aug 20 at 9:49AM
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 Berkshire Hathaway HomeServices Homesale Realty
Investment Insights
Based on property information with market context.
This 44,000 rentable square foot business-user property is available for sale with owner financing to pre-qualified purchasers. The building includes main floor areas and two lower levels, suitable for industrial, warehouse, flex, and manufacturing uses. A total building renovation is scheduled for completion in December 2025, modernizing the interior and exterior. An office suite is located at the front entrance. The property is zoned Industrial Restricted (IR). Constructed in several sections, the building is suited for mixed or multiple uses and offers room for future expansion. It features a fenced impound yard, with a portion in sheltered space, including new roll-up access to a lower level. The property is ideal for Frederick-based companies looking to expand into the high-growth Hagerstown logistics market. It offers convenient access to I-81, I-70, and I-270, as well as the Baltimore-Washington Metro Areas. The location has a bike score of 37, indicating it is somewhat bikeable, a walk score of 54, indicating it is somewhat walkable, and a transit score of 20, indicating minimal transit options.
Key Highlights
- 44,000 Rentable sq. ft. Business‑User Property
- Total building renovation completed in Dec. 2025
- Owner financing available to pre‑qualified purchaser
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
$249,757
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
8.61%
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%
$4,995,140
$5.0M
Cap Rate 7%
$3,567,957
$3.6M
Cap Rate 9%
$2,775,078
$2.8M
Market Conditions
NOI Build-Up for 44,000 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
$396.0K $9.00/SF
− Vacancy
−$39.2K −$0.89/SF
EGI
$356.8K $8.11/SF
− OpEx
−$107.0K −$2.43/SF
NOI
$249.8K $5.68/SF
Area
Washington County, MD
Vacancy
9.90%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
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%
$4,995,140
Cap Rate 7%
$3,567,957
Cap Rate 9%
$2,775,078
Alternative Uses
Best Use
Flex RnD
$5.52M
$4.83M – $6.44M
NOI $386,529 @ 7.0% cap · market cap 13.33%
Second Best
Industrial
$3.57M
$3.12M – $4.16M
NOI $249,757 @ 7.0% cap · market cap 8.61%
Theoretical Best
Office A
$9.76M
$8.54M – $11.39M
NOI $683,211 @ 7.0% cap · market cap 23.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
872
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 21740, MD
65,619
Population
27,002
Households
2.4
Avg Household Size
39
Median Age
20%
College-Educated
86%
High-School Grad
70.9 sq mi
ZIP Area
926
Density / Sq Mi
$59,410
Median Household Income
$42,159
Median Earnings
$1,031
Median Rent
$241,600
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - 44,000 sq ft renovated flex space with owner financing.
Where is this flex space located?
The property is located at 651 N PROSPECT St Hagerstown, MD.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: 44,000 Rentable sq. ft. Business‑User Property; Total building renovation completed in Dec. 2025; Owner financing available to pre‑qualified purchaser
