Multi-Tenant Flex
For Sale
Contact for pricing
1800 Montana Avenue Northeast, Washington, DC 20002
Industrial and creative workspace with roll-up access, open bays, and PDR-1 zoning.
Property Size8,273 SF
Lot Size0.10 Acres
Price / SF$217.24
Days on Market63
Property Features for 1800 Montana Avenue Northeast
General Information
Standard status
Active
Size
8,273 SF
Total Parking Spaces
4
Lot size
0.10 Acres
Property subtype
Office
Zoning
PDR-1
Occupancy
67%
Additional Details
Three-Phase Power
Yes
Building Details
Year Built
1982
Year Renovated
2018
Buildings
1
Units
11
Tenancy
Multi
Building Size
8,273 SF
Listing Agency:
Feldman Ruel
Listed By:
Ian Ruel · License #DC BR200201389
Source:
Crexi
Added: Jun 30
Changed: Aug 30
Last Checked: Aug 30 at 3:02PM
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 Feldman Ruel
Investment Insights
Based on property information with market context.
This 8,273-square-foot flex-industrial property occupies a 4,310-square-foot lot and was built in 1982. The multi-tenant building includes a vacant first level with eight roll-up garage doors, open bay areas, ceiling heights exceeding 10 feet, and three-phase power. The upper levels are occupied, providing existing income alongside available ground-floor space.
PDR-1 zoning supports a range of industrial and creative workspace formats, including production, distribution, showroom, studio, fabrication, and service-oriented operations as supported by the property information. Originally developed as a motel, the building has been repositioned for smaller-format workspaces. Its combination of available lower-level space and occupied upper floors accommodates both operational use and continued tenancy within the same building.
PDR-1 zoning supports a range of industrial and creative workspace formats, including production, distribution, showroom, studio, fabrication, and service-oriented operations as supported by the property information. Originally developed as a motel, the building has been repositioned for smaller-format workspaces. Its combination of available lower-level space and occupied upper floors accommodates both operational use and continued tenancy within the same building.
Key Highlights
- 8,273‑square‑foot multi‑tenant flex‑industrial building on a 4,310‑square‑foot lot
- PDR‑1 zoning
- Vacant first level with eight roll‑up garage doors and open bay configurations
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
$139,508
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
7.36%
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%
$2,790,160
$2.8M
Cap Rate 7%
$1,992,971
$2.0M
Cap Rate 9%
$1,550,089
$1.6M
Market Conditions
NOI Build-Up for 8,723 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
$230.3K $26.40/SF
− Vacancy
−$15.7K −$1.80/SF
EGI
$214.6K $24.60/SF
− OpEx
−$75.1K −$8.61/SF
NOI
$139.5K $15.99/SF
Area
ZIP 20002
Vacancy
6.80%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
35.00%
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%
$2,790,160
Cap Rate 7%
$1,992,971
Cap Rate 9%
$1,550,089
Alternative Uses
Best Use
Office B
$4.16M
$3.64M – $4.85M
NOI $290,991 @ 7.0% cap · market cap 15.36%
Second Best
Flex RnD
$1.99M
$1.74M – $2.33M
NOI $139,508 @ 7.0% cap · market cap 7.36%
Theoretical Best
Office A
$4.50M
$3.94M – $5.25M
NOI $315,259 @ 7.0% cap · market cap 16.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,594
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 20002, DC
69,422
Population
38,459
Households
1.8
Avg Household Size
33
Median Age
70%
College-Educated
95%
High-School Grad
5.1 sq mi
ZIP Area
13,612
Density / Sq Mi
$114,482
Median Household Income
$82,909
Median Earnings
$2,140
Median Rent
$813,700
Median Home Value
Market
Vacancy Rate% for Office in Washington, DC
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial and creative workspace with roll-up access, open bays, and PDR-1 zoning.
Where is this flex space located?
The property is located at 1800 Montana Avenue Northeast Washington, DC.
What is the asking price?
The asking price for this property is $1,895,000.
What are key features of this property?
This property features: 8,273‑square‑foot multi‑tenant flex‑industrial building on a 4,310‑square‑foot lot; PDR‑1 zoning; Vacant first level with eight roll‑up garage doors and open bay configurations
