Vacant Auto Repair Service
For Sale
Contact for pricing
25 Chestnut St, Gaithersburg, MD 20877
Vacant auto repair and service building zoned I-1, offered vacant for owner or investor use.
Property Size25,345 SF
Lot Size1.07 Acres
Price / SF$213.06
Days on Market53
Property Features for 25 Chestnut St
General Information
Standard status
Active
Size
25,345 SF
Lot size
1.07 Acres
Property subtype
INDUSTRIAL
Zoning
I-1
Listing Agency:
Jay Clogg Realty Group, Inc.
(301) 340-9400
Listed By:
Neil Draddy · License #517997
(301) 509-8820
Source:
Moodyscre
Added: Jul 24
Changed: Sep 2
Last Checked: Sep 13 at 10:02AM
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 Jay Clogg Realty Group, Inc.
Investment Insights
Based on property information with market context.
This vacant auto repair service building is being delivered vacant for owner or investor use. The property is offered with a total of 17,550 SF vacant, giving you flexibility to plan for an auto-focused tenant or your own operations.
The property is zoned I-1 (Light Industrial). Auto repair and service is permitted in this zone, and many other uses are also allowed under the I-1 zoning category.
The lot size is 46,660 SF, providing space for industrial site operations consistent with the property’s zoning.
The property is zoned I-1 (Light Industrial). Auto repair and service is permitted in this zone, and many other uses are also allowed under the I-1 zoning category.
The lot size is 46,660 SF, providing space for industrial site operations consistent with the property’s zoning.
Key Highlights
- 17,550 SF vacant, delivered vacant for owner or investor
- Zoned I‑1 (Light Industrial)
- Auto repair and service permitted under I‑1 zoning
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
$247,494
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
4.58%
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%
$4,949,880
$4.9M
Cap Rate 7%
$3,535,629
$3.5M
Cap Rate 9%
$2,749,933
$2.7M
Market Conditions
NOI Build-Up for 25,345 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
$380.2K $15.00/SF
− Vacancy
−$26.6K −$1.05/SF
EGI
$353.6K $13.95/SF
− OpEx
−$106.1K −$4.19/SF
NOI
$247.5K $9.76/SF
Area
Montgomery County, MD
Vacancy
7.00%
Lease Rate
$15.00 /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%
$4,949,880
Cap Rate 7%
$3,535,629
Cap Rate 9%
$2,749,933
Alternative Uses
Best Use
Retail
$8.32M
$7.28M – $9.71M
NOI $582,497 @ 7.0% cap · market cap 10.79%
Second Best
Industrial
$3.54M
$3.09M – $4.12M
NOI $247,494 @ 7.0% cap · market cap 4.58%
Theoretical Best
Specialty Retail
$8.92M
$7.80M – $10.40M
NOI $624,104 @ 7.0% cap · market cap 11.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,689
Businesses Nearby
Well-served
Demand for This Use
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Auto shop - Vacant auto repair and service building zoned I-1, offered vacant for owner or investor use.
Where is this auto shop located?
The property is located at 25 Chestnut St Gaithersburg, MD.
What is the asking price?
The asking price for this property is $5,400,000.
What are key features of this property?
This property features: 17,550 SF vacant, delivered vacant for owner or investor; Zoned I‑1 (Light Industrial); Auto repair and service permitted under I‑1 zoning
