Building Details

Year Built 1900

Listing Agency: Homestead Leasing & Management c***@yahoo.com Show Phone

Listed By: Robert Dent Show Phone

Source: Xome

Added: Jan 9 Changed: Aug 8 Last Checked: Aug 8 at 3:37AM

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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 Homestead Leasing & Management

Investment Insights

Based on property information with market context.

This office property presents a two-level layout with three enclosed rooms on the main floor and finished open space on the second level. The exterior retains historic character, while the interior has been updated for current office use. Public water and sewer serve the property, and the building is identified within the Central Business District.

Located at 3504 Urbana Pike in Urbana, Maryland, the property offers on-street parking. Built in 1900, it provides a compact office configuration with a combination of private rooms and flexible upper-level workspace.

Key Highlights

• Three rooms on the main level
• Finished open space on the second level
• Updated interior with historic exterior character

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

$28,287

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

3.85%

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%

$565,740 $565.7K

Cap Rate 7%

$404,100 $404.1K

Cap Rate 9%

$314,300 $314.3K

Market Conditions

NOI Build-Up for 1,544 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

$47.8K $30.96/SF

− Vacancy

−$10.1K −$6.53/SF

EGI

$37.7K $24.43/SF

− OpEx

−$9.4K −$6.11/SF

NOI

$28.3K $18.32/SF

Area

Frederick County, MD

Vacancy

21.10%

Lease Rate

$30.96 /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%

$565,740

Cap Rate 7%

$404,100

Cap Rate 9%

$314,300

Alternative Uses

Best Use

Office B

$404.1K

$353.6K – $471.5K (±1% cap)

NOI $28,287 @ 7.0% cap · market cap 3.85%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$572.1K

$500.6K – $667.5K (±1% cap)

NOI $40,049 @ 7.0% cap · market cap 5.45%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Office buildings

Suggested Use

Top Pick Auto Parts Store HVAC Service Electrical Service Kitchen & Bath Showroom Home Appliance Store Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

670

Businesses Nearby

Explore this area Business Placement

Demographics for 21704, MD

19,275

Population

6,230

Households

3.1

Avg Household Size

37

Median Age

58%

College-Educated

96%

High-School Grad

26.6 sq mi

ZIP Area

725

Density / Sq Mi

$164,457

Median Household Income

$82,145

Median Earnings

$2,395

Median Rent

$585,900

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Office building - The layout combines three main-floor rooms with finished open space above.

Where is this office building located?

The property is located at 3504 URBANA PIKE Urbana, MD.

What is the asking price?

The asking price for this property is $735,000.

What are key features of this property?

This property features: Three rooms on the main level; Finished open space on the second level; Updated interior with historic exterior character