Office Unit with Conference
For Sale
$230,000
438 N FREDERICK AVE #440 440, Gaithersburg, MD 20877
Configured for small-business occupancy with kitchen access and parking for occupants and clients.
Property Size1,192 SF
Price / SF$192.95
Days on Market43
Property Features for 438 N FREDERICK AVE #440 440
General Information
Standard status
Active
Size
1,192 SF
Additional Details
Office Units
1
Amenities
conference room
kitchen
Building Details
Tenancy
Single
Listing Agency:
Century 21 Redwood Realty
(301) 208-2288
Listed By:
Melissa M Atherholt · License #RSR003093
Source:
Sandrasellstheshore
Added: Jul 20
Changed: Aug 29
Last Checked: Aug 30 at 5:42PM
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 Century 21 Redwood Realty
Investment Insights
Based on property information with market context.
Suite 440 at 438 N Frederick Ave in Gaithersburg provides 1,192 square feet of office space suited to a small-business operation. The suite is supported by access to a large conference room and kitchen located on the same floor, along with parking for business users and visitors.
An existing lease remains in place through 2/28/26. Additional suites are available within the same building and on the same floor, creating options for buyers or occupants evaluating a multi-suite setting.
An existing lease remains in place through 2/28/26. Additional suites are available within the same building and on the same floor, creating options for buyers or occupants evaluating a multi-suite setting.
Key Highlights
- 1,192 sq ft office suite at 438 N FREDERICK AVE #440, Gaithersburg, MD 20877
- Lease in place through 2/28/26
- Large conference room and kitchen available on the same floor
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
$14,568
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
6.33%
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%
$291,360
$291.4K
Cap Rate 7%
$208,114
$208.1K
Cap Rate 9%
$161,867
$161.9K
Market Conditions
NOI Build-Up for 1,192 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
$23.5K $19.68/SF
− Vacancy
−$4.0K −$3.38/SF
EGI
$19.4K $16.30/SF
− OpEx
−$4.9K −$4.07/SF
NOI
$14.6K $12.22/SF
Area
Montgomery County, MD
Vacancy
17.20%
Lease Rate
$19.68 /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%
$291,360
Cap Rate 7%
$208,114
Cap Rate 9%
$161,867
Alternative Uses
Best Use
Office B
$208.1K
$182.1K – $242.8K
NOI $14,568 @ 7.0% cap · market cap 6.33%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$419.3K
$366.9K – $489.2K
NOI $29,352 @ 7.0% cap · market cap 12.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,226
Businesses Nearby
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
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Configured for small-business occupancy with kitchen access and parking for occupants and clients.
Where is this office units located?
The property is located at 438 N FREDERICK AVE #440 440 Gaithersburg, MD.
What is the asking price?
The asking price for this property is $230,000.
What are key features of this property?
This property features: 1,192 sq ft office suite at 438 N FREDERICK AVE #440, Gaithersburg, MD 20877; Lease in place through 2/28/26; Large conference room and kitchen available on the same floor
