Open-Plan Office
For Sale
$230,000
438 N FREDERICK AVE #455 455, Gaithersburg, MD 20877
Configured with computer-server improvements, glass-enclosed offices, and shared kitchen and conference facilities.
Property Size888 SF
Price / SF$259.01
Days on Market12
Property Features for 438 N FREDERICK AVE #455 455
General Information
Standard status
Active
Size
888 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
kitchen
conference room
Listing Agency:
Century 21 Redwood Realty
(301) 208-2288
Listed By:
Melissa M Atherholt · License #RSR003093
Source:
Sandrasellstheshore
Added: Aug 20
Changed: Aug 29
Last Checked: Aug 30 at 5:19PM
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.
This 888-square-foot office unit at the Fairview Building features an open work area supported by upgrades for computer servers. The layout also includes two semi-private executive offices enclosed in glass, each with window views. A kitchen and conference room are available on the same floor for shared use.
Two spaces, identified as #435 and #455, are available for businesses requiring additional square footage. The property includes free parking for employees and customers, while both available spaces offer views toward the Montgomery County Fairgrounds. The unit is offered for sale or lease.
Two spaces, identified as #435 and #455, are available for businesses requiring additional square footage. The property includes free parking for employees and customers, while both available spaces offer views toward the Montgomery County Fairgrounds. The unit is offered for sale or lease.
Key Highlights
- 888‑square‑foot office unit in the Fairview Building
- Open workfloor upgraded for computer servers
- 2 semi‑private glass‑enclosed executive offices with window views
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
$10,852
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
4.72%
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%
$217,040
$217.0K
Cap Rate 7%
$155,029
$155.0K
Cap Rate 9%
$120,578
$120.6K
Market Conditions
NOI Build-Up for 888 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
$17.5K $19.68/SF
− Vacancy
−$3.0K −$3.38/SF
EGI
$14.5K $16.30/SF
− OpEx
−$3.6K −$4.07/SF
NOI
$10.9K $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%
$217,040
Cap Rate 7%
$155,029
Cap Rate 9%
$120,578
Alternative Uses
Best Use
Office B
$155.0K
$135.7K – $180.9K
NOI $10,852 @ 7.0% cap · market cap 4.72%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$312.4K
$273.3K – $364.4K
NOI $21,866 @ 7.0% cap · market cap 9.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
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 with computer-server improvements, glass-enclosed offices, and shared kitchen and conference facilities.
Where is this office units located?
The property is located at 438 N FREDERICK AVE #455 455 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: 888‑square‑foot office unit in the Fairview Building; Open workfloor upgraded for computer servers; 2 semi‑private glass‑enclosed executive offices with window views
