Adaptable Office Space on
For Sale
$230,000
438 N FREDERICK Ave 455, Gaithersburg, MD 20877
Flexible office space in a convenient Gaithersburg location.
Property Size888 SF
Price / SF$259.01
Days on Market153
Property Features for 438 N FREDERICK Ave 455
General Information
Standard status
Active
Size
888 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$2,910
Building Details
Year Built
1982
Units
1
Listing Agency:
Century 21 Redwood Realty
(240) 674-2932
Listed By:
Melissa M Atherholt · License #528672
(240) 674-2932
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 2:06PM
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.
Located on Rockville Pike, this adaptable office space is situated in the Fairview Building, offering convenient access to I-270. The 888-square-foot space is suitable for various business needs. An additional space, #435, is available, offering the possibility of increased square footage. The unit, #455, features views of the Montgomery County Fairgrounds. Ample free parking is available for both employees and customers. Shared amenities include a kitchen and conference room located on the same floor. The unit has an open-concept floor plan with a large open work floor space upgraded for computer servers and two semi-private glass-enclosed executive office spaces with window views. The property is listed for sale and for rent.
Key Highlights
- Prime location directly on Rockville Pike, minutes from I‑270.
- Adaptable 888 sqft office space suitable for various business needs.
- Ample, free parking for both employees and customers.
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
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,410
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office units - Flexible office space in a convenient Gaithersburg location.
Where is this office units located?
The property is located at 438 N FREDERICK Ave 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: Prime location directly on Rockville Pike, minutes from I‑270.; Adaptable 888 sqft office space suitable for various business needs.; Ample, free parking for both employees and customers.
