Retail Space with Long-Term
For Sale
Contact for pricing
5406 Indian Head Hwy, Oxon Hill, MD 20745
Established retail building supported by a newly executed long-term lease.
Property Size8,472 SF
Price / SF$324.60
Days on Market109
Property Features for 5406 Indian Head Hwy
General Information
Standard status
Active
Size
8,472 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$165,000
Building Details
Year Built
1968
Year Renovated
2026
Tenancy
Single
Listing Agency:
Marcus & Millichap - Washington, D.C.
(443) 553-6755
Listed By:
Dean Zang · License #MD 665335
Source:
Crexi
Added: May 15
Changed: Aug 30
Last Checked: Aug 30 at 3:45PM
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 Marcus & Millichap - Washington, D.C.
Investment Insights
Based on property information with market context.
The property is an 8,472-square-foot retail building constructed in 1968. A new 15-year lease provides a defined occupancy term for the asset.
Located at 5406 Indian Head Hwy in Oxon Hill, Maryland, the property is positioned within the Washington, DC market.
Located at 5406 Indian Head Hwy in Oxon Hill, Maryland, the property is positioned within the Washington, DC market.
Key Highlights
- 8,472‑square‑foot retail building
- New 15‑year lease
- Constructed in 1968
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
$190,320
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
6.92%
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%
$3,806,400
$3.8M
Cap Rate 7%
$2,718,857
$2.7M
Cap Rate 9%
$2,114,667
$2.1M
Market Conditions
NOI Build-Up for 8,472 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
$287.7K $33.96/SF
− Vacancy
−$15.8K −$1.87/SF
EGI
$271.9K $32.09/SF
− OpEx
−$81.6K −$9.63/SF
NOI
$190.3K $22.46/SF
Area
Prince George's County, MD
Vacancy
5.50%
Lease Rate
$33.96 /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%
$3,806,400
Cap Rate 7%
$2,718,857
Cap Rate 9%
$2,114,667
Alternative Uses
Best Use
Retail
$2.72M
$2.38M – $3.17M
NOI $190,320 @ 7.0% cap · market cap 6.92%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.73M
$2.39M – $3.19M
NOI $191,312 @ 7.0% cap · market cap 6.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
538
Businesses Nearby
152k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 42%
Dining 27%
Groceries 23%
Apparel 6%
Giant
Groceries
35,009 visits/mo
0.2 miles
Dollar Tree
Shops & Services
20,393 visits/mo
0.3 miles
Popeyes Louisiana Kitchen
Dining
16,176 visits/mo
0.2 miles
Burger King
Dining
13,600 visits/mo
0.3 miles
Shell
Shops & Services
12,480 visits/mo
0.5 miles
Demographics for 20745, MD
32,024
Population
13,124
Households
2.4
Avg Household Size
36
Median Age
26%
College-Educated
82%
High-School Grad
6.5 sq mi
ZIP Area
4,927
Density / Sq Mi
$80,649
Median Household Income
$47,435
Median Earnings
$1,564
Median Rent
$351,500
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail space - Established retail building supported by a newly executed long-term lease.
Where is this retail space located?
The property is located at 5406 Indian Head Hwy Oxon Hill, MD.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: 8,472‑square‑foot retail building; New 15‑year lease; Constructed in 1968
