First-Floor End-Unit
For Sale
$260,000
8 RUSSELL AVENUE, Gaithersburg, MD 20877
Office unit with central air, substantial parking, and access to regional rail and major roadways.
Property Size1,086 SF
Price / SF$239.41
Days on Market10
Property Features for 8 RUSSELL AVENUE
General Information
Standard status
Active
Size
1,086 SF
Total Parking Spaces
41
Property subtype
Office
Site & Location
Highway Access
Yes
Public Transit
Yes
Additional Details
Floor
First Floor
Taxes and HOA fees
Annual Taxes
$3,260
Amenities
Central Air
3
Parking.
Lot.
Building Details
Year Built
1988
Buildings
1
Stories
4
Listing Agency:
CapStar Properties
(240) 994-5443
Listed By:
Dongqing Zhang · License #36511
(240) 994-5443
Source:
Xome
Added: Aug 8
Changed: Aug 16
Last Checked: Aug 17 at 4:10AM
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 CapStar Properties
Investment Insights
Based on property information with market context.
This 1,086-square-foot office unit occupies a first-floor end position within a mixed-use building completed in 1988. Central air is installed, and the property is configured as an office condominium. Three stories of residential units are located above the commercial space. The suite may suit an owner-occupant or investor, with professional uses such as law, medical and healthcare, accounting, insurance, consulting, and other services subject to applicable zoning and use approvals.
Parking includes 30 surface spaces and 11 below-level spaces. The property is within walking distance of the MARC train station in Old Town Gaithersburg, with access to I-270, MD-370, the ICC, and Shady Grove Metro described as minutes away. The address is 8 Russell Avenue, Gaithersburg, Maryland 20877.
Parking includes 30 surface spaces and 11 below-level spaces. The property is within walking distance of the MARC train station in Old Town Gaithersburg, with access to I-270, MD-370, the ICC, and Shady Grove Metro described as minutes away. The address is 8 Russell Avenue, Gaithersburg, Maryland 20877.
Key Highlights
- 1,086‑square‑foot first‑floor end‑unit office
- 30 surface parking spaces plus 11 below‑level spaces
- Central air conditioning
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
$13,272
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
5.10%
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%
$265,440
$265.4K
Cap Rate 7%
$189,600
$189.6K
Cap Rate 9%
$147,467
$147.5K
Market Conditions
NOI Build-Up for 1,086 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
$21.4K $19.68/SF
− Vacancy
−$3.7K −$3.38/SF
EGI
$17.7K $16.30/SF
− OpEx
−$4.4K −$4.07/SF
NOI
$13.3K $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%
$265,440
Cap Rate 7%
$189,600
Cap Rate 9%
$147,467
Alternative Uses
Best Use
Office B
$189.6K
$165.9K – $221.2K
NOI $13,272 @ 7.0% cap · market cap 5.10%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$382.0K
$334.3K – $445.7K
NOI $26,742 @ 7.0% cap · market cap 10.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,064
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 - Office unit with central air, substantial parking, and access to regional rail and major roadways.
Where is this office units located?
The property is located at 8 RUSSELL AVENUE Gaithersburg, MD.
What is the asking price?
The asking price for this property is $260,000.
What are key features of this property?
This property features: 1,086‑square‑foot first‑floor end‑unit office; 30 surface parking spaces plus 11 below‑level spaces; Central air conditioning
