Mixed-Use Campus with Industrial
New
For Sale
$3,950,000
871 Commonwealth Ave, Hagerstown, MD 21740
Three-building campus combines manufacturing, warehouse, and office space with flexible occupancy and leasing configurations.
Property Size53,379 SF
Lot Size7.01 Acres
Price / SF$73
Days on Market4
Property Features for 871 Commonwealth Ave
General Information
Standard status
Active
Size
53,379 SF
Total Parking Spaces
67
Lot size
7.01 Acres
Property subtype
Single-Tenant Industrial
Occupancy
93%
Warehouse & Industrial
Office Build-Out
11,379 SF
Drive-In Doors
6
Heavy Power
Yes
Additional Details
Cap Rate
12.96%
Highway Access
Yes
Amenities
Roughly 2.5 Years of In-Place Income with a Defined Transition Timeline
861 Commonwealth is 2019-Built with 16'9" Clear Height and Conditioned
Office Building Offers Executive-Level Finishes & Both Levels are At Grade
Regional Connectivity | 7-Min. to I-70, 11 Min. to I-81, & 4-Min. to Rt-40
Desirable Industrial Market With Low Vacancy & Brand Name Neighbors
Building Details
Building Size
53,379 SF
Year Built
1960
Buildings
3
Listed By:
Alec Schwartz · License #License(s): MD: 5014417, PA: RSR006846
(202) 536-3722
Source:
Marcusmillichap
Added: Sep 20
Last Checked: Sep 22 at 1:08PM
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 Alec Schwartz
Investment Insights
Based on property information with market context.
This mixed-use campus contains 53,379 square feet across three functionally distinct buildings on 7.01 acres. The improvements include two industrial buildings totaling 42,000 square feet and a separate 11,379-square-foot, two-story office building. The 16,000-square-foot manufacturing building at 861 Commonwealth Avenue was constructed in 2019 and includes air conditioning, heavy electrical service, reinforced floors, a 16-foot 9-inch clear height, and two drive-in doors. The 26,000-square-foot manufacturing and warehouse building at 871 Commonwealth Avenue offers clear heights from 13 feet 10 inches to 17 feet 2 inches, four drive-in doors, heavy electrical service, and reinforced floors. The 879 Commonwealth Avenue office building provides at-grade access to both levels, a modern build-out, and capacity for two tenants.
Approximately 93% of the campus is leased under two absolute NNN leases expiring November 30, 2028, and February 28, 2029. The property includes approximately 67 parking spaces and benefits from access to Interstates 70 and 81. The building configuration supports full-campus occupancy, phased use, or separate leasing of the individual structures.
Approximately 93% of the campus is leased under two absolute NNN leases expiring November 30, 2028, and February 28, 2029. The property includes approximately 67 parking spaces and benefits from access to Interstates 70 and 81. The building configuration supports full-campus occupancy, phased use, or separate leasing of the individual structures.
Key Highlights
- 53,379‑square‑foot campus on 7.01 acres with three functionally distinct buildings
- Two industrial buildings total 42,000 square feet; separate office building contains 11,379 square feet
- 861 Commonwealth Avenue includes 16‑foot 9‑inch clear height and two drive‑in doors
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
$302,995
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
7.67%
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%
$6,059,900
$6.1M
Cap Rate 7%
$4,328,500
$4.3M
Cap Rate 9%
$3,366,611
$3.4M
Market Conditions
NOI Build-Up for 53,379 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
$480.4K $9.00/SF
− Vacancy
−$47.6K −$0.89/SF
EGI
$432.9K $8.11/SF
− OpEx
−$129.9K −$2.43/SF
NOI
$303.0K $5.68/SF
Area
Washington County, MD
Vacancy
9.90%
Lease Rate
$9.00 /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%
$6,059,900
Cap Rate 7%
$4,328,500
Cap Rate 9%
$3,366,611
Alternative Uses
Best Use
Office B
$9.16M
$8.02M – $10.69M
NOI $641,329 @ 7.0% cap · market cap 16.24%
Second Best
Mixed Use
$7.55M
$6.61M – $8.81M
NOI $528,452 @ 7.0% cap · market cap 13.38%
Theoretical Best
Office A
$11.84M
$10.36M – $13.81M
NOI $828,843 @ 7.0% cap · market cap 20.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
6
Drive-in doors
93%
Occupancy
Yes
Heavy power
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
359
Businesses Nearby
Explore this area
Business Placement
Demographics for 21740, MD
65,619
Population
27,002
Households
2.4
Avg Household Size
39
Median Age
20%
College-Educated
86%
High-School Grad
70.9 sq mi
ZIP Area
926
Density / Sq Mi
$59,410
Median Household Income
$42,159
Median Earnings
$1,031
Median Rent
$241,600
Median Home Value
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Three-building campus combines manufacturing, warehouse, and office space with flexible occupancy and leasing configurations.
Where is this mixed-use property located?
The property is located at 871 Commonwealth Ave Hagerstown, MD.
What is the asking price?
The asking price for this property is $3,950,000.
What are key features of this property?
This property features: 53,379‑square‑foot campus on 7.01 acres with three functionally distinct buildings; Two industrial buildings total 42,000 square feet; separate office building contains 11,379 square feet; 861 Commonwealth Avenue includes 16‑foot 9‑inch clear height and two drive‑in doors
