Historic Firehouse Office/Community
For Sale
$1,550,000
900 MONTGOMERY STREET, Laurel, MD 20707
Renovated historic building near Laurel's Main Street.
Property Size6,636 SF
Price / SF$233.57
Days on Market150
Property Features for 900 MONTGOMERY STREET
General Information
Standard status
Active
Size
6,636 SF
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$21,619
Building Details
Building Size
6,636 SF
Year Built
1891
Listing Agency:
Feldman Ruel Urban Property Advisors
(202) 318-6800
Listed By:
Ian Ruel · License #5005944
(202) 318-6800
Source:
Kerishull
Added: Mar 27
Changed: Aug 23
Last Checked: Aug 21 at 9:35PM
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 Feldman Ruel Urban Property Advisors
Investment Insights
Based on property information with market context.
The property at 900 Montgomery Street in Laurel, Maryland, is a historic, three-level former firehouse converted into office and community space. The building has 6,677 square feet of space and is located less than one-quarter mile from Laurel's Historic Main Street. Originally constructed in 1891, the building once housed The Phelps and Shaffer Co., Laurel’s first department store, and later served as headquarters for the Laurel Volunteer Fire Department. From 1954 to 1972, it functioned as Laurel’s City Hall, police headquarters, and jail. Fully renovated in 2008, the interior features high ceilings and exposed brick. The property also features 40 solar panels producing peak capacity of 8.40 kW, which may substantially offset electric usage costs. The property benefits from a nonexclusive parking easement across 9th Street at Alice B. McCullough Park. The property offers an exceptional opportunity for an organization seeking a unique headquarters or community space.
Key Highlights
- Historic former firehouse converted to office and community space.
- Delivered vacant at closing.
- Fully renovated in 2008 with high ceilings and exposed brick.**
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
$46,525
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
3.00%
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%
$930,500
$930.5K
Cap Rate 7%
$664,643
$664.6K
Cap Rate 9%
$516,944
$516.9K
Market Conditions
NOI Build-Up for 6,636 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
$75.7K $11.40/SF
− Vacancy
−$13.6K −$2.05/SF
EGI
$62.0K $9.35/SF
− OpEx
−$15.5K −$2.34/SF
NOI
$46.5K $7.01/SF
Area
Anne Arundel County, MD
Vacancy
18.00%
Lease Rate
$11.40 /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%
$930,500
Cap Rate 7%
$664,643
Cap Rate 9%
$516,944
Alternative Uses
Best Use
Office B
$664.6K
$581.6K – $775.4K
NOI $46,525 @ 7.0% cap · market cap 3.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.94M
$1.70M – $2.26M
NOI $135,884 @ 7.0% cap · market cap 8.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,057
Businesses Nearby
Explore this area
Business Placement
Demographics for 20707, MD
37,702
Population
15,146
Households
2.5
Avg Household Size
37
Median Age
45%
College-Educated
89%
High-School Grad
12.6 sq mi
ZIP Area
2,992
Density / Sq Mi
$104,093
Median Household Income
$58,633
Median Earnings
$1,880
Median Rent
$411,200
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 building - Renovated historic building near Laurel's Main Street.
Where is this office building located?
The property is located at 900 MONTGOMERY STREET Laurel, MD.
What is the asking price?
The asking price for this property is $1,550,000.
What are key features of this property?
This property features: Historic former firehouse converted to office and community space.; Delivered vacant at closing.; Fully renovated in 2008 with high ceilings and exposed brick.**
