Top-Floor Office
For Sale
Contact for pricing
903 Russell Ave, Gaithersburg, MD 20879
Full top-floor office condominium offering private offices, conference rooms, kitchenettes, and dedicated workplace support areas.
Property Size4,657 SF
Price / SF$386.51
Days on Market201
Property Features for 903 Russell Ave
General Information
Standard status
Active
Size
4,657 SF
Property subtype
OFFICE
Space & Availability
Floor
4
Furnished
Yes
Additional Details
Highway Access
Yes
Office Units
2
Building Details
Buildings
1
Stories
4
Listing Agency:
Jay Clogg Realty Group, Inc.
(301) 340-9400
Listed By:
Jay Clogg · License #67699
Source:
Moodyscre
Added: Feb 11
Changed: Aug 30
Last Checked: Aug 31 at 12:25AM
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 Jay Clogg Realty Group, Inc.
Investment Insights
Based on property information with market context.
Two adjoining office condominium units comprise the entire top floor of a four-story office building, providing a substantial professional setting with a varied mix of private and collaborative areas. The interior includes a reception area, five windowed offices, two glass-enclosed conference rooms, a workspace for more than 10 cubicles, two kitchenettes, a break room, file storage, an IT room, and a mail and file room. Eight HVAC systems serve the space, and the existing furniture may remain if desired.
The property is at 903 Russell Ave in Gaithersburg, one block from Route 355. Access is positioned near the Montgomery Village Avenue and Watkins Mill Road exits from I-270. Free parking is available on site.
The property is at 903 Russell Ave in Gaithersburg, one block from Route 355. Access is positioned near the Montgomery Village Avenue and Watkins Mill Road exits from I-270. Free parking is available on site.
Key Highlights
- 4,657 SF of office condominium space across two contiguous units
- Entire top floor of a 4‑story office building
- Reception area, 5 windowed offices, and conference rooms for 12 and 6
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
$56,915
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
3.16%
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%
$1,138,300
$1.1M
Cap Rate 7%
$813,071
$813.1K
Cap Rate 9%
$632,389
$632.4K
Market Conditions
NOI Build-Up for 4,657 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
$91.6K $19.68/SF
− Vacancy
−$15.8K −$3.38/SF
EGI
$75.9K $16.30/SF
− OpEx
−$19.0K −$4.07/SF
NOI
$56.9K $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%
$1,138,300
Cap Rate 7%
$813,071
Cap Rate 9%
$632,389
Alternative Uses
Best Use
Office B
$813.1K
$711.4K – $948.6K
NOI $56,915 @ 7.0% cap · market cap 3.16%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.64M
$1.43M – $1.91M
NOI $114,676 @ 7.0% cap · market cap 6.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,911
Businesses Nearby
Explore this area
Business Placement
Demographics for 20879, MD
26,176
Population
9,008
Households
2.9
Avg Household Size
37
Median Age
42%
College-Educated
87%
High-School Grad
8.6 sq mi
ZIP Area
3,044
Density / Sq Mi
$105,109
Median Household Income
$49,269
Median Earnings
$1,895
Median Rent
$433,500
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 - Full top-floor office condominium offering private offices, conference rooms, kitchenettes, and dedicated workplace support areas.
Where is this office units located?
The property is located at 903 Russell Ave Gaithersburg, MD.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: 4,657 SF of office condominium space across two contiguous units; Entire top floor of a 4‑story office building; Reception area, 5 windowed offices, and conference rooms for 12 and 6
