Built-Out Medical Office
For Sale
$2,800,000
504 N 40th Ave, Yakima, WA 98908
COMMERCIAL - Yakima, WA
Property Size18,591 SF
Lot Size1.13 Acres
Price / SF$203.46
Days on Market106
Property Features for 504 N 40th Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
B1 - Prof Bus
Rooms
Basement
Lot features
Level, Bus Line, Paved Road
Directions
From Hwy 12, take 40th Ave Exit, follow to 40th Ave to address
Subdivision
4 - NW Yakima 40th/80th
Standard status
Active
APN
181322-21450
Size
13,762 SF
Lot size
1.13 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
7359
Utilities
Heating system
Forced Air, Natural Gas
Cooling system
Central Air
Water source
Public
Amenities
27 exam rooms
private lab
2 procedure rooms
7 private offices
breakroom
conference room
gym
Building Details
Year built
1993
Flooring type
Vinyl, Carpet
Building materials
Frame
Roof type
Metal
Listing Agency:
Keller Williams Yakima Valley · Keller Williams Realty
(509) 966-1020
Listed By:
Russ Roberts, · License #26317
(509) 949-2192
Added: May 19
Changed: Aug 4
Last Checked: Sep 1 at 10:06PM
MLS# 26-1473
Copyright © 2026 Yakima Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
A built-out medical facility offering a total of 18,591 square feet. The layout includes 12,083 square feet of finished ground floor, 2,730 square feet of finished basement, and 3,778 square feet of unfinished basement. Interior improvements are optimized for healthcare use, with 27 exam rooms, a private lab, 2 procedure rooms, 7 private offices, a breakroom, a conference room, and a gym.
The property sits on approximately 1.13 acres and is zoned B-1. It includes 70 designated parking spaces. Reported infrastructure features include a metal roof, a fully sprinkled interior, and reserved space for a future basement elevator.
The building is currently leased to MultiCare Hospital through March 2027.
The property sits on approximately 1.13 acres and is zoned B-1. It includes 70 designated parking spaces. Reported infrastructure features include a metal roof, a fully sprinkled interior, and reserved space for a future basement elevator.
The building is currently leased to MultiCare Hospital through March 2027.
Key Highlights
- 18,591 sq. ft. built‑out medical facility leased to MultiCare Hospital through March 2027
- Includes 12,083 sq. ft. finished ground floor plus 2,730 sq. ft. finished basement and 3,778 sq. ft. unfinished basement
- 27 exam rooms, private lab, 2 procedure rooms, 7 private offices, breakroom, conference room, and gym
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
$146,724
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
5.24%
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%
$2,934,480
$2.9M
Cap Rate 7%
$2,096,057
$2.1M
Cap Rate 9%
$1,630,267
$1.6M
Market Conditions
NOI Build-Up for 13,762 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
$262.6K $19.08/SF
− Vacancy
−$18.0K −$1.31/SF
EGI
$244.5K $17.77/SF
− OpEx
−$97.8K −$7.11/SF
NOI
$146.7K $10.66/SF
Area
Yakima County, WA
Vacancy
6.87%
Lease Rate
$19.08 /SF/Yr
Expense Ratio
40.00%
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%
$2,934,480
Cap Rate 7%
$2,096,057
Cap Rate 9%
$1,630,267
Alternative Uses
Best Use
Healthcare Medical
$2.10M
$1.83M – $2.45M
NOI $146,724 @ 7.0% cap · market cap 5.24%
Second Best
Office B
$2.09M
$1.83M – $2.44M
NOI $146,493 @ 7.0% cap · market cap 5.23%
Theoretical Best
Office A
$2.79M
$2.45M – $3.26M
NOI $195,632 @ 7.0% cap · market cap 6.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Sprinkler system
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
671
Businesses Nearby
Explore this area
Business Placement
Demographics for 98908, WA
38,205
Population
15,496
Households
2.5
Avg Household Size
42
Median Age
33%
College-Educated
91%
High-School Grad
105.7 sq mi
ZIP Area
361
Density / Sq Mi
$80,266
Median Household Income
$43,789
Median Earnings
$1,302
Median Rent
$356,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - 18,591 sf medical facility includes exam rooms, procedure rooms, and private lab, with parking and reserved elevator space.
Where is this medical center located?
The property is located at 504 N 40th Ave Yakima, WA.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: 18,591 sq. ft. built‑out medical facility leased to MultiCare Hospital through March 2027; Includes 12,083 sq. ft. finished ground floor plus 2,730 sq. ft. finished basement and 3,778 sq. ft. unfinished basement; 27 exam rooms, private lab, 2 procedure rooms, 7 private offices, breakroom, conference room, and gym
