Pristine Tacoma Office
For Sale
$2,925,000
Pending
101 26th St, Tacoma, WA 98421
Well-kept three-story office building with value-add potential.
Property Size15,624 SF
Days on Market663
Property Features for 101 26th St
General Information
Standard status
Pending
Size
15,624 SF
Property subtype
Commercial
Building Details
Year Built
1909
Listing Agency:
COMMERCIAL ADVANTAGE REAL ESTATE
(253) 383-8800
Listed By:
RICHARD CLAUSON
Source:
Corcoran
Added: Oct 16, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:50AM
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 COMMERCIAL ADVANTAGE REAL ESTATE
Investment Insights
Based on property information with market context.
This pristine, three-story office building with an elevator is very well-kept inside and out, featuring beautifully landscaped grounds. The mostly fenced property is located across from the iconic Brown & Haley Almond Roca building and offers easy freeway access and great visibility. It is situated just blocks from both downtown and the Tacoma Dome. Additional features include a newer roof, HVAC system, and earthquake retrofitting. The property includes a 37-space parking lot, which the owner has previously rented out for Tacoma Dome events to generate additional revenue. The third floor provides views of the Port. The property size is 15624 square feet.
Key Highlights
- Sales price is under tax‑assessed value, offering value‑add potential.
- Pristine, well‑kept 3‑story office building with elevator.
- Excellent location: easy freeway access, great visibility, blocks from downtown and Tacoma Dome.
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
$253,109
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
8.65%
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%
$5,062,180
$5.1M
Cap Rate 7%
$3,615,843
$3.6M
Cap Rate 9%
$2,812,322
$2.8M
Market Conditions
NOI Build-Up for 15,624 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
$421.8K $27.00/SF
− Vacancy
−$84.4K −$5.40/SF
EGI
$337.5K $21.60/SF
− OpEx
−$84.4K −$5.40/SF
NOI
$253.1K $16.20/SF
Area
Tacoma, WA
Vacancy
20.00%
Lease Rate
$27.00 /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%
$5,062,180
Cap Rate 7%
$3,615,843
Cap Rate 9%
$2,812,322
Alternative Uses
Best Use
Office B
$3.62M
$3.16M – $4.22M
NOI $253,109 @ 7.0% cap · market cap 8.65%
Second Best
Retail
$2.69M
$2.35M – $3.13M
NOI $188,004 @ 7.0% cap · market cap 6.43%
Theoretical Best
Office A
$4.80M
$4.20M – $5.60M
NOI $336,166 @ 7.0% cap · market cap 11.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,296
Businesses Nearby
Explore this area
Business Placement
Demographics for 98421, WA
1,239
Population
78
Households
15.9
Avg Household Size
34
Median Age
25%
College-Educated
98%
High-School Grad
6.5 sq mi
ZIP Area
191
Density / Sq Mi
$1,273
Median Rent
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Well-kept three-story office building with value-add potential.
Where is this office building located?
The property is located at 101 26th St Tacoma, WA.
What is the asking price?
The asking price for this property is $2,925,000.
What are key features of this property?
This property features: Sales price is under tax‑assessed value, offering value‑add potential.; Pristine, well‑kept 3‑story office building with elevator.; Excellent location: easy freeway access, great visibility, blocks from downtown and Tacoma Dome.
