Single-Tenant Office
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For Sale
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1117 E Division St, Mount Vernon, WA 98274
PO-zoned professional office asset near Skagit Valley Hospital and the area’s medical community.
Property Size2,688 SF
Lot Size0.15 Acres
Price / SF$585.94
Days on Market6
Property Features for 1117 E Division St
General Information
Standard status
Active
Size
2,688 SF
Lot size
0.15 Acres
Property subtype
OFFICE
Zoning
PO
Additional Details
Cap Rate
5.7%
Building Details
Buildings
1
Building Size
2,688 SF
Tenancy
Single
Listing Agency:
Learned Commercial, Inc.
(360) 855-8875
Listed By:
Jarrod Ball · License #22026577
(360) 855-8875
Source:
Moodyscre
Added: Aug 27
Changed: Aug 31
Last Checked: Aug 31 at 4:03PM
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 Learned Commercial, Inc.
Investment Insights
Based on property information with market context.
Located at 1117 E Division St in Mount Vernon, this 2,688-square-foot office building occupies approximately 0.15 acres and carries PO: Professional Office zoning. The property was developed for LabCorp, which currently occupies the building as its sole tenant.
The asset is positioned near Skagit Valley Hospital and the broader Skagit County medical community. A new 5-year single-tenant net lease is in place, with annual rent increases and a 5.7% cap rate in the initial year.
The asset is positioned near Skagit Valley Hospital and the broader Skagit County medical community. A new 5-year single-tenant net lease is in place, with annual rent increases and a 5.7% cap rate in the initial year.
Key Highlights
- 2,688 SF office building on approximately 0.15 acres
- PO: Professional Office zoning
- LabCorp is the current sole occupant
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
$57,433
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
3.65%
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%
$1,148,660
$1.1M
Cap Rate 7%
$820,471
$820.5K
Cap Rate 9%
$638,144
$638.1K
Market Conditions
NOI Build-Up for 2,688 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
$96.4K $35.88/SF
− Vacancy
−$19.9K −$7.39/SF
EGI
$76.6K $28.49/SF
− OpEx
−$19.1K −$7.12/SF
NOI
$57.4K $21.37/SF
Area
Skagit County, WA
Vacancy
20.60%
Lease Rate
$35.88 /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%
$1,148,660
Cap Rate 7%
$820,471
Cap Rate 9%
$638,144
Alternative Uses
Best Use
Office B
$820.5K
$717.9K – $957.2K
NOI $57,433 @ 7.0% cap · market cap 3.65%
Second Best
Healthcare Medical
$277.9K
$243.2K – $324.2K
NOI $19,454 @ 7.0% cap · market cap 1.24%
Theoretical Best
Office A
$1.09M
$956.6K – $1.28M
NOI $76,526 @ 7.0% cap · market cap 4.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
407
Businesses Nearby
Explore this area
Business Placement
Demographics for 98274, WA
18,949
Population
7,868
Households
2.4
Avg Household Size
43
Median Age
33%
College-Educated
93%
High-School Grad
143.1 sq mi
ZIP Area
132
Density / Sq Mi
$93,762
Median Household Income
$46,724
Median Earnings
$1,716
Median Rent
$492,400
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?
Office building - PO-zoned professional office asset near Skagit Valley Hospital and the area’s medical community.
Where is this office building located?
The property is located at 1117 E Division St Mount Vernon, WA.
What is the asking price?
The asking price for this property is $1,575,000.
What are key features of this property?
This property features: 2,688 SF office building on approximately 0.15 acres; PO: Professional Office zoning; LabCorp is the current sole occupant
