Flex Office Warehouse with
For Sale
Contact for pricing
11521 E Marginal Way, Tukwila, WA 98168
Multistory office over warehouse space includes mezzanines, 24’ clear height, and 8 loading doors.
Property Size31,363 SF
Lot Size2.10 Acres
Price / SF$272.61
Days on Market168
Property Features for 11521 E Marginal Way
General Information
Standard status
Active
Size
31,363 SF
Lot size
2.10 Acres
Property subtype
INDUSTRIAL
Zoning
MIC/L
Warehouse & Industrial
Clear Height
24 ft
Office Build-Out
14,000 SF
Mezzanine
6,000 SF
Dock-High Doors
6
Drive-In Doors
2
Additional Details
Gross Income
$487,775
Building Details
Year Built
1996
Building Size
31,363 SF
Listing Agency:
Newmark
(425) 362-1410
Listed By:
Thad Mallory, SIOR
(425) 362-1410
Source:
Moodyscre
Added: Feb 23
Changed: Aug 8
Last Checked: Aug 9 at 10:44AM
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 Newmark
Investment Insights
Based on property information with market context.
This for-sale flex office warehouse totals 31,363 SF of building area on 91,608 SF of land. The property includes approximately 14,000 SF of office space across two stories, with about 8,000 SF on the north side and about 6,000 SF on the south side. Each side includes mezzanine area of approximately 3,000 SF. Warehouse clear height is 24’.
Loading is supported by 6 dock-high doors and 2 grade-level doors. The building was constructed in 1996, and the roof and HVAC have been replaced within the last decade.
The property is zoned MIC/L. The current lease is in place with an expiration of 10/1/2027 (lease expires 9/30/27), with current rent stated as $40,647.95 per month on an NNN basis, increasing to $41,878.67 on 10/1/26.
Loading is supported by 6 dock-high doors and 2 grade-level doors. The building was constructed in 1996, and the roof and HVAC have been replaced within the last decade.
The property is zoned MIC/L. The current lease is in place with an expiration of 10/1/2027 (lease expires 9/30/27), with current rent stated as $40,647.95 per month on an NNN basis, increasing to $41,878.67 on 10/1/26.
Key Highlights
- 91,608 SF total land area with 31,363 SF building footprint
- Office space totals ~14,000 SF (two stories), including north office ~8,000 SF and south office ~6,000 SF
- Warehouse includes mezzanines (3,000 SF mezz on both north and south sides) and 24’ clear height
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
$661,352
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
7.74%
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%
$13,227,040
$13.2M
Cap Rate 7%
$9,447,886
$9.4M
Cap Rate 9%
$7,348,356
$7.3M
Market Conditions
NOI Build-Up for 31,363 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
$1.13M $36.00/SF
− Vacancy
−$247.3K −$7.88/SF
EGI
$881.8K $28.12/SF
− OpEx
−$220.5K −$7.03/SF
NOI
$661.4K $21.09/SF
Area
King County, WA
Vacancy
21.90%
Lease Rate
$36.00 /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%
$13,227,040
Cap Rate 7%
$9,447,886
Cap Rate 9%
$7,348,356
Alternative Uses
Best Use
Office B
$9.45M
$8.27M – $11.02M
NOI $661,352 @ 7.0% cap · market cap 7.74%
Second Best
Flex RnD
$6.43M
$5.63M – $7.50M
NOI $450,266 @ 7.0% cap · market cap 5.27%
Theoretical Best
Office A
$12.56M
$10.99M – $14.66M
NOI $879,318 @ 7.0% cap · market cap 10.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
24 ft
Clear height
6
Dock-high doors
2
Drive-in doors
Location Intelligence
Trade Area within ½ mile
355
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98168, WA
36,389
Population
13,338
Households
2.7
Avg Household Size
37
Median Age
24%
College-Educated
79%
High-School Grad
8.8 sq mi
ZIP Area
4,135
Density / Sq Mi
$84,937
Median Household Income
$44,630
Median Earnings
$1,724
Median Rent
$500,600
Median Home Value
Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Multistory office over warehouse space includes mezzanines, 24’ clear height, and 8 loading doors.
Where is this flex space located?
The property is located at 11521 E Marginal Way Tukwila, WA.
What is the asking price?
The asking price for this property is $8,550,000.
What are key features of this property?
This property features: 91,608 SF total land area with 31,363 SF building footprint; Office space totals ~14,000 SF (two stories), including north office ~8,000 SF and south office ~6,000 SF; Warehouse includes mezzanines (3,000 SF mezz on both north and south sides) and 24’ clear height
