Renton/Seattle Commercial/Office Building For
For Sale
$485,000
Pending
12705 Renton Ave S, Seattle, WA 98178
Commercial/office building in Renton/Seattle, remodeled in 2000, with parking.
Property Size1,353 SF
Days on Market543
Property Features for 12705 Renton Ave S
General Information
Standard status
Pending
Size
1,353 SF
Property subtype
Commercial
Building Details
Year Built
1950
Listing Agency:
COMPASS
Listed By:
CHRISTINA CHONG
Source:
Corcoran
Added: Feb 12, 2025
Changed: Jul 6
Last Checked: Jul 23 at 9:10AM
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 COMPASS
Investment Insights
Based on property information with market context.
This 1353 SF commercial/office building is located on a corner lot in the Skyway neighborhood of Renton/Seattle. Remodeled in 2000, the building features a new roof, heat pump, interior offices, a bathroom, a break room, and a lobby area. Parking space is available. The property is suitable for office, retail, or business use, or for investment purposes as a leased space. The building includes a longstanding billboard lease that generates additional monthly income.
Key Highlights
- Remodeled in 2000 with new roof, heat pump, interior offices, bathroom, break room, and lobby.
- Billboard lease provides additional monthly income.
- Rare owner/user opportunity to own a commercial/office building.
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
$23,753
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
4.90%
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%
$475,060
$475.1K
Cap Rate 7%
$339,329
$339.3K
Cap Rate 9%
$263,922
$263.9K
Market Conditions
NOI Build-Up for 1,353 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
$41.1K $30.36/SF
− Vacancy
−$9.4K −$6.95/SF
EGI
$31.7K $23.41/SF
− OpEx
−$7.9K −$5.85/SF
NOI
$23.8K $17.56/SF
Area
Seattle, WA
Vacancy
22.90%
Lease Rate
$30.36 /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%
$475,060
Cap Rate 7%
$339,329
Cap Rate 9%
$263,922
Alternative Uses
Best Use
Office B
$339.3K
$296.9K – $395.9K
NOI $23,753 @ 7.0% cap · market cap 4.90%
Second Best
Retail
$288.2K
$252.2K – $336.2K
NOI $20,174 @ 7.0% cap · market cap 4.16%
Theoretical Best
Office A
$407.1K
$356.2K – $474.9K
NOI $28,494 @ 7.0% cap · market cap 5.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
381
Businesses Nearby
Explore this area
Business Placement
Demographics for 98178, WA
26,122
Population
10,018
Households
2.6
Avg Household Size
39
Median Age
36%
College-Educated
86%
High-School Grad
4.9 sq mi
ZIP Area
5,331
Density / Sq Mi
$93,786
Median Household Income
$52,123
Median Earnings
$1,836
Median Rent
$628,200
Median Home Value
Market
Vacancy Rate% for Office in Seattle, WA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Commercial/office building in Renton/Seattle, remodeled in 2000, with parking.
Where is this office building located?
The property is located at 12705 Renton Ave S Seattle, WA.
What is the asking price?
The asking price for this property is $485,000.
What are key features of this property?
This property features: Remodeled in 2000 with new roof, heat pump, interior offices, bathroom, break room, and lobby.; Billboard lease provides additional monthly income.; Rare owner/user opportunity to own a commercial/office building.
