Downtown Tacoma Owner-User
For Sale
$1,895,000
2306 A St, Tacoma, WA 98402
8,820 SF office/warehouse with new interior in Downtown Tacoma.
Property Size8,820 SF
Price / SF$214.85
Days on Market507
Property Features for 2306 A St
General Information
Standard status
Active
Size
8,820 SF
Property subtype
Commercial
Building Details
Year Built
1922
Listing Agency:
NAI PUGET SOUND PROPERTIES
Listed By:
KYLE SCHIPPER, SIOR
Source:
Corcoran
Added: Apr 1, 2025
Changed: Aug 8
Last Checked: Aug 8 at 12:10PM
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 NAI PUGET SOUND PROPERTIES
Investment Insights
Based on property information with market context.
This property presents a potential owner-user opportunity in Downtown Tacoma, featuring a recently refreshed interior and buildout. The total area is 8,820 square feet (buyer to confirm), including 4,969 square feet of office space and 3,851 square feet of warehouse space. It is situated on a 6,000 square foot (0.14 acres) lot. The warehouse component offers an 18-foot clear height and one grade-level door. The property benefits from heavy power and is zoned WR (Warehouse/Residential District).
Key Highlights
- Brand new interior refresh and buildout
- Owner‑user opportunity in Downtown Tacoma
- Warehouse/Residential (WR) Zoning
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
$142,884
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
7.54%
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%
$2,857,680
$2.9M
Cap Rate 7%
$2,041,200
$2.0M
Cap Rate 9%
$1,587,600
$1.6M
Market Conditions
NOI Build-Up for 8,820 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
$238.1K $27.00/SF
− Vacancy
−$47.6K −$5.40/SF
EGI
$190.5K $21.60/SF
− OpEx
−$47.6K −$5.40/SF
NOI
$142.9K $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%
$2,857,680
Cap Rate 7%
$2,041,200
Cap Rate 9%
$1,587,600
Alternative Uses
Best Use
Office B
$2.04M
$1.79M – $2.38M
NOI $142,884 @ 7.0% cap · market cap 7.54%
Second Best
Warehouse
$1.64M
$1.43M – $1.91M
NOI $114,671 @ 7.0% cap · market cap 6.05%
Theoretical Best
Office A
$2.71M
$2.37M – $3.16M
NOI $189,771 @ 7.0% cap · market cap 10.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,477
Businesses Nearby
Explore this area
Business Placement
Demographics for 98402, WA
8,053
Population
4,788
Households
1.7
Avg Household Size
37
Median Age
44%
College-Educated
91%
High-School Grad
1.2 sq mi
ZIP Area
6,711
Density / Sq Mi
$54,712
Median Household Income
$43,145
Median Earnings
$1,478
Median Rent
$558,100
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 units - 8,820 SF office/warehouse with new interior in Downtown Tacoma.
Where is this office units located?
The property is located at 2306 A St Tacoma, WA.
What is the asking price?
The asking price for this property is $1,895,000.
What are key features of this property?
This property features: Brand new interior refresh and buildout; Owner‑user opportunity in Downtown Tacoma; Warehouse/Residential (WR) Zoning
