Historic Tacoma Building Retail/Office
For Sale
$605,522
Pending
728 Broadway, Tacoma, WA 98402
2,425 SF first-floor condo in historic Tacoma building.
Property Size2,425 SF
Days on Market610
Property Features for 728 Broadway
General Information
Standard status
Pending
Size
2,425 SF
Property subtype
Commercial
Building Details
Year Built
1917
Listing Agency:
TIMOTHY JOHNSON COMMERCIAL PROPERTIES, LLC
(253) 209-9999
Listed By:
TIMOTHY JOHNSON
Source:
Corcoran
Added: Dec 10, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:41AM
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 TIMOTHY JOHNSON COMMERCIAL PROPERTIES, LLC
Investment Insights
Based on property information with market context.
This 2,425 square foot first-floor condominium is located within the historic 728 Broadway Building. Originally a mixed-use space, the unit is fully built out with both office and retail features. Suite 1B includes nearly floor-to-ceiling paned glass windows, private offices, and a kitchenette. Both units share a secure common entry on Broadway.
Key Highlights
- Located in the historic 728 Broadway Building (built in 1917).
- Large 2,425sf first‑floor unit.
- Features nearly floor‑to‑ceiling paned glass windows.
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
$39,285
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
6.49%
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%
$785,700
$785.7K
Cap Rate 7%
$561,214
$561.2K
Cap Rate 9%
$436,500
$436.5K
Market Conditions
NOI Build-Up for 2,425 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
$65.5K $27.00/SF
− Vacancy
−$13.1K −$5.40/SF
EGI
$52.4K $21.60/SF
− OpEx
−$13.1K −$5.40/SF
NOI
$39.3K $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%
$785,700
Cap Rate 7%
$561,214
Cap Rate 9%
$436,500
Alternative Uses
Best Use
Office B
$561.2K
$491.1K – $654.8K
NOI $39,285 @ 7.0% cap · market cap 6.49%
Second Best
Retail
$416.9K
$364.8K – $486.3K
NOI $29,180 @ 7.0% cap · market cap 4.82%
Theoretical Best
Office A
$745.4K
$652.2K – $869.6K
NOI $52,176 @ 7.0% cap · market cap 8.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,596
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 - 2,425 SF first-floor condo in historic Tacoma building.
Where is this office units located?
The property is located at 728 Broadway Tacoma, WA.
What is the asking price?
The asking price for this property is $605,522.
What are key features of this property?
This property features: Located in the historic 728 Broadway Building (built in 1917).; Large 2,425sf first‑floor unit.; Features nearly floor‑to‑ceiling paned glass windows.
