Retail Property Near Highway
For Sale
$3,200,000
Pending
5116 196th St SW, Lynnwood, WA 98036
Retail property with value-add opportunity near Lynnwood Light Rail.
Property Size18,670 SF
Days on Market502
Property Features for 5116 196th St SW
General Information
Standard status
Pending
Size
18,670 SF
Property subtype
Commercial
Building Details
Year Built
1968
Listing Agency:
NAI PUGET SOUND PROPERTIES
(425) 652-1722
Listed By:
BLAKE STEDMAN · License #WA2495
Source:
Corcoran
Added: Mar 26, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:42AM
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 retail property is situated between Highway 99 and I-5, located off 196th Street SW. The property benefits from excellent visibility and proximity to Lynnwood Light Rail. It features tenants in place with a low vacancy rate, presenting a value-add opportunity at below-market rates. The property provides a parking ratio of 3 per 1,000. It consists of 10 units and has a size of 18670 square feet.
Key Highlights
- Excellent visibility and proximity to Lynnwood Light Rail
- Value‑add opportunity at below‑market rates
- Tenants in place with low vacancy
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
$263,095
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
8.22%
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%
$5,261,900
$5.3M
Cap Rate 7%
$3,758,500
$3.8M
Cap Rate 9%
$2,923,278
$2.9M
Market Conditions
NOI Build-Up for 18,670 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
$403.3K $21.60/SF
− Vacancy
−$27.4K −$1.47/SF
EGI
$375.8K $20.13/SF
− OpEx
−$112.8K −$6.04/SF
NOI
$263.1K $14.09/SF
Area
Snohomish County, WA
Vacancy
6.80%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$5,261,900
Cap Rate 7%
$3,758,500
Cap Rate 9%
$2,923,278
Alternative Uses
Best Use
Retail
$3.76M
$3.29M – $4.38M
NOI $263,095 @ 7.0% cap · market cap 8.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.21M
$4.56M – $6.07M
NOI $364,472 @ 7.0% cap · market cap 11.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,222
Businesses Nearby
706k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 25%
Apparel 21%
Dining 14%
Leisure 14%
AMC Alderwood Mall 16
Leisure
99,551 visits/mo
0.4 miles
Whole Foods Market
Groceries
74,122 visits/mo
0.3 miles
Marshalls
Apparel
59,680 visits/mo
0.2 miles
Barnes & Noble
Shops & Services
52,827 visits/mo
0.4 miles
Chick-fil-A
Dining
49,625 visits/mo
0.2 miles
Demographics for 98036, WA
42,248
Population
17,228
Households
2.5
Avg Household Size
39
Median Age
39%
College-Educated
92%
High-School Grad
9.6 sq mi
ZIP Area
4,401
Density / Sq Mi
$89,566
Median Household Income
$54,455
Median Earnings
$1,686
Median Rent
$693,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Lynnwood Square — 19800 44th Ave W, Lynnwood, WA 98036
- Lynnwood Crossroads — 6218 196th St SW, Lynnwood, WA 98036
- Lynnwood Center — 19701 Hwy 99, Lynnwood, WA 98036
- Islamic Center Faizan-e-Madinah — 4202 198th St SW #2, Lynnwood, WA 98036
- James Village — 19520 Hwy 99 #103, Lynnwood, WA 98036
Frequently Asked Questions
What type of property is this?
Shopping center - Retail property with value-add opportunity near Lynnwood Light Rail.
Where is this shopping center located?
The property is located at 5116 196th St SW Lynnwood, WA.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Excellent visibility and proximity to Lynnwood Light Rail; Value‑add opportunity at below‑market rates; Tenants in place with low vacancy
