Pioneer Square Commercial
For Sale
$925,000
Pending
512 1st Ave S, Seattle, WA 98104
Classic brick condo in vibrant Pioneer Square neighborhood.
Property Size2,925 SF
Days on Market490
Property Features for 512 1st Ave S
General Information
Standard status
Pending
Size
2,925 SF
Property subtype
Commercial
Building Details
Year Built
1909
Listing Agency:
WEST COAST COMMERCIAL REALTY, LLC
Listed By:
BLAKE TAYLOR
Source:
Corcoran
Added: Apr 10, 2025
Changed: Jul 6
Last Checked: Jul 23 at 7:36AM
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 WEST COAST COMMERCIAL REALTY, LLC
Investment Insights
Based on property information with market context.
Located in Seattle's historic Pioneer Square neighborhood, The Florentine was built in 1909 and converted to condominiums in 1991. Unit 520-C is a ground-floor commercial condominium currently owner-occupied as office/retail space. The property features soaring ceilings and large window frontage. The unit includes 3 secure parking stalls. The surrounding area includes art galleries, restaurants, cafes, and boutiques. It is located steps from the stadiums, parks, light rail, ferry terminal and new Seattle waterfront. The property size is 2925 square feet.
Key Highlights
- Prime Pioneer Square location: heart of the neighborhood, surrounded by amenities.
- Unique classic brick commercial condominium.
- Soaring ceilings and large window frontage.
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
$51,350
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
5.55%
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%
$1,027,000
$1.0M
Cap Rate 7%
$733,571
$733.6K
Cap Rate 9%
$570,556
$570.6K
Market Conditions
NOI Build-Up for 2,925 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
$88.8K $30.36/SF
− Vacancy
−$20.3K −$6.95/SF
EGI
$68.5K $23.41/SF
− OpEx
−$17.1K −$5.85/SF
NOI
$51.4K $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%
$1,027,000
Cap Rate 7%
$733,571
Cap Rate 9%
$570,556
Alternative Uses
Best Use
Office B
$733.6K
$641.9K – $855.8K
NOI $51,350 @ 7.0% cap · market cap 5.55%
Second Best
Retail
$623.1K
$545.2K – $726.9K
NOI $43,614 @ 7.0% cap · market cap 4.72%
Theoretical Best
Office A
$880.0K
$770.0K – $1.03M
NOI $61,600 @ 7.0% cap · market cap 6.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
9,671
Businesses Nearby
Explore this area
Business Placement
Demographics for 98104, WA
16,157
Population
10,803
Households
1.5
Avg Household Size
38
Median Age
45%
College-Educated
83%
High-School Grad
0.9 sq mi
ZIP Area
17,952
Density / Sq Mi
$61,866
Median Household Income
$57,791
Median Earnings
$1,511
Median Rent
$663,000
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 units - Classic brick condo in vibrant Pioneer Square neighborhood.
Where is this office units located?
The property is located at 512 1st Ave S Seattle, WA.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: Prime Pioneer Square location: heart of the neighborhood, surrounded by amenities.; Unique classic brick commercial condominium.; Soaring ceilings and large window frontage.
