High-Traffic Commercial Property For
For Sale
$950,000
2206 96th St S, Tacoma, WA 98444
Corner lot with income potential in a high-traffic location.
Property Size2,160 SF
Price / SF$439.81
Days on Market678
Property Features for 2206 96th St S
General Information
Standard status
Active
Size
2,160 SF
Building Details
Year Built
1986
Listing Agency:
TS PROPERTY MANAGEMENT, INC.
Listed By:
BRIAN SEUNG SHIN
(253) 249-8011
Source:
Corcoran
Added: Nov 4, 2024
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 TS PROPERTY MANAGEMENT, INC.
Investment Insights
Based on property information with market context.
This commercial property, formerly a car wash, is situated on a corner lot with high visibility and accessibility. The 2,160-square-foot property is located in a high-traffic area and features two billboard signs that generate income. The existing layout is suitable for a car wash or redevelopment for other commercial uses. The property is located in a bustling area and offers flexible potential for various business opportunities. Buyers should verify feasibility for their intended use.
Key Highlights
- Prime commercial property in a bustling area.
- High‑traffic corner lot location with excellent visibility and easy access.
- Added income potential from two large billboard signs.
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
$31,166
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
3.28%
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%
$623,320
$623.3K
Cap Rate 7%
$445,229
$445.2K
Cap Rate 9%
$346,289
$346.3K
Market Conditions
NOI Build-Up for 2,160 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
$43.3K $20.04/SF
− Vacancy
−$1.7K −$0.80/SF
EGI
$41.6K $19.24/SF
− OpEx
−$10.4K −$4.81/SF
NOI
$31.2K $14.43/SF
Area
Tacoma, WA
Vacancy
4.00%
Lease Rate
$20.04 /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%
$623,320
Cap Rate 7%
$445,229
Cap Rate 9%
$346,289
Alternative Uses
Best Use
Specialty Retail
$445.2K
$389.6K – $519.4K
NOI $31,166 @ 7.0% cap · market cap 3.28%
Second Best
Retail
$371.3K
$324.9K – $433.2K
NOI $25,991 @ 7.0% cap · market cap 2.74%
Theoretical Best
Office A
$663.9K
$580.9K – $774.6K
NOI $46,475 @ 7.0% cap · market cap 4.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
419
Businesses Nearby
8k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 86%
Hotels & Casinos 14%
7-Eleven
Shops & Services
7,251 visits/mo
0.1 miles
Quality Inn & Suites
Hotels & Casinos
691 visits/mo
0.4 miles
Howard Johnson Inn & Suites
Hotels & Casinos
532 visits/mo
0.4 miles
Demographics for 98444, WA
36,885
Population
13,762
Households
2.7
Avg Household Size
34
Median Age
15%
College-Educated
87%
High-School Grad
6.9 sq mi
ZIP Area
5,346
Density / Sq Mi
$64,464
Median Household Income
$39,829
Median Earnings
$1,581
Median Rent
$369,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Car wash - Corner lot with income potential in a high-traffic location.
Where is this car wash located?
The property is located at 2206 96th St S Tacoma, WA.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Prime commercial property in a bustling area.; High‑traffic corner lot location with excellent visibility and easy access.; Added income potential from two large billboard signs.
