South Seattle Retail Investment
For Sale
$2,200,000
4850 37th Ave S, Seattle, WA 98118
Multi-tenant retail strip center in Columbia City neighborhood.
Property Size5,326 SF
Price / SF$413.07
Days on Market587
Property Features for 4850 37th Ave S
General Information
Standard status
Active
Size
5,326 SF
Building Details
Year Built
1959
Listing Agency:
JOHN L. SCOTT - KENT
Listed By:
ANTONIO LOPEZ
Source:
Corcoran
Added: Feb 3, 2025
Changed: Mar 16
Last Checked: Sep 13 at 7:59AM
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 JOHN L. SCOTT - KENT
Investment Insights
Based on property information with market context.
Located in the Columbia City neighborhood of South Seattle, the property at 4850 37th Ave S is a retail investment opportunity. The multi-tenant retail strip center provides 5,362 square feet of rentable space, including 4,280 square feet of retail space and 1,082 square feet of office space. The property benefits from high visibility and proximity to Rainier Ave S, with pedestrian traffic and accessibility to public transit and major roadways. Built in 1959 and renovated in 1975, the building is of masonry construction and sits on a 6,600 square foot lot. The zoning is NC3-40 (Neighborhood Commercial), which allows for mixed-use development.
Key Highlights
- Prime retail location in the vibrant Columbia City neighborhood of South Seattle.
- High visibility and strong pedestrian traffic due to proximity to Rainier Ave S.
- Multi‑tenant retail strip center with 5,362 SF of rentable space.
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
$121,509
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
5.52%
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%
$2,430,180
$2.4M
Cap Rate 7%
$1,735,843
$1.7M
Cap Rate 9%
$1,350,100
$1.4M
Market Conditions
NOI Build-Up for 5,326 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
$179.0K $33.60/SF
− Vacancy
−$5.4K −$1.01/SF
EGI
$173.6K $32.59/SF
− OpEx
−$52.1K −$9.78/SF
NOI
$121.5K $22.81/SF
Area
ZIP 98118
Vacancy
3.00%
Lease Rate
$33.60 /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%
$2,430,180
Cap Rate 7%
$1,735,843
Cap Rate 9%
$1,350,100
Alternative Uses
Best Use
Retail
$1.74M
$1.52M – $2.03M
NOI $121,509 @ 7.0% cap · market cap 5.52%
Second Best
Office B
$1.38M
$1.21M – $1.61M
NOI $96,587 @ 7.0% cap · market cap 4.39%
Theoretical Best
Specialty Retail
$1.92M
$1.68M – $2.24M
NOI $134,143 @ 7.0% cap · market cap 6.10%
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
1,245
Businesses Nearby
Explore this area
Business Placement
Demographics for 98118, WA
47,504
Population
19,831
Households
2.4
Avg Household Size
38
Median Age
49%
College-Educated
90%
High-School Grad
6.2 sq mi
ZIP Area
7,662
Density / Sq Mi
$109,085
Median Household Income
$54,827
Median Earnings
$1,831
Median Rent
$746,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Seattle, WA
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Frequently Asked Questions
What type of property is this?
Strip mall - Multi-tenant retail strip center in Columbia City neighborhood.
Where is this strip mall located?
The property is located at 4850 37th Ave S Seattle, WA.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Prime retail location in the vibrant Columbia City neighborhood of South Seattle.; High visibility and strong pedestrian traffic due to proximity to Rainier Ave S.; Multi‑tenant retail strip center with 5,362 SF of rentable space.
