Downtown Olympia Office
For Sale
$1,750,000
510 Plum St SE, Olympia, WA 98501
Two-story office building in downtown Olympia with on-site parking.
Property Size10,630 SF
Price / SF$164.63
Days on Market337
Property Features for 510 Plum St SE
General Information
Standard status
Active
Size
10,630 SF
Total Parking Spaces
32
Property subtype
Office
Zoning
DB
Building Details
Building Size
10,630 SF
Year Built
1989
Stories
2
Listing Agency:
Coldwell Banker Commercial Danforth
(253) 273-6474
Listed By:
Dominic Temmel · License #8077
(253) 273-6474
Source:
Cbcworldwide
Added: Sep 10, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:40AM
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 Coldwell Banker Commercial Danforth
Investment Insights
Based on property information with market context.
This two-story office building, located in downtown Olympia, offers 10,630 square feet of space. Situated on a 0.49-acre lot, the property is fully fenced and includes 32 on-site parking spaces. The building is suitable for professional or medical office use. Its location provides direct access to Interstate 5, offering convenience and exposure in a central urban setting.
Key Highlights
- Prime Downtown Olympia location with high visibility and accessibility
- 10,630 SF two‑story office building suitable for professional or medical use
- 32 on‑site parking spaces on a fully fenced 0.49‑acre lot
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
$138,454
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
7.91%
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%
$2,769,080
$2.8M
Cap Rate 7%
$1,977,914
$2.0M
Cap Rate 9%
$1,538,378
$1.5M
Market Conditions
NOI Build-Up for 10,630 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
$229.6K $21.60/SF
− Vacancy
−$45.0K −$4.23/SF
EGI
$184.6K $17.37/SF
− OpEx
−$46.2K −$4.34/SF
NOI
$138.5K $13.02/SF
Area
Thurston County, WA
Vacancy
19.60%
Lease Rate
$21.60 /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%
$2,769,080
Cap Rate 7%
$1,977,914
Cap Rate 9%
$1,538,378
Alternative Uses
Best Use
Office B
$1.98M
$1.73M – $2.31M
NOI $138,454 @ 7.0% cap · market cap 7.91%
Second Best
Healthcare Medical
$1.22M
$1.07M – $1.43M
NOI $85,616 @ 7.0% cap · market cap 4.89%
Theoretical Best
Office A
$3.11M
$2.72M – $3.63M
NOI $217,872 @ 7.0% cap · market cap 12.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,726
Businesses Nearby
Explore this area
Business Placement
Demographics for 98501, WA
45,274
Population
19,969
Households
2.3
Avg Household Size
40
Median Age
48%
College-Educated
97%
High-School Grad
34.9 sq mi
ZIP Area
1,297
Density / Sq Mi
$95,695
Median Household Income
$55,909
Median Earnings
$1,600
Median Rent
$485,200
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 building - Two-story office building in downtown Olympia with on-site parking.
Where is this office building located?
The property is located at 510 Plum St SE Olympia, WA.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Prime Downtown Olympia location with high visibility and accessibility; 10,630 SF two‑story office building suitable for professional or medical use; 32 on‑site parking spaces on a fully fenced 0.49‑acre lot
