Two-Story Medical Office
For Sale
Contact for pricing
1220 116th Ave NE, Bellevue, WA 98004
Established medical office property with parking garage and flexible owner-user occupancy options.
Property Size15,480 SF
Price / SF$503.88
Days on Market28
Property Features for 1220 116th Ave NE
General Information
Standard status
Active
Size
15,480 SF
Property subtype
OFFICE
Zoning
MU H
Building Details
Buildings
1
Stories
2
Listing Agency:
Wallace Properties, Inc.
(206) 229-7523
Listed By:
Ann Bishop
Source:
Moodyscre
Added: Jul 15
Changed: Aug 10
Last Checked: Aug 10 at 5:00AM
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 Wallace Properties, Inc.
Investment Insights
Based on property information with market context.
This two-story medical office property includes a parking garage and supports immediate occupancy of 2,313 RSF, with additional space available as it comes open. The building is positioned for an owner-user seeking an established medical office setting with room to expand within the property.
Located at 1220 116th Ave. NE in Bellevue, the property sits across from the Overlake Medical Center campus. MU H zoning provides high-rise and transit-oriented future development potential, along with mixed-use flexibility and generous height allowances. The site is also near emerging light rail hubs as Bellevue continues expanding beyond its traditional downtown core.
Located at 1220 116th Ave. NE in Bellevue, the property sits across from the Overlake Medical Center campus. MU H zoning provides high-rise and transit-oriented future development potential, along with mixed-use flexibility and generous height allowances. The site is also near emerging light rail hubs as Bellevue continues expanding beyond its traditional downtown core.
Key Highlights
- 2,313 RSF available for immediate owner‑user occupancy
- Two‑story medical office building with parking garage
- Across from the Overlake Medical Center campus
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
$337,712
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
4.33%
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%
$6,754,240
$6.8M
Cap Rate 7%
$4,824,457
$4.8M
Cap Rate 9%
$3,752,356
$3.8M
Market Conditions
NOI Build-Up for 15,480 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
$557.3K $36.00/SF
− Vacancy
−$107.0K −$6.91/SF
EGI
$450.3K $29.09/SF
− OpEx
−$112.6K −$7.27/SF
NOI
$337.7K $21.82/SF
Area
Bellevue, WA
Vacancy
19.20%
Lease Rate
$36.00 /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%
$6,754,240
Cap Rate 7%
$4,824,457
Cap Rate 9%
$3,752,356
Alternative Uses
Best Use
Office B
$4.82M
$4.22M – $5.63M
NOI $337,712 @ 7.0% cap · market cap 4.33%
Second Best
Mixed Use
$4.24M
$3.71M – $4.95M
NOI $296,926 @ 7.0% cap · market cap 3.81%
Theoretical Best
Office A
$7.17M
$6.27M – $8.36M
NOI $501,552 @ 7.0% cap · market cap 6.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,924
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 98004, WA
39,136
Population
20,977
Households
1.9
Avg Household Size
37
Median Age
76%
College-Educated
97%
High-School Grad
7.3 sq mi
ZIP Area
5,361
Density / Sq Mi
$176,367
Median Household Income
$120,667
Median Earnings
$2,706
Median Rent
$2,000,001
Median Home Value
Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Established medical office property with parking garage and flexible owner-user occupancy options.
Where is this medical office space located?
The property is located at 1220 116th Ave NE Bellevue, WA.
What is the asking price?
The asking price for this property is $7,800,000.
What are key features of this property?
This property features: 2,313 RSF available for immediate owner‑user occupancy; Two‑story medical office building with parking garage; Across from the Overlake Medical Center campus
