Medical Office Building Near
For Sale
$2,000,000
3610 Ensign Rd NE, Olympia, WA 98506
6,222 SF medical office building across from Providence St. Peter Hospital.
Property Size6,222 SF
Price / SF$321.44
Days on Market523
Property Features for 3610 Ensign Rd NE
General Information
Standard status
Active
Size
6,222 SF
Building Details
Year Built
1978
Listing Agency:
THE RANTS GROUP
(360) 763-4993
Listed By:
PATRICK RANTS, CCIM, CPM
Source:
Corcoran
Added: Mar 28, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:35AM
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 THE RANTS GROUP
Investment Insights
Based on property information with market context.
This 6,222 SF medical office building, previously operated as a surgical center, is situated on a 0.53-acre lot. The property is located across from Providence St. Peter Hospital, a 390-bed non-profit teaching hospital. The building's layout includes nine exam rooms, procedure rooms, multiple reception and administrative areas, and four restrooms. It also features eight private offices, a large kitchen/breakroom, and ample storage space. The property provides 30 off-street parking stalls and a covered patient pickup area. A new roof is scheduled for completion in June 2025.
Key Highlights
- Located across from Providence St. Peter Hospital (390‑bed non‑profit teaching hospital)
- 6,222 SF medical office building, formerly a surgical center
- Nine exam rooms and procedure rooms
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
$81,040
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
4.05%
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%
$1,620,800
$1.6M
Cap Rate 7%
$1,157,714
$1.2M
Cap Rate 9%
$900,444
$900.4K
Market Conditions
NOI Build-Up for 6,222 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
$134.4K $21.60/SF
− Vacancy
−$26.3K −$4.23/SF
EGI
$108.1K $17.37/SF
− OpEx
−$27.0K −$4.34/SF
NOI
$81.0K $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%
$1,620,800
Cap Rate 7%
$1,157,714
Cap Rate 9%
$900,444
Alternative Uses
Best Use
Office B
$1.16M
$1.01M – $1.35M
NOI $81,040 @ 7.0% cap · market cap 4.05%
Second Best
Healthcare Medical
$715.9K
$626.4K – $835.2K
NOI $50,113 @ 7.0% cap · market cap 2.51%
Theoretical Best
Office A
$1.82M
$1.59M – $2.13M
NOI $127,526 @ 7.0% cap · market cap 6.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,105
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 98506, WA
19,198
Population
9,041
Households
2.1
Avg Household Size
44
Median Age
51%
College-Educated
96%
High-School Grad
22.4 sq mi
ZIP Area
857
Density / Sq Mi
$93,968
Median Household Income
$50,388
Median Earnings
$1,431
Median Rent
$469,700
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?
Medical Office Space - 6,222 SF medical office building across from Providence St. Peter Hospital.
Where is this medical office space located?
The property is located at 3610 Ensign Rd NE Olympia, WA.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Located across from Providence St. Peter Hospital (390‑bed non‑profit teaching hospital); 6,222 SF medical office building, formerly a surgical center; Nine exam rooms and procedure rooms
