Net-Leased Retail Property with Office
For Sale
Contact for pricing
1003 E 3rd Ave, Spokane, WA 99202
Single-tenant net-leased retail building is leased to Office Depot under a newly executed 10-year lease extension.
Property Size22,750 SF
Lot Size2.18 Acres
Price / SF$160.44
Days on Market583
Property Features for 1003 E 3rd Ave
General Information
Standard status
Active
Size
22,750 SF
Class
B
Lot size
2.18 Acres
Property subtype
Retail
Zoning
General Commercial with 150 Ft. Height Limit
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$250,250
Site & Location
Traffic Count
100,000 vehicles/day
Highway Access
Yes
Building Details
Year Built
1990
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Linc Properties
Listed By:
Brian Leibsohn · License #18848
(425) 455-3131
Source:
Crexi
Added: Feb 1, 2025
Changed: Aug 27
Last Checked: Sep 7 at 7:38AM
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 Linc Properties
Investment Insights
Based on property information with market context.
The property is a single-tenant, net-leased retail investment leased to Office Depot. The offering is secured by a newly executed, corporately guaranteed 10-year lease extension completed in March 2026, supporting long-term contractual cash flow under a triple-net (NNN) structure with minimal landlord obligations. Office Depot has operated continuously at this location since 1990, providing more than 34 years of established operating history.
The site is located in Spokane, Washington with direct access and visibility to Interstate 90, supported by strong ingress and egress and ample parking. The asset sits on a 2.18-acre site with an efficient building layout designed to support retail and service-based operations, as well as distribution and fulfillment-oriented components of the tenant’s evolving platform.
The property is governed by General Commercial zoning with density-driven flexibility and includes redevelopment optionality, including potential building height up to 150 feet.
The site is located in Spokane, Washington with direct access and visibility to Interstate 90, supported by strong ingress and egress and ample parking. The asset sits on a 2.18-acre site with an efficient building layout designed to support retail and service-based operations, as well as distribution and fulfillment-oriented components of the tenant’s evolving platform.
The property is governed by General Commercial zoning with density-driven flexibility and includes redevelopment optionality, including potential building height up to 150 feet.
Key Highlights
- Single‑tenant net‑leased retail building built in 1990, operating continuously as an Office Depot location since 1990
- Newly executed corporately guaranteed 10‑year lease extension completed March 2026 under a triple‑net (NNN) structure
- Lease extension includes contractual rental increases of 10% (primary) and 27% (option period)
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
$236,056
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
6.47%
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%
$4,721,120
$4.7M
Cap Rate 7%
$3,372,229
$3.4M
Cap Rate 9%
$2,622,844
$2.6M
Market Conditions
NOI Build-Up for 22,750 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
$368.6K $16.20/SF
− Vacancy
−$31.3K −$1.38/SF
EGI
$337.2K $14.82/SF
− OpEx
−$101.2K −$4.45/SF
NOI
$236.1K $10.38/SF
Area
Spokane, WA
Vacancy
8.50%
Lease Rate
$16.20 /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%
$4,721,120
Cap Rate 7%
$3,372,229
Cap Rate 9%
$2,622,844
Alternative Uses
Best Use
Retail
$3.37M
$2.95M – $3.93M
NOI $236,056 @ 7.0% cap · market cap 6.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.87M
$5.14M – $6.85M
NOI $410,865 @ 7.0% cap · market cap 11.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100,000 VPD
Traffic count
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,251
Businesses Nearby
Explore this area
Business Placement
Demographics for 99202, WA
21,969
Population
8,296
Households
2.6
Avg Household Size
31
Median Age
33%
College-Educated
92%
High-School Grad
5.9 sq mi
ZIP Area
3,724
Density / Sq Mi
$61,323
Median Household Income
$31,892
Median Earnings
$1,070
Median Rent
$268,700
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Single-tenant net-leased retail building is leased to Office Depot under a newly executed 10-year lease extension.
Where is this nnn property located?
The property is located at 1003 E 3rd Ave Spokane, WA.
What is the asking price?
The asking price for this property is $3,650,000.
What are key features of this property?
This property features: Single‑tenant net‑leased retail building built in 1990, operating continuously as an Office Depot location since 1990; Newly executed corporately guaranteed 10‑year lease extension completed March 2026 under a triple‑net (NNN) structure; Lease extension includes contractual rental increases of 10% (primary) and 27% (option period)
