Tacoma Super Block Development
For Sale
$11,412,000
1301 Pacific Avenue, Tacoma, WA 98402
Premier development site in Tacoma's Financial District.
Property Size69,165 SF
Price / SF$164
Days on Market346
Property Features for 1301 Pacific Avenue
General Information
Standard status
Active
Size
69,165 SF
Property subtype
Land
Listing Agency:
Lee & Associates Commercial Real Estate Services
(253) 238-0043
Listed By:
John Bauder, CCIM
Source:
Lee-associates
Added: Sep 10, 2025
Changed: Aug 19
Last Checked: Aug 21 at 5:45AM
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 Lee & Associates Commercial Real Estate Services
Investment Insights
Based on property information with market context.
This offering presents the opportunity to acquire the Super Block, a development site located in the heart of Tacoma’s Financial District, adjacent to freeway on and off ramps. The Downtown Commercial Core zoning allows for a height limit of 400 feet. Initial studies suggest the potential to construct nearly 480,000 square feet of office, retail, hospitality, and/or multifamily space. The Super Block encompasses approximately 69,165 square feet of land, with additional underground parking. A developer has the potential to control two full city blocks in Downtown Tacoma and may have the ability to vacate the alley between the two blocks, providing approximately 12,000 square feet of additional land, totaling almost 2 contiguous acres. Pre-development work has been completed, including construction drawings for an approximately 250,000 square foot office building, and massing studies depicting up to a 665,000 square foot office building with underground parking and retail. The site currently has approximately 304 parking stalls, including secure underground parking. The site also falls within a Qualified Opportunity Zone. Interim parking income and extensive pre-development / due diligence work provides a developer a clear path forward.
Key Highlights
- Premier development site in the heart of Tacoma's Financial District.
- Downtown Commercial Core zoning with a height limit of 400', allowing for nearly 480,000 square feet of development.
- Benefit from ±69,165 SF of land (almost 2 contiguous acres with alley vacation) and additional underground parking, allowing control of two full city blocks.
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
$832,262
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
7.29%
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%
$16,645,240
$16.6M
Cap Rate 7%
$11,889,457
$11.9M
Cap Rate 9%
$9,247,356
$9.2M
Market Conditions
NOI Build-Up for 69,165 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
$1.24M $18.00/SF
− Vacancy
−$56.0K −$0.81/SF
EGI
$1.19M $17.19/SF
− OpEx
−$356.7K −$5.16/SF
NOI
$832.3K $12.03/SF
Area
Tacoma, WA
Vacancy
4.50%
Lease Rate
$18.00 /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%
$16,645,240
Cap Rate 7%
$11,889,457
Cap Rate 9%
$9,247,356
Alternative Uses
Best Use
Retail
$11.89M
$10.40M – $13.87M
NOI $832,262 @ 7.0% cap · market cap 7.29%
Second Best
Industrial
$10.58M
$9.26M – $12.34M
NOI $740,542 @ 7.0% cap · market cap 6.49%
Theoretical Best
Office A
$21.26M
$18.60M – $24.80M
NOI $1,488,154 @ 7.0% cap · market cap 13.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,119
Businesses Nearby
49k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 60%
Hotels & Casinos 35%
Shops & Services 5%
McDonald's
Dining
28,302 visits/mo
0.4 miles
Marriott Tacoma Downtown
Hotels & Casinos
11,090 visits/mo
0.4 miles
Courtyard Tacoma Downtown
Hotels & Casinos
6,246 visits/mo
0.3 miles
Domino's Pizza
Dining
1,484 visits/mo
0.2 miles
Enterprise Rent-A-Car
Shops & Services
1,235 visits/mo
0.2 miles
Demographics for 98402, WA
8,053
Population
4,788
Households
1.7
Avg Household Size
37
Median Age
44%
College-Educated
91%
High-School Grad
1.2 sq mi
ZIP Area
6,711
Density / Sq Mi
$54,712
Median Household Income
$43,145
Median Earnings
$1,478
Median Rent
$558,100
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - Premier development site in Tacoma's Financial District.
Where is this commercial land located?
The property is located at 1301 Pacific Avenue Tacoma, WA.
What is the asking price?
The asking price for this property is $11,412,000.
What are key features of this property?
This property features: Premier development site in the heart of Tacoma's Financial District.; Downtown Commercial Core zoning with a height limit of 400', allowing for nearly 480,000 square feet of development.; Benefit from ±69,165 SF of land (almost 2 contiguous acres with alley vacation) and additional underground parking, allowing control of two full city blocks.
