Downtown-Adjacent Retail
For Sale
Contact for pricing
225 E 3rd Ave, Spokane, WA 99202
Professionally managed commercial property with available space and GC zoning near downtown Spokane.
Property Size6,941 SF
Lot Size0.33 Acres
Price / SF$165.68
Days on Market485
Property Features for 225 E 3rd Ave
General Information
Standard status
Active
Size
6,941 SF
Lot size
0.33 Acres
Property subtype
RETAIL
Zoning
GC
Financials
Asking Price
$1,150,000
Gross Income
$76,800
Building Details
Year Built
1978
Building Size
6,941 SF
Listing Agency:
Kiemle Hagood
(509) 998-8162
Listed By:
Brandon Peterson
Source:
Moodyscre
Added: Apr 10, 2025
Changed: Jul 31
Last Checked: Aug 6 at 4:51AM
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 Kiemle Hagood
Investment Insights
Based on property information with market context.
This professionally managed retail building contains 6,941 SF on a 14,200-square-foot parcel and was built in 1978. The property includes 2,300 SF currently available for lease or occupancy; the most recent tenant used the space for medical office purposes. GC zoning supports the property’s commercial positioning, while the existing configuration may accommodate an owner-user or investor seeking a mixed-occupancy building.
Located at 225 E 3rd Ave near downtown Spokane, the property offers a storefront-oriented commercial setting with available space for a new occupant. The building’s retail classification and prior medical office use provide a practical basis for evaluating future occupancy within the existing improvements.
Located at 225 E 3rd Ave near downtown Spokane, the property offers a storefront-oriented commercial setting with available space for a new occupant. The building’s retail classification and prior medical office use provide a practical basis for evaluating future occupancy within the existing improvements.
Key Highlights
- 6,941 SF retail building on a 14,200‑square‑foot parcel
- 2,300 SF currently available for lease or occupancy
- Most recent tenant use was medical office
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
$99,388
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
8.64%
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%
$1,987,760
$2.0M
Cap Rate 7%
$1,419,829
$1.4M
Cap Rate 9%
$1,104,311
$1.1M
Market Conditions
NOI Build-Up for 6,941 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
$154.1K $22.20/SF
− Vacancy
−$21.6K −$3.11/SF
EGI
$132.5K $19.09/SF
− OpEx
−$33.1K −$4.77/SF
NOI
$99.4K $14.32/SF
Area
Spokane, WA
Vacancy
14.00%
Lease Rate
$22.20 /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%
$1,987,760
Cap Rate 7%
$1,419,829
Cap Rate 9%
$1,104,311
Alternative Uses
Best Use
Office B
$1.42M
$1.24M – $1.66M
NOI $99,388 @ 7.0% cap · market cap 8.64%
Second Best
Healthcare Medical
$1.28M
$1.12M – $1.49M
NOI $89,656 @ 7.0% cap · market cap 7.80%
Theoretical Best
Office A
$1.79M
$1.57M – $2.09M
NOI $125,354 @ 7.0% cap · market cap 10.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
591
Businesses Nearby
Under-served
Demand for This Use
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 Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Storefront property - Professionally managed commercial property with available space and GC zoning near downtown Spokane.
Where is this storefront property located?
The property is located at 225 E 3rd Ave Spokane, WA.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: 6,941 SF retail building on a 14,200‑square‑foot parcel; 2,300 SF currently available for lease or occupancy; Most recent tenant use was medical office
