Office-Retail Building with Commercial
For Sale
Contact for pricing
1321 Martin Luther King Jr Way, Tacoma, WA 98405
Two-story plus lower level office/retail building with built-out commercial-grade kitchen, classrooms, boardrooms, and banquet space.
Property Size26,100 SF
Price / SF$172.41
Days on Market191
Property Features for 1321 Martin Luther King Jr Way
General Information
Standard status
Active
Size
26,100 SF
Property subtype
OFFICE
Amenities
commercial-grade kitchen
classrooms
boardrooms
flexible banquet space
Listing Agency:
Lee & Associates Commercial Real Estate Services
(253) 303-1983
Listed By:
Alex Muir
(253) 303-1983
Source:
Moodyscre
Added: Feb 2
Changed: Aug 8
Last Checked: Aug 11 at 1:29PM
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.
1321 Martin Luther King Jr Way is a 2-story office/retail building with a lower level, totaling 26,100 square feet. The space includes a fully built-out commercial-grade kitchen, numerous classrooms and boardrooms, and flexible banquet space, supporting a variety of in-building uses for an owner-user or investor.
The property is located in Hilltop, Tacoma, just two blocks from the Hilltop light rail station. The surrounding area has seen rapid change, with 1,860 units delivered within a 0.5-mile radius.
The combination of classroom-style rooms, meeting/boardroom space, and banquet-ready areas makes the building particularly suited for tenants seeking multiple interior environments within one property.
The property is located in Hilltop, Tacoma, just two blocks from the Hilltop light rail station. The surrounding area has seen rapid change, with 1,860 units delivered within a 0.5-mile radius.
The combination of classroom-style rooms, meeting/boardroom space, and banquet-ready areas makes the building particularly suited for tenants seeking multiple interior environments within one property.
Key Highlights
- 26,100 SF, 2‑story office/retail building with a lower level in Hilltop, Tacoma
- Fully built‑out commercial‑grade kitchen
- Multiple classrooms and boardrooms for flexible indoor use
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
$314,061
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
6.98%
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%
$6,281,220
$6.3M
Cap Rate 7%
$4,486,586
$4.5M
Cap Rate 9%
$3,489,567
$3.5M
Market Conditions
NOI Build-Up for 26,100 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
$469.8K $18.00/SF
− Vacancy
−$21.1K −$0.81/SF
EGI
$448.7K $17.19/SF
− OpEx
−$134.6K −$5.16/SF
NOI
$314.1K $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%
$6,281,220
Cap Rate 7%
$4,486,586
Cap Rate 9%
$3,489,567
Alternative Uses
Best Use
Office B
$6.04M
$5.29M – $7.05M
NOI $422,820 @ 7.0% cap · market cap 9.40%
Second Best
Retail
$4.49M
$3.93M – $5.23M
NOI $314,061 @ 7.0% cap · market cap 6.98%
Theoretical Best
Office A
$8.02M
$7.02M – $9.36M
NOI $561,568 @ 7.0% cap · market cap 12.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,943
Businesses Nearby
Explore this area
Business Placement
Demographics for 98405, WA
24,617
Population
11,645
Households
2.1
Avg Household Size
37
Median Age
31%
College-Educated
94%
High-School Grad
4.1 sq mi
ZIP Area
6,004
Density / Sq Mi
$80,024
Median Household Income
$51,028
Median Earnings
$1,480
Median Rent
$443,800
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?
Office building - Two-story plus lower level office/retail building with built-out commercial-grade kitchen, classrooms, boardrooms, and banquet space.
Where is this office building located?
The property is located at 1321 Martin Luther King Jr Way Tacoma, WA.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: 26,100 SF, 2‑story office/retail building with a lower level in Hilltop, Tacoma; Fully built‑out commercial‑grade kitchen; Multiple classrooms and boardrooms for flexible indoor use
