Industrial Flex Condo with Loading
For Sale
$650,000
1721 W Valley Hwy Unit 5, Auburn, WA 98001
M-1-zoned commercial condo combines warehouse, manufacturing, storage, and office areas within a managed industrial complex.
Property Size2,160 SF
Price / SF$300.93
Days on Market14
Property Features for 1721 W Valley Hwy Unit 5
General Information
Standard status
Active
Size
2,160 SF
Zoning
M-1
Warehouse & Industrial
Clear Height
16 ft
Warehouse Space
1,300 SF
Office Build-Out
860 SF
Drive-In Doors
1
Additional Details
Highway Access
Yes
Building Details
Year Built
1986
Listing Agency:
Heaton Dainard, LLC
(425) 881-5131
Listed By:
Dan M Drew
Source:
Hanshagmeier
Added: Aug 17
Changed: Aug 28
Last Checked: Aug 29 at 12:29PM
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 Heaton Dainard, LLC
Investment Insights
Based on property information with market context.
This industrial flex condominium at 1721 W Valley Hwy Unit 5 provides approximately 2,160 SF of usable space, including about 1,300 SF allocated to warehouse, manufacturing, and storage functions and 860 SF of office area. The unit was built in 1986 and includes a 12-foot grade-level loading door, 16-foot clear ceilings, and an open interior layout that can support the property’s stated industrial, contractor, service, showroom, manufacturing, warehouse, and flex-office applications.
The property is within a professionally managed industrial complex and carries M-1 zoning. Its Auburn location provides access to Hwy 167, SR-18, and I-5, with connectivity to the Kent Valley and the broader Seattle-Tacoma distribution network. The combination of dedicated operational space, administrative area, loading access, and regional highway connections creates a practical format for a range of commercial operations.
The property is within a professionally managed industrial complex and carries M-1 zoning. Its Auburn location provides access to Hwy 167, SR-18, and I-5, with connectivity to the Kent Valley and the broader Seattle-Tacoma distribution network. The combination of dedicated operational space, administrative area, loading access, and regional highway connections creates a practical format for a range of commercial operations.
Key Highlights
- Approximately 2,160 SF industrial/flex condominium
- Approximately 1,300 SF of warehouse/manufacturing/storage space and 860 SF of office area
- 12‑foot grade‑level loading door
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
$31,010
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
4.77%
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%
$620,200
$620.2K
Cap Rate 7%
$443,000
$443.0K
Cap Rate 9%
$344,556
$344.6K
Market Conditions
NOI Build-Up for 2,160 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
$59.5K $27.54/SF
− Vacancy
−$11.8K −$5.45/SF
EGI
$47.7K $22.09/SF
− OpEx
−$16.7K −$7.73/SF
NOI
$31.0K $14.36/SF
Area
King County, WA
Vacancy
19.80%
Lease Rate
$27.54 /SF/Yr
Expense Ratio
35.00%
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%
$620,200
Cap Rate 7%
$443,000
Cap Rate 9%
$344,556
Alternative Uses
Best Use
Flex RnD
$443.0K
$387.6K – $516.8K
NOI $31,010 @ 7.0% cap · market cap 4.77%
Second Best
Warehouse
$376.8K
$329.7K – $439.7K
NOI $26,379 @ 7.0% cap · market cap 4.06%
Theoretical Best
Office A
$865.1K
$757.0K – $1.01M
NOI $60,559 @ 7.0% cap · market cap 9.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
16 ft
Clear height
1
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
329
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 98001, WA
36,073
Population
12,369
Households
2.9
Avg Household Size
39
Median Age
28%
College-Educated
87%
High-School Grad
18.6 sq mi
ZIP Area
1,939
Density / Sq Mi
$107,218
Median Household Income
$54,332
Median Earnings
$1,927
Median Rent
$538,800
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - M-1-zoned commercial condo combines warehouse, manufacturing, storage, and office areas within a managed industrial complex.
Where is this flex space located?
The property is located at 1721 W Valley Hwy Unit 5 Auburn, WA.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Approximately 2,160 SF industrial/flex condominium; Approximately 1,300 SF of warehouse/manufacturing/storage space and 860 SF of office area; 12‑foot grade‑level loading door
