Four-Suite Office
For Sale
$1,350,000
Pending
1326 Tacoma Ave S, Tacoma, WA 98402
CR-zoned office property with divisible suites, private entrances, restrooms, and secure on-site parking.
Property Size3,500 SF
Days on Market43
Property Features for 1326 Tacoma Ave S
General Information
Standard status
Pending
Size
3,500 SF
Total Parking Spaces
10
Property subtype
Commercial
Zoning
CR
Additional Details
Office Units
4
Building Details
Year Built
1965
Buildings
1
Building Size
3,500 SF
Tenancy
Multi
Listing Agency:
MADISON BAY COMMERCIAL
(206) 330-1794
Listed By:
HUGH WINSKILL
Source:
Corcoran
Added: Jul 20
Changed: Aug 30
Last Checked: Aug 30 at 5:41PM
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 MADISON BAY COMMERCIAL
Investment Insights
Based on property information with market context.
This 3,500-square-foot office building is arranged as four separate suites, giving occupants distinct exterior access and dedicated restrooms. The suites can also be joined to accommodate a full-floor or full-building user. Secure on-site parking supports 10 vehicles, while existing tenants provide in-place income for an owner-user or investor.
Key Highlights
- 3,500‑square‑foot office building with four suites
- Each suite has an exterior entrance and restroom
- Suites can be combined for full‑floor or full‑building occupancy
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
$56,700
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
4.20%
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%
$1,134,000
$1.1M
Cap Rate 7%
$810,000
$810.0K
Cap Rate 9%
$630,000
$630.0K
Market Conditions
NOI Build-Up for 3,500 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
$94.5K $27.00/SF
− Vacancy
−$18.9K −$5.40/SF
EGI
$75.6K $21.60/SF
− OpEx
−$18.9K −$5.40/SF
NOI
$56.7K $16.20/SF
Area
Tacoma, WA
Vacancy
20.00%
Lease Rate
$27.00 /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%
$1,134,000
Cap Rate 7%
$810,000
Cap Rate 9%
$630,000
Alternative Uses
Best Use
Office B
$810.0K
$708.8K – $945.0K
NOI $56,700 @ 7.0% cap · market cap 4.20%
Second Best
Retail
$601.7K
$526.5K – $701.9K
NOI $42,116 @ 7.0% cap · market cap 3.12%
Theoretical Best
Office A
$1.08M
$941.3K – $1.26M
NOI $75,306 @ 7.0% cap · market cap 5.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
6,319
Businesses Nearby
Explore this area
Business Placement
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - CR-zoned office property with divisible suites, private entrances, restrooms, and secure on-site parking.
Where is this office units located?
The property is located at 1326 Tacoma Ave S Tacoma, WA.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 3,500‑square‑foot office building with four suites; Each suite has an exterior entrance and restroom; Suites can be combined for full‑floor or full‑building occupancy
