Former Honeywell Manufacturing
For Sale
Contact for pricing
1500 W 1st St, Cheney, WA 99004
112,500 SF manufacturing facility on 10.08 acres.
Property Size112,501 SF
Lot Size10.08 Acres
Price / SF$66.67
Days on Market906
Property Features for 1500 W 1st St
General Information
Standard status
Active
Size
112,501 SF
Lot size
10.08 Acres
Property subtype
Industrial
Zoning
LI
Building Details
Buildings
1
Listing Agency:
Kiemle Hagood
(509) 838-6541
Listed By:
CRAIG SOEHREN · License #22137
Source:
Crexi
Added: Mar 8, 2024
Changed: Aug 20
Last Checked: Aug 30 at 7:02PM
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.
The Former Honeywell Building, a manufacturing facility with ±112,500 square feet, is located in Cheney, WA. Constructed in 1982, it was originally built as a microchip manufacturing plant for Honeywell. The building includes heavy power, concrete walls, and concrete roof trusses, and is situated on a 10.08-acre site. The current lease, held by Allpack, is structured as an “absolute net” lease, making the tenant responsible for all repairs and operating costs. The interior of the building is in good condition. Recent exterior improvements include a new roof completed in 2017 and new interior paint completed in 2019.
Key Highlights
- ±112,500 square foot manufacturing facility.
- Absolute net lease in place with Allpack, tenant responsible for all repairs and operating costs.
- Heavy power infrastructure suitable for manufacturing.
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
$648,512
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
8.65%
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%
$12,970,240
$13.0M
Cap Rate 7%
$9,264,457
$9.3M
Cap Rate 9%
$7,205,689
$7.2M
Market Conditions
NOI Build-Up for 112,501 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
$1.01M $9.00/SF
− Vacancy
−$86.1K −$0.77/SF
EGI
$926.4K $8.24/SF
− OpEx
−$277.9K −$2.47/SF
NOI
$648.5K $5.76/SF
Area
Spokane County, WA
Vacancy
8.50%
Lease Rate
$9.00 /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%
$12,970,240
Cap Rate 7%
$9,264,457
Cap Rate 9%
$7,205,689
Alternative Uses
Best Use
Industrial
$9.26M
$8.11M – $10.81M
NOI $648,512 @ 7.0% cap · market cap 8.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$26.00M
$22.75M – $30.33M
NOI $1,819,708 @ 7.0% cap · market cap 24.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
42
Businesses Nearby
Explore this area
Business Placement
Demographics for 99004, WA
23,064
Population
8,992
Households
2.6
Avg Household Size
29
Median Age
36%
College-Educated
93%
High-School Grad
334.3 sq mi
ZIP Area
69
Density / Sq Mi
$62,014
Median Household Income
$29,835
Median Earnings
$1,081
Median Rent
$368,500
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?
Manufacturing property - 112,500 SF manufacturing facility on 10.08 acres.
Where is this manufacturing property located?
The property is located at 1500 W 1st St Cheney, WA.
What is the asking price?
The asking price for this property is $7,500,000.
What are key features of this property?
This property features: ±112,500 square foot manufacturing facility.; Absolute net lease in place with Allpack, tenant responsible for all repairs and operating costs.; Heavy power infrastructure suitable for manufacturing.
