Single-Tenant Auto
For Sale
Contact for pricing
1515 S 344th St, Federal Way, WA 98003
Corner-site automotive property with a triple-net lease and landlord responsibility limited to roof and structure.
Property Size10,240 SF
Lot Size0.68 Acres
Price / SF$239.26
Days on Market188
Property Features for 1515 S 344th St
General Information
Standard status
Active
Size
10,240 SF
Lot size
0.68 Acres
Property subtype
RETAIL
Financials
Asking Price
$2,450,000
Cap Rate
6.2%
Building Details
Tenancy
Single
Listing Agency:
NAI Puget Sound Properties
(425) 586-5608
Listed By:
Kyle Sterling · License #138068
(425) 586-5608
Source:
Moodyscre
Added: Feb 23
Changed: Aug 30
Last Checked: Aug 30 at 12:41PM
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 NAI Puget Sound Properties
Investment Insights
Based on property information with market context.
This 10,240-square-foot automotive service building is occupied by a single tenant under a triple-net lease. The landlord’s obligations are limited to the roof and structure, while the tenant pays property taxes, insurance, and other expenses directly. The property sits on a 29,471-square-foot lot and is positioned at the corner of S 344th Street across from a Walmart-anchored center.
The lease has three years remaining, followed by two five-year options at fair market value. The tenant is a regional operator with three locations and an approximately 40-year operating history. The property carries a 6.20% cap rate and is located at 1515 S 344th St in Federal Way, Washington.
The lease has three years remaining, followed by two five-year options at fair market value. The tenant is a regional operator with three locations and an approximately 40-year operating history. The property carries a 6.20% cap rate and is located at 1515 S 344th St in Federal Way, Washington.
Key Highlights
- 10,240 SF automotive service building
- 29,471 SF lot at a corner location
- Single‑tenant triple‑net lease structure
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
$183,180
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
7.48%
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%
$3,663,600
$3.7M
Cap Rate 7%
$2,616,857
$2.6M
Cap Rate 9%
$2,035,333
$2.0M
Market Conditions
NOI Build-Up for 10,240 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
$270.3K $26.40/SF
− Vacancy
−$8.7K −$0.84/SF
EGI
$261.7K $25.56/SF
− OpEx
−$78.5K −$7.67/SF
NOI
$183.2K $17.89/SF
Area
King County, WA
Vacancy
3.20%
Lease Rate
$26.40 /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%
$3,663,600
Cap Rate 7%
$2,616,857
Cap Rate 9%
$2,035,333
Alternative Uses
Best Use
Retail
$2.62M
$2.29M – $3.05M
NOI $183,180 @ 7.0% cap · market cap 7.48%
Second Best
Industrial
$1.47M
$1.29M – $1.72M
NOI $102,987 @ 7.0% cap · market cap 4.20%
Theoretical Best
Office A
$4.10M
$3.59M – $4.78M
NOI $287,097 @ 7.0% cap · market cap 11.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,820
Businesses Nearby
452k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 47%
Superstores 30%
Shops & Services 16%
Apparel 3%
Walmart
Superstores
137,461 visits/mo
0.2 miles
McDonald's
Dining
45,843 visits/mo
0.4 miles
Olive Garden
Dining
29,290 visits/mo
0.4 miles
Hobby Lobby
Shops & Services
29,053 visits/mo
0.4 miles
Wendy's
Dining
22,181 visits/mo
0.1 miles
Demographics for 98003, WA
51,751
Population
20,380
Households
2.5
Avg Household Size
37
Median Age
28%
College-Educated
88%
High-School Grad
11.5 sq mi
ZIP Area
4,500
Density / Sq Mi
$70,800
Median Household Income
$39,497
Median Earnings
$1,650
Median Rent
$428,500
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Auto shop - Corner-site automotive property with a triple-net lease and landlord responsibility limited to roof and structure.
Where is this auto shop located?
The property is located at 1515 S 344th St Federal Way, WA.
What is the asking price?
The asking price for this property is $2,450,000.
What are key features of this property?
This property features: 10,240 SF automotive service building; 29,471 SF lot at a corner location; Single‑tenant triple‑net lease structure
