Redmond Land with Development
For Sale
$4,198,000
16440 85th St, Redmond, WA 98052
21,750 SF property in Downtown Redmond with development potential.
Property Size21,750 SF
Price / SF$193.01
Days on Market362
Property Features for 16440 85th St
General Information
Standard status
Active
Size
21,750 SF
Property subtype
Commercial
Listing Agency:
LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES
(215) 917-1742
Listed By:
STREN LEA · License ##121073
Source:
Corcoran
Added: Aug 13, 2025
Changed: Aug 8
Last Checked: Aug 8 at 11:57AM
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.
Located in the heart of Redmond, the property at 16440 NE 85th Street offers 21,750 square feet of land. Currently, the site includes a medical office of approximately 2,200 square feet and two storage buildings totaling approximately 1,800 square feet, complemented by ample parking. The property benefits from Downtown Edge (DE) zoning, which allows for a variety of commercial and residential uses with a base maximum height of 45 feet before incentive increases. This flat, centrally located property in Downtown Redmond presents a prime opportunity for repurposing. The location provides exceptional connectivity, including proximity to the Redmond Transit Center (0.2 miles) and the Sound Transit East Link Light Rail station.
Key Highlights
- Prime location in Downtown Redmond with Downtown Edge (DE) zoning.
- Significant redevelopment potential due to upzone allowing commercial and residential uses.
- Proximity to Redmond Transit Center (0.2 miles) and Sound Transit East Link Light Rail station.
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
$288,236
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
6.87%
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%
$5,764,720
$5.8M
Cap Rate 7%
$4,117,657
$4.1M
Cap Rate 9%
$3,202,622
$3.2M
Market Conditions
NOI Build-Up for 21,750 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
$599.0K $27.54/SF
− Vacancy
−$118.6K −$5.45/SF
EGI
$480.4K $22.09/SF
− OpEx
−$192.2K −$8.83/SF
NOI
$288.2K $13.25/SF
Area
King County, WA
Vacancy
19.80%
Lease Rate
$27.54 /SF/Yr
Expense Ratio
40.00%
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%
$5,764,720
Cap Rate 7%
$4,117,657
Cap Rate 9%
$3,202,622
Alternative Uses
Best Use
Office B
$6.55M
$5.73M – $7.64M
NOI $458,642 @ 7.0% cap · market cap 10.93%
Second Best
Healthcare Medical
$4.12M
$3.60M – $4.80M
NOI $288,236 @ 7.0% cap · market cap 6.87%
Theoretical Best
Office A
$8.71M
$7.62M – $10.16M
NOI $609,800 @ 7.0% cap · market cap 14.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,968
Businesses Nearby
Explore this area
Business Placement
Demographics for 98052, WA
77,176
Population
34,946
Households
2.2
Avg Household Size
34
Median Age
75%
College-Educated
98%
High-School Grad
20.3 sq mi
ZIP Area
3,802
Density / Sq Mi
$164,848
Median Household Income
$106,078
Median Earnings
$2,339
Median Rent
$1,107,900
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?
Commercial land - 21,750 SF property in Downtown Redmond with development potential.
Where is this commercial land located?
The property is located at 16440 85th St Redmond, WA.
What is the asking price?
The asking price for this property is $4,198,000.
What are key features of this property?
This property features: Prime location in Downtown Redmond with Downtown Edge (DE) zoning.; Significant redevelopment potential due to upzone allowing commercial and residential uses.; Proximity to Redmond Transit Center (0.2 miles) and Sound Transit East Link Light Rail station.
