Two-Story Medical Office
For Sale
Contact for pricing
1720 S 72nd St, Tacoma, WA 98408
Multi-tenant two-story office building with five suites, including three currently available spaces.
Property Size9,296 SF
Price / SF$172.12
Days on Market380
Property Features for 1720 S 72nd St
General Information
Standard status
Active
Size
9,296 SF
Property subtype
OFFICE
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
5
Building Details
Stories
2
Tenancy
Multi
Listing Agency:
Timothy Johnson Commercial Properties, LLC
(253) 589-9999
Listed By:
Margot Johnson
(253) 209-9998
Source:
Moodyscre
Added: Aug 31, 2025
Changed: Sep 9
Last Checked: Sep 13 at 6:57AM
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 Timothy Johnson Commercial Properties, LLC
Investment Insights
Based on property information with market context.
Offered for sale is the stately Hermitage Court, a two-story Tacoma professional and medical office building. The property is configured as a multi-tenant asset with five leasable suites, three of which are currently available. The available spaces include former chiropractic clinic and home health agency space, supporting the building’s established use for medical and professional tenants.
The building is located on South 72nd St near the I-5 on-ramp, providing convenient access to Interstate 5.
This sale offers an opportunity for an owner-user or investor seeking potential immediate occupancy while also benefiting from additional income potential from the remaining suites.
The building is located on South 72nd St near the I-5 on-ramp, providing convenient access to Interstate 5.
This sale offers an opportunity for an owner-user or investor seeking potential immediate occupancy while also benefiting from additional income potential from the remaining suites.
Key Highlights
- Two‑story Tacoma professional and medical office building on S 72nd St near the I‑5 on‑ramp
- Five total leasable suites, with three currently available
- Vacancies include former space used by a chiropractic clinic
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
$132,895
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
8.31%
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%
$2,657,900
$2.7M
Cap Rate 7%
$1,898,500
$1.9M
Cap Rate 9%
$1,476,611
$1.5M
Market Conditions
NOI Build-Up for 9,296 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
$242.1K $26.04/SF
− Vacancy
−$20.6K −$2.21/SF
EGI
$221.5K $23.83/SF
− OpEx
−$88.6K −$9.53/SF
NOI
$132.9K $14.30/SF
Area
Tacoma, WA
Vacancy
8.50%
Lease Rate
$26.04 /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%
$2,657,900
Cap Rate 7%
$1,898,500
Cap Rate 9%
$1,476,611
Alternative Uses
Best Use
Office B
$2.15M
$1.88M – $2.51M
NOI $150,595 @ 7.0% cap · market cap 9.41%
Second Best
Healthcare Medical
$1.90M
$1.66M – $2.21M
NOI $132,895 @ 7.0% cap · market cap 8.31%
Theoretical Best
Office A
$2.86M
$2.50M – $3.33M
NOI $200,013 @ 7.0% cap · market cap 12.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
5
Office units
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
433
Businesses Nearby
Explore this area
Business Placement
Demographics for 98408, WA
20,566
Population
8,418
Households
2.4
Avg Household Size
38
Median Age
25%
College-Educated
90%
High-School Grad
3.4 sq mi
ZIP Area
6,049
Density / Sq Mi
$78,855
Median Household Income
$45,786
Median Earnings
$1,610
Median Rent
$379,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Multi-tenant two-story office building with five suites, including three currently available spaces.
Where is this office building located?
The property is located at 1720 S 72nd St Tacoma, WA.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Two‑story Tacoma professional and medical office building on S 72nd St near the I‑5 on‑ramp; Five total leasable suites, with three currently available; Vacancies include former space used by a chiropractic clinic
