Flex Space with Covered
For Sale
$1,300,000
2105 Terrace Heights Dr., Yakima, WA 98901
COMMERCIAL - Yakima, WA
Property Size11,399 SF
Lot Size4.05 Acres
Price / SF$114.05
Days on Market1417
Property Features for 2105 Terrace Heights Dr.
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
COMMCL GENERAL
Directions
Butterfield Rd and Terrace Heights Dr
Standard status
Active
APN
***
Lot size
4.05 Acres
Taxes and HOA fees
Tax Year
8356
Tax Annual Amount
2025
Building Details
Year built
2004
Listing Agency:
NAI Tri-Cities Commercial
(509) 943-5200
Listed By:
Kenny Teasdale · License #135860
(509) 491-2205
Added: Sep 23, 2022
Changed: Aug 4
Last Checked: Aug 9 at 4:06PM
MLS# 264478
Copyright © 2026 PACMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This flex property includes multiple structures combining office and warehouse space across approximately +/-11,399 SF. An additional +/-4,648 SF of covered carport area provides functional space for fleet, storage, or other operational needs. The property was built in 2004 and occupies 4.05 acres under COMMCL GENERAL zoning.
Positioned on a corner in Yakima, the site benefits from exposure to approximately 30K VPD. Its location at 2105 Terrace Heights Dr. provides a prominent setting for commercial operations and signage, subject to applicable requirements. The combination of enclosed office and warehouse areas with substantial covered space offers a practical configuration for a range of flex-space uses.
Positioned on a corner in Yakima, the site benefits from exposure to approximately 30K VPD. Its location at 2105 Terrace Heights Dr. provides a prominent setting for commercial operations and signage, subject to applicable requirements. The combination of enclosed office and warehouse areas with substantial covered space offers a practical configuration for a range of flex-space uses.
Key Highlights
- Approximately +/-11,399 SF of combined office and warehouse space
- Additional +/-4,648 SF of covered carport area
- 4.05‑acre commercial site
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
$109,701
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
8.44%
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%
$2,194,020
$2.2M
Cap Rate 7%
$1,567,157
$1.6M
Cap Rate 9%
$1,218,900
$1.2M
Market Conditions
NOI Build-Up for 11,399 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
$139.5K $12.24/SF
− Vacancy
−$10.5K −$0.92/SF
EGI
$129.1K $11.32/SF
− OpEx
−$19.4K −$1.70/SF
NOI
$109.7K $9.62/SF
Area
Yakima County, WA
Vacancy
7.50%
Lease Rate
$12.24 /SF/Yr
Expense Ratio
15.00%
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%
$2,194,020
Cap Rate 7%
$1,567,157
Cap Rate 9%
$1,218,900
Alternative Uses
Best Use
Office B
$1.73M
$1.52M – $2.02M
NOI $121,340 @ 7.0% cap · market cap 9.33%
Second Best
Warehouse
$1.57M
$1.37M – $1.83M
NOI $109,701 @ 7.0% cap · market cap 8.44%
Theoretical Best
Office A
$2.31M
$2.03M – $2.70M
NOI $162,041 @ 7.0% cap · market cap 12.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
195
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98901, WA
32,351
Population
12,201
Households
2.7
Avg Household Size
33
Median Age
17%
College-Educated
72%
High-School Grad
184.5 sq mi
ZIP Area
175
Density / Sq Mi
$56,429
Median Household Income
$33,058
Median Earnings
$996
Median Rent
$268,100
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?
Flex space - Multiple office and warehouse structures support varied commercial operations.
Where is this flex space located?
The property is located at 2105 Terrace Heights Dr. Yakima, WA.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Approximately +/-11,399 SF of combined office and warehouse space; Additional +/-4,648 SF of covered carport area; 4.05‑acre commercial site
