Downtown Bellingham Office Building For
For Sale
$2,500,000
215 Prospect St, Bellingham, WA 98225
Downtown Bellingham office building with developable lot and bay views.
Property Size5,567 SF
Lot Size0.40 Acres
Price / SF$449.07
Days on Market589
Property Features for 215 Prospect St
General Information
Standard status
Active
Size
5,567 SF
Lot size
0.40 Acres
Listing Agency:
Gage CRE
(360) 483-0508
Listed By:
Tracy Carpenter · License #23452
(360) 483-0508
Source:
Exprealty
Added: Jan 9, 2025
Changed: Jul 6
Last Checked: Aug 21 at 11:09AM
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 Gage CRE
Investment Insights
Based on property information with market context.
Available for purchase is a 5,567 square foot office building in downtown Bellingham, offered for the first time since 1987. The property includes a separate 14,180 square foot developable lot. The building, suitable for single or multi-tenant occupancy, currently houses two law offices and two additional rentable suites, each with separate entrances (two front, two rear). The building is serviced by 3 HVAC systems. The developable lot is currently used for parking and accommodates 25 cars across two separate parcels. The property is located near City Hall, the Courthouse, the Post Office, and the Public Library.
Key Highlights
- Unimpeded bay views and sunsets from a downtown Bellingham property.
- Rare opportunity: First time on market since 1987.
- Includes a 5,567 SF office building and a separate 14,180 SF developable lot.
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
$77,898
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
3.12%
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%
$1,557,960
$1.6M
Cap Rate 7%
$1,112,829
$1.1M
Cap Rate 9%
$865,533
$865.5K
Market Conditions
NOI Build-Up for 5,567 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
$125.6K $22.56/SF
− Vacancy
−$21.7K −$3.90/SF
EGI
$103.9K $18.66/SF
− OpEx
−$26.0K −$4.66/SF
NOI
$77.9K $13.99/SF
Area
Whatcom County, WA
Vacancy
17.30%
Lease Rate
$22.56 /SF/Yr
Expense Ratio
25.00%
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%
$1,557,960
Cap Rate 7%
$1,112,829
Cap Rate 9%
$865,533
Alternative Uses
Best Use
Office B
$1.11M
$973.7K – $1.30M
NOI $77,898 @ 7.0% cap · market cap 3.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.31M
$1.15M – $1.53M
NOI $91,931 @ 7.0% cap · market cap 3.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,556
Businesses Nearby
Explore this area
Business Placement
Demographics for 98225, WA
49,078
Population
24,202
Households
2
Avg Household Size
31
Median Age
48%
College-Educated
96%
High-School Grad
12.6 sq mi
ZIP Area
3,895
Density / Sq Mi
$62,220
Median Household Income
$33,122
Median Earnings
$1,430
Median Rent
$588,800
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?
Office building - Downtown Bellingham office building with developable lot and bay views.
Where is this office building located?
The property is located at 215 Prospect St Bellingham, WA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Unimpeded bay views and sunsets from a downtown Bellingham property.; Rare opportunity: First time on market since 1987.; Includes a 5,567 SF office building and a separate 14,180 SF developable lot.
