Downtown Office Building with
For Sale
$1,995,000
215 Prospect St, Bellingham, WA 98225
Office building offers multiple suites, separate entrances, skylights, and three HVAC systems, plus a dedicated parking lot.
Property Size5,567 SF
Price / SF$358.36
Days on Market52
Property Features for 215 Prospect St
General Information
Standard status
Active
Size
5,567 SF
Total Parking Spaces
25
Additional Details
Office Units
4
Building Details
Year Built
1912
Listing Agency:
Gage CRE
Listed By:
Tracy Carpenter · License #23452
(360) 483-0508
Source:
Hanshagmeier
Added: Jul 24
Changed: Sep 10
Last Checked: Sep 12 at 10:58AM
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.
This downtown office building spans 5,567 square feet and is set up for flexible occupancy. The building includes two law offices and two additional rentable suites, with separate entrances at the front and rear. Interior features include natural light from windows at both ends, six large skylights, and a flexible layout combining open space with private office areas, along with abundant storage. Three HVAC systems service the space.
The property includes a separate 14,180 square foot developable lot consisting of two parcels, which is currently dedicated to parking for 25 cars. It is located within three blocks of City Hall, the courthouse, the post office, and the public library, supporting convenient walkability and access to downtown infrastructure.
The configuration allows for a single tenant footprint or multi-tenancy, depending on how the suites are utilized.
The property includes a separate 14,180 square foot developable lot consisting of two parcels, which is currently dedicated to parking for 25 cars. It is located within three blocks of City Hall, the courthouse, the post office, and the public library, supporting convenient walkability and access to downtown infrastructure.
The configuration allows for a single tenant footprint or multi-tenancy, depending on how the suites are utilized.
Key Highlights
- 5,567 SF downtown Bellingham office building with unimpeded bay‑facing views and multiple sky lights
- Two law offices plus two additional rentable suites, with separate entrances (two front, two rear)
- Dedicated parking lot for 25 cars on a separate, 14,180 SF developable lot comprised of 2 parcels
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
3.90%
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 3.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.31M
$1.15M – $1.53M
NOI $91,931 @ 7.0% cap · market cap 4.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
4
Office units
Location Intelligence
Trade Area within ½ mile
3,364
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
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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 - Office building offers multiple suites, separate entrances, skylights, and three HVAC systems, plus a dedicated parking lot.
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 $1,995,000.
What are key features of this property?
This property features: 5,567 SF downtown Bellingham office building with unimpeded bay‑facing views and multiple sky lights; Two law offices plus two additional rentable suites, with separate entrances (two front, two rear); Dedicated parking lot for 25 cars on a separate, 14,180 SF developable lot comprised of 2 parcels
