Medical Office Building with
For Sale
Contact for pricing
223 N K St, Tacoma, WA 98403
3,096 SF medical office building with 8+ offices, multiple treatment rooms, lab space, and a sauna.
Property Size3,096 SF
Price / SF$387.60
Days on Market198
Property Features for 223 N K St
General Information
Standard status
Active
Size
3,096 SF
Property subtype
OFFICE
Zoning
TAC
Amenities
sauna
Listing Agency:
Berkshire Hathaway HomeServices Northwest Real Estate
(206) 755-3123
Listed By:
Jacob Menashe
(206) 755-3123
Source:
Moodyscre
Added: Jan 23
Changed: Aug 8
Last Checked: Aug 9 at 11:07AM
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 Berkshire Hathaway HomeServices Northwest Real Estate
Investment Insights
Based on property information with market context.
This versatile commercial building totals 3,096 SF and is currently configured with 8+ offices, many with sinks, along with four oversized treatment rooms suited for surgical use, specialty suites, or large private offices. Additional interior improvements include lab space, ample storage, four bathrooms, and a sauna. The layout also provides two reception areas/lobbies and two open front desk spaces for client and patient welcome.
The property features multiple separate entrances, offering flexibility for splitting into at least two distinct businesses or for multi-tenant use. Situated on an ample corner lot with 10+ on-site parking spaces, the building is positioned just near Tacoma General Hospital and is surrounded by medical, professional, and urban amenities.
Zoned TAC, the building allows a variety of commercial uses, and the property is described as having future redevelopment potential, including the possibility of building upward (buyer to verify).
The property features multiple separate entrances, offering flexibility for splitting into at least two distinct businesses or for multi-tenant use. Situated on an ample corner lot with 10+ on-site parking spaces, the building is positioned just near Tacoma General Hospital and is surrounded by medical, professional, and urban amenities.
Zoned TAC, the building allows a variety of commercial uses, and the property is described as having future redevelopment potential, including the possibility of building upward (buyer to verify).
Key Highlights
- 3,096 SF commercial building in New Tacoma with 8+ offices, lab space, ample storage, and four bathrooms
- Includes four oversized treatment rooms suited for surgical use, specialty suites, or large private offices
- Two reception areas/lobbies and two open front desk spaces for client/patient greeting
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
$50,155
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
4.18%
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%
$1,003,100
$1.0M
Cap Rate 7%
$716,500
$716.5K
Cap Rate 9%
$557,278
$557.3K
Market Conditions
NOI Build-Up for 3,096 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
$83.6K $27.00/SF
− Vacancy
−$16.7K −$5.40/SF
EGI
$66.9K $21.60/SF
− OpEx
−$16.7K −$5.40/SF
NOI
$50.2K $16.20/SF
Area
Tacoma, WA
Vacancy
20.00%
Lease Rate
$27.00 /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%
$1,003,100
Cap Rate 7%
$716,500
Cap Rate 9%
$557,278
Alternative Uses
Best Use
Office B
$716.5K
$626.9K – $835.9K
NOI $50,155 @ 7.0% cap · market cap 4.18%
Second Best
Healthcare Medical
$632.3K
$553.3K – $737.7K
NOI $44,260 @ 7.0% cap · market cap 3.69%
Theoretical Best
Office A
$951.6K
$832.7K – $1.11M
NOI $66,614 @ 7.0% cap · market cap 5.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,666
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98403, WA
8,341
Population
4,863
Households
1.7
Avg Household Size
39
Median Age
64%
College-Educated
99%
High-School Grad
1.0 sq mi
ZIP Area
8,341
Density / Sq Mi
$86,179
Median Household Income
$63,918
Median Earnings
$1,414
Median Rent
$737,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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- Metropolitan Veterinary Hospital — 401 Fawcett Ave, Tacoma, WA 98402
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Frequently Asked Questions
What type of property is this?
Medical Office Space - 3,096 SF medical office building with 8+ offices, multiple treatment rooms, lab space, and a sauna.
Where is this medical office space located?
The property is located at 223 N K St Tacoma, WA.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 3,096 SF commercial building in New Tacoma with 8+ offices, lab space, ample storage, and four bathrooms; Includes four oversized treatment rooms suited for surgical use, specialty suites, or large private offices; Two reception areas/lobbies and two open front desk spaces for client/patient greeting
