Medical Office Building
For Sale
Contact for pricing
22306 Mountain Hwy E, Spanaway, WA 98387
A 4,821 sf medical center with multiple suites, including 1,200 sf vacant warm shell space.
Property Size4,821 SF
Lot Size0.50 Acres
Price / SF$200.17
Days on Market72
Property Features for 22306 Mountain Hwy E
General Information
Standard status
Active
Size
4,821 SF
Lot size
0.50 Acres
Property subtype
OFFICE
Occupancy
75%
Additional Details
Road Access
Yes
Amenities
great signage
two access points
Building Details
Year Built
2007
Listing Agency:
Kidder Mathews
(253) 722-1406
Listed By:
Joel Shabel · License #72923
(253) 722-1406
Source:
Moodyscre
Added: Jun 9
Changed: Aug 14
Last Checked: Aug 18 at 9:30AM
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 Kidder Mathews
Investment Insights
Based on property information with market context.
Mountain Highway Medical Center is a 4,821 sf medical office building with suites 100, 200, and 300 occupied by Tranquility Dental Wellness totaling 3,621 sf. The space is currently leased through 2031, with a five-year renewal option. The building was constructed in 2007.
The remaining 1,200 sf is vacant and delivered in warm shell condition, with the restroom already in place. The property offers great signage and two access points for straightforward ingress and egress, and it is located directly across the street from the Fred Meyer Center.
The building sits on a single 0.50-acre parcel.
The remaining 1,200 sf is vacant and delivered in warm shell condition, with the restroom already in place. The property offers great signage and two access points for straightforward ingress and egress, and it is located directly across the street from the Fred Meyer Center.
The building sits on a single 0.50-acre parcel.
Key Highlights
- Mountain Highway Medical Center totals 4,821 SF with suites 100, 200 & 300 occupied by Tranquility Dental Wellness
- Occupied space totals 3,621 SF; current lease term expires in 2031 with a five‑year renewal option
- Additional 1,200 SF vacant warm shell space available with restroom already in place
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
$68,360
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
7.08%
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%
$1,367,200
$1.4M
Cap Rate 7%
$976,571
$976.6K
Cap Rate 9%
$759,556
$759.6K
Market Conditions
NOI Build-Up for 4,821 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
$132.5K $27.48/SF
− Vacancy
−$18.5K −$3.85/SF
EGI
$113.9K $23.63/SF
− OpEx
−$45.6K −$9.45/SF
NOI
$68.4K $14.18/SF
Area
Pierce County, WA
Vacancy
14.00%
Lease Rate
$27.48 /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%
$1,367,200
Cap Rate 7%
$976,571
Cap Rate 9%
$759,556
Alternative Uses
Best Use
Healthcare Medical
$976.6K
$854.5K – $1.14M
NOI $68,360 @ 7.0% cap · market cap 7.08%
Second Best
Office B
$975.5K
$853.6K – $1.14M
NOI $68,286 @ 7.0% cap · market cap 7.08%
Theoretical Best
Office A
$1.30M
$1.14M – $1.52M
NOI $91,147 @ 7.0% cap · market cap 9.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
75.1%
Occupancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
214
Businesses Nearby
Explore this area
Business Placement
Demographics for 98387, WA
51,630
Population
17,151
Households
3
Avg Household Size
35
Median Age
17%
College-Educated
91%
High-School Grad
26.6 sq mi
ZIP Area
1,941
Density / Sq Mi
$101,141
Median Household Income
$54,167
Median Earnings
$1,837
Median Rent
$424,100
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?
Medical center - A 4,821 sf medical center with multiple suites, including 1,200 sf vacant warm shell space.
Where is this medical center located?
The property is located at 22306 Mountain Hwy E Spanaway, WA.
What is the asking price?
The asking price for this property is $965,000.
What are key features of this property?
This property features: Mountain Highway Medical Center totals 4,821 SF with suites 100, 200 & 300 occupied by Tranquility Dental Wellness; Occupied space totals 3,621 SF; current lease term expires in 2031 with a five‑year renewal option; Additional 1,200 SF vacant warm shell space available with restroom already in place
