Downtown Bainbridge Island Standalone
For Sale
$1,088,000
Pending
250 Madrona Way NE, Bainbridge Island, WA 98110
2,889 SF office building in Bainbridge Island's downtown core.
Property Size2,889 SF
Days on Market572
Property Features for 250 Madrona Way NE
General Information
Standard status
Pending
Size
2,889 SF
Property subtype
Commercial
Building Details
Year Built
2001
Listing Agency:
WINDERMERE COMMERCIAL / ERES
(360) 692-6102
Listed By:
KELLY MULDROW, CCIM
Source:
Corcoran
Added: Jan 14, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:43AM
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 WINDERMERE COMMERCIAL / ERES
Investment Insights
Based on property information with market context.
Available for occupancy on June 1, 2025, this 2,889-square-foot standalone office building offers an opportunity to own a commercial building on Bainbridge Island’s downtown core. Located on a quiet street near the heart of Winslow, the property features high-quality construction and a design suitable for professional uses. The building consists of two commercial condos with a shared entry. Large western-facing windows provide natural light. The layout includes private offices, a conference room, and open flex areas. There is a kitchenette and bathroom on each floor. The property controls seven parking stalls, six of which are covered. As part of a professionally managed condominium project, this building is suitable for establishing or expanding a business.
Key Highlights
- Available June 1, 2025.
- 2,889 sq ft standalone office building in downtown Bainbridge Island.**
- High‑quality construction ideal for professional use.
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
$41,186
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
3.79%
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%
$823,720
$823.7K
Cap Rate 7%
$588,371
$588.4K
Cap Rate 9%
$457,622
$457.6K
Market Conditions
NOI Build-Up for 2,889 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
$62.4K $21.60/SF
− Vacancy
−$7.5K −$2.59/SF
EGI
$54.9K $19.01/SF
− OpEx
−$13.7K −$4.75/SF
NOI
$41.2K $14.26/SF
Area
Kitsap County, WA
Vacancy
12.00%
Lease Rate
$21.60 /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%
$823,720
Cap Rate 7%
$588,371
Cap Rate 9%
$457,622
Alternative Uses
Best Use
Office B
$588.4K
$514.8K – $686.4K
NOI $41,186 @ 7.0% cap · market cap 3.79%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$963.3K
$842.9K – $1.12M
NOI $67,434 @ 7.0% cap · market cap 6.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,873
Businesses Nearby
Explore this area
Business Placement
Demographics for 98110, WA
24,825
Population
10,728
Households
2.3
Avg Household Size
51
Median Age
75%
College-Educated
99%
High-School Grad
27.6 sq mi
ZIP Area
899
Density / Sq Mi
$159,882
Median Household Income
$77,528
Median Earnings
$2,081
Median Rent
$1,076,200
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 - 2,889 SF office building in Bainbridge Island's downtown core.
Where is this office building located?
The property is located at 250 Madrona Way NE Bainbridge Island, WA.
What is the asking price?
The asking price for this property is $1,088,000.
What are key features of this property?
This property features: Available June 1, 2025.; 2,889 sq ft standalone office building in downtown Bainbridge Island.**; High‑quality construction ideal for professional use.
