Remodeled Warehouse with
For Sale
Contact for pricing
2500 Mottman Rd SW, Tumwater, WA 98512
Recently remodeled warehouse with ample office space, offering combined storage and office use.
Property Size31,675 SF
Price / SF$126.12
Days on Market685
Property Features for 2500 Mottman Rd SW
General Information
Standard status
Active
Size
31,675 SF
Property subtype
INDUSTRIAL
Additional Details
Highway Access
Yes
Listing Agency:
Prime Locations, Inc.
(360) 943-9922
Listed By:
Zach Kosturos · License #98501
Source:
Moodyscre
Added: Oct 29, 2024
Changed: Sep 7
Last Checked: Sep 12 at 8:21AM
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 Prime Locations, Inc.
Investment Insights
Based on property information with market context.
This recently remodeled warehouse offers warehouse and storage space along with ample office space. The layout is designed to complement a combined operating setup, allowing an owner-user to consolidate office and warehouse functions in one location.
The property is located in Tumwater and is described as close to Highway 101 and Interstate 5, supporting convenient regional access.
For sale, the offering includes a warehouse facility with dedicated office space to support day-to-day operations and administration.
The property is located in Tumwater and is described as close to Highway 101 and Interstate 5, supporting convenient regional access.
For sale, the offering includes a warehouse facility with dedicated office space to support day-to-day operations and administration.
Key Highlights
- Recently remodeled warehouse in Tumwater
- Ample office space plus warehouse and storage space
- Located near Highway 101 and Interstate 5
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
$311,751
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
7.80%
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%
$6,235,020
$6.2M
Cap Rate 7%
$4,453,586
$4.5M
Cap Rate 9%
$3,463,900
$3.5M
Market Conditions
NOI Build-Up for 31,675 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
$387.7K $12.24/SF
− Vacancy
−$20.9K −$0.66/SF
EGI
$366.8K $11.58/SF
− OpEx
−$55.0K −$1.74/SF
NOI
$311.8K $9.84/SF
Area
Thurston County, WA
Vacancy
5.40%
Lease Rate
$12.24 /SF/Yr
Expense Ratio
15.00%
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%
$6,235,020
Cap Rate 7%
$4,453,586
Cap Rate 9%
$3,463,900
Alternative Uses
Best Use
Office B
$5.89M
$5.16M – $6.88M
NOI $412,561 @ 7.0% cap · market cap 10.33%
Second Best
Warehouse
$4.45M
$3.90M – $5.20M
NOI $311,751 @ 7.0% cap · market cap 7.80%
Theoretical Best
Office A
$9.27M
$8.12M – $10.82M
NOI $649,211 @ 7.0% cap · market cap 16.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
999
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98512, WA
31,422
Population
13,216
Households
2.4
Avg Household Size
41
Median Age
37%
College-Educated
95%
High-School Grad
138.7 sq mi
ZIP Area
227
Density / Sq Mi
$93,738
Median Household Income
$56,673
Median Earnings
$1,655
Median Rent
$438,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Recently remodeled warehouse with ample office space, offering combined storage and office use.
Where is this flex space located?
The property is located at 2500 Mottman Rd SW Tumwater, WA.
What is the asking price?
The asking price for this property is $3,995,000.
What are key features of this property?
This property features: Recently remodeled warehouse in Tumwater; Ample office space plus warehouse and storage space; Located near Highway 101 and Interstate 5
