Owner-User Office
For Sale
$4,250,000
2516 South Holgate Street, Tacoma, WA 98402
Heavy office buildout plus private parking below the building supports flexible owner-occupant use.
Property Size11,729 SF
Days on Market80
Property Features for 2516 South Holgate Street
General Information
Standard status
Active
Size
11,729 SF
Property subtype
Office
Building Details
Building Size
11,729 SF
Listing Agency:
Lee & Associates Commercial Real Estate Services
Listed By:
Kyle Prosser
(253) 691-8696
Source:
Lee-associates
Added: Jun 17
Changed: Sep 2
Last Checked: Sep 2 at 4:24PM
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 Lee & Associates Commercial Real Estate Services
Investment Insights
Based on property information with market context.
This owner-user property includes a substantial office buildout designed for day-to-day business operations. In addition to the office space, the building features dedicated areas for a bar and a test kitchen, set up for private events and hospitality-style activations. A key functional benefit is the private parking available below the building, providing on-site convenience for tenants and guests.
Located at 2516 South Holgate Street in Tacoma, WA 98402, the property’s parking configuration is built into the building itself, rather than relying solely on nearby surface parking. The combined office and event-oriented spaces create a workable environment for businesses that need both administrative space and controlled-use areas for hosting.
For an owner-occupant or investor-buyer looking to keep a portion for their own operations, the layout supports a hybrid workflow with office workspaces alongside bar/test kitchen space for private events. The private below-building parking can help reduce friction for staff and visitors during scheduled functions, while the heavy office buildout supports immediate use for professional teams.
Located at 2516 South Holgate Street in Tacoma, WA 98402, the property’s parking configuration is built into the building itself, rather than relying solely on nearby surface parking. The combined office and event-oriented spaces create a workable environment for businesses that need both administrative space and controlled-use areas for hosting.
For an owner-occupant or investor-buyer looking to keep a portion for their own operations, the layout supports a hybrid workflow with office workspaces alongside bar/test kitchen space for private events. The private below-building parking can help reduce friction for staff and visitors during scheduled functions, while the heavy office buildout supports immediate use for professional teams.
Key Highlights
- Heavy office buildout for owner‑user flexibility
- Private parking below the building
- Includes a bar and test kitchen for private events
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
$190,010
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
4.47%
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%
$3,800,200
$3.8M
Cap Rate 7%
$2,714,429
$2.7M
Cap Rate 9%
$2,111,222
$2.1M
Market Conditions
NOI Build-Up for 11,729 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
$316.7K $27.00/SF
− Vacancy
−$63.3K −$5.40/SF
EGI
$253.3K $21.60/SF
− OpEx
−$63.3K −$5.40/SF
NOI
$190.0K $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%
$3,800,200
Cap Rate 7%
$2,714,429
Cap Rate 9%
$2,111,222
Alternative Uses
Best Use
Office B
$2.71M
$2.38M – $3.17M
NOI $190,010 @ 7.0% cap · market cap 4.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.61M
$3.15M – $4.21M
NOI $252,361 @ 7.0% cap · market cap 5.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,040
Businesses Nearby
Explore this area
Business Placement
Demographics for 98402, WA
8,053
Population
4,788
Households
1.7
Avg Household Size
37
Median Age
44%
College-Educated
91%
High-School Grad
1.2 sq mi
ZIP Area
6,711
Density / Sq Mi
$54,712
Median Household Income
$43,145
Median Earnings
$1,478
Median Rent
$558,100
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?
Office building - Heavy office buildout plus private parking below the building supports flexible owner-occupant use.
Where is this office building located?
The property is located at 2516 South Holgate Street Tacoma, WA.
What is the asking price?
The asking price for this property is $4,250,000.
What are key features of this property?
This property features: Heavy office buildout for owner‑user flexibility; Private parking below the building; Includes a bar and test kitchen for private events
