Retail Storefront
For Sale
$850,000
2525 Tacoma Ave S, Tacoma, WA 98402
Highly visible retail storefront in Tacoma’s Brewery District with strong vehicle traffic and convenient transit access.
Property Size4,970 SF
Days on Market108
Property Features for 2525 Tacoma Ave S
General Information
Standard status
Active
Size
4,970 SF
Property subtype
Retail
Building Details
Building Size
4,970 SF
Year Built
1959
Listing Agency:
Lee & Associates Commercial Real Estate Services
Listed By:
Harrison Laird
(206) 947-1594
Source:
Lee-associates
Added: Jun 7
Changed: Sep 20
Last Checked: Sep 21 at 5:58AM
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.
The property is a retail storefront in Tacoma’s Brewery District, offered for sale with tours available by appointment only. Please do not disturb the current tenant.
The location is described as being just minutes from downtown Tacoma, with strong vehicle traffic and excellent transit access. The listing also notes close proximity to the University of Washington Tacoma campus.
Nearby businesses referenced in the remarks include The Drop Pickleball Club, E9 Brewery, Sig Brewing Company, Berliner Beerhall, Tacoma Strength, and Jefferson Flats.
The location is described as being just minutes from downtown Tacoma, with strong vehicle traffic and excellent transit access. The listing also notes close proximity to the University of Washington Tacoma campus.
Nearby businesses referenced in the remarks include The Drop Pickleball Club, E9 Brewery, Sig Brewing Company, Berliner Beerhall, Tacoma Strength, and Jefferson Flats.
Key Highlights
- Highly visible retail storefront in Tacoma’s Brewery District
- Strong vehicle traffic with minutes to downtown Tacoma
- Convenient transit access
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
$59,804
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
7.04%
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%
$1,196,080
$1.2M
Cap Rate 7%
$854,343
$854.3K
Cap Rate 9%
$664,489
$664.5K
Market Conditions
NOI Build-Up for 4,970 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
$89.5K $18.00/SF
− Vacancy
−$4.0K −$0.81/SF
EGI
$85.4K $17.19/SF
− OpEx
−$25.6K −$5.16/SF
NOI
$59.8K $12.03/SF
Area
Tacoma, WA
Vacancy
4.50%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,196,080
Cap Rate 7%
$854,343
Cap Rate 9%
$664,489
Alternative Uses
Best Use
Retail
$854.3K
$747.6K – $996.7K
NOI $59,804 @ 7.0% cap · market cap 7.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.53M
$1.34M – $1.78M
NOI $106,935 @ 7.0% cap · market cap 12.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,207
Businesses Nearby
28k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 39%
Hotels & Casinos 31%
Shops & Services 27%
Home Improvements & Furnishings 3%
The Melting Pot
Dining
8,677 visits/mo
0.4 miles
Holiday Inn Express & Suites Tacoma Downtown
Hotels & Casinos
8,660 visits/mo
0.3 miles
Chevron
Shops & Services
7,157 visits/mo
0.3 miles
Happy Teriyaki
Dining
2,263 visits/mo
0.3 miles
Johnstone Supply
Home Improvements & Furnishings
931 visits/mo
0.2 miles
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in West region
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Similar Off Market Nearby
- Wildflower + Co. — 1744 pacific ave, tacoma, wa 98402
Frequently Asked Questions
What type of property is this?
Storefront property - Highly visible retail storefront in Tacoma’s Brewery District with strong vehicle traffic and convenient transit access.
Where is this storefront property located?
The property is located at 2525 Tacoma Ave S Tacoma, WA.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Highly visible retail storefront in Tacoma’s Brewery District; Strong vehicle traffic with minutes to downtown Tacoma; Convenient transit access
