Building Details

Year Built 1956

Listing Agency: Spivey Realty Group c***@spiveyrealtygroup.com Show Phone

Listed By: Chris Pierog · License #136693 Show Phone

Source: Multifamilyspecialist

Added: Mar 17 Changed: Aug 14 Last Checked: Aug 20 at 2:41PM

Report an Issue

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 Spivey Realty Group

Investment Insights

Based on property information with market context.

The property includes approximately 1,324 square feet of existing retail/commercial space on two commercial lots. It has previously operated as a laundromat and beauty shop, and the current configuration is described as a blank canvas for redevelopment. Depending on the end use, the site may support plans to divide the area into multiple commercial units, construct new commercial buildings, develop a multifamily project, or convert the property concept toward an RV park.

Located at 2542 State Route 109 in Ocean City, WA 98569, the property is described as being just minutes from the beach. Its two-lot layout and generous lot dimensions are specifically called out as factors that can help accommodate different development approaches.

This offering is best suited for owners and developers looking for flexible, multi-lot real estate where an existing structure could be repositioned or where new construction could be pursued within the two-lot footprint. The site’s ability to be reconfigured for different development concepts makes it a practical fit for buyers evaluating redevelopment options rather than a single, fixed use.

Key Highlights

• 1,324 sq ft existing commercial structure on two commercial lots
• Built in 1956
• Former laundromat and beauty shop with flexible redevelopment potential

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

$15,982

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

8.93%

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%

$319,640 $319.6K

Cap Rate 7%

$228,314 $228.3K

Cap Rate 9%

$177,578 $177.6K

Market Conditions

NOI Build-Up for 1,324 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

$23.8K $18.00/SF

− Vacancy

−$1.0K −$0.76/SF

EGI

$22.8K $17.24/SF

− OpEx

−$6.8K −$5.17/SF

NOI

$16.0K $12.07/SF

Area

Grays Harbor County, WA

Vacancy

4.20%

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%

$319,640

Cap Rate 7%

$228,314

Cap Rate 9%

$177,578

Alternative Uses

Best Use

Retail

$228.3K

$199.8K – $266.4K (±1% cap)

NOI $15,982 @ 7.0% cap · market cap 8.93%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$365.0K

$319.4K – $425.8K (±1% cap)

NOI $25,548 @ 7.0% cap · market cap 14.27%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Parking Lot & Garage Storage Facility Grocery & Convenience Store Big Box & Wholesale Store Computer & Electronic Repair Cafe & Coffee Shop

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

37

Businesses Nearby

2k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Sunrise Market Shops & Services

1,925 visits/mo 0.5 miles

Demographics for 98569, WA

6,964

Population

5,884

Households

1.2

Avg Household Size

62

Median Age

22%

College-Educated

93%

High-School Grad

13.3 sq mi

ZIP Area

524

Density / Sq Mi

$62,772

Median Household Income

$34,182

Median Earnings

$1,177

Median Rent

$373,900

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this retail space located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Retail space - 1,324 sq ft existing structure on two commercial lots minutes from the beach, suited for redevelopment or subdivision.

Where is this retail space located?

The property is located at 2542 State Route 109 Ocean City, WA.

What is the asking price?

The asking price for this property is $179,000.

What are key features of this property?

This property features: 1,324 sq ft existing commercial structure on two commercial lots; Built in 1956; Former laundromat and beauty shop with flexible redevelopment potential