Flex Space with Fenced
New
For Sale
$5,500,000
27802 Pacific Hwy S, Federal Way, WA 98032
Warehouse and office configuration with paved outdoor storage, vehicle parking, and a separate shop option.
Property Size8,933 SF
Days on Market2
Property Features for 27802 Pacific Hwy S
General Information
Standard status
Active
Size
8,933 SF
Total Parking Spaces
70
Property subtype
Industrial
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Building Details
Building Size
8,933 SF
Listing Agency:
NAI Puget Sound Properties
Listed By:
Tamir Ohayon · License #45683
(425) 586-5627
Source:
Naiglobal
Added: Sep 12
Last Checked: Sep 12 at 2:19PM
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 NAI Puget Sound Properties
Investment Insights
Based on property information with market context.
The property offers multiple flex configurations combining warehouse, shop, office, yard, and parking components. Unit A contains ±8,000 SF, including approximately 1,500 SF of office space, with a paved and fenced outdoor area that can support vehicle parking or contractor-yard use. The space can also be divided into 7,000 SF with 1,000 SF of office area.
Unit E provides ±933 SF of shop space with a small office and roll-up door. Additional yard area and parking are available with Unit E. The property has access to I-5 and visibility along Pacific Highway S, supporting a range of industrial, retail, and contractor-oriented operations.
Unit E provides ±933 SF of shop space with a small office and roll-up door. Additional yard area and parking are available with Unit E. The property has access to I-5 and visibility along Pacific Highway S, supporting a range of industrial, retail, and contractor-oriented operations.
Key Highlights
- Unit A totals ±8,000 SF, including approximately 1,500 SF of office space
- Approximately ~25,000 SF of paved and fenced yard area
- Parking capacity for up to 70 vehicles
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
$159,799
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
2.91%
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%
$3,195,980
$3.2M
Cap Rate 7%
$2,282,843
$2.3M
Cap Rate 9%
$1,775,544
$1.8M
Market Conditions
NOI Build-Up for 8,933 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
$235.8K $26.40/SF
− Vacancy
−$7.5K −$0.84/SF
EGI
$228.3K $25.56/SF
− OpEx
−$68.5K −$7.67/SF
NOI
$159.8K $17.89/SF
Area
King County, WA
Vacancy
3.20%
Lease Rate
$26.40 /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%
$3,195,980
Cap Rate 7%
$2,282,843
Cap Rate 9%
$1,775,544
Alternative Uses
Best Use
Retail
$2.28M
$2.00M – $2.66M
NOI $159,799 @ 7.0% cap · market cap 2.91%
Second Best
Flex RnD
$1.83M
$1.60M – $2.14M
NOI $128,248 @ 7.0% cap · market cap 2.33%
Theoretical Best
Office A
$3.58M
$3.13M – $4.17M
NOI $250,453 @ 7.0% cap · market cap 4.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
404
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98032, WA
38,744
Population
15,639
Households
2.5
Avg Household Size
35
Median Age
28%
College-Educated
84%
High-School Grad
17.0 sq mi
ZIP Area
2,279
Density / Sq Mi
$77,413
Median Household Income
$46,105
Median Earnings
$1,782
Median Rent
$473,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Warehouse and office configuration with paved outdoor storage, vehicle parking, and a separate shop option.
Where is this flex space located?
The property is located at 27802 Pacific Hwy S Federal Way, WA.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: Unit A totals ±8,000 SF, including approximately 1,500 SF of office space; Approximately ~25,000 SF of paved and fenced yard area; Parking capacity for up to 70 vehicles
