Historic Brick Office and
For Sale
$980,000
302 N Tower Avenue, Centralia, WA 98531
Stately brick building with open showroom space and updated offices, offering flexible use for owner-occupants or investors.
Property Size3,000 SF
Price / SF$326.67
Days on Market53
Property Features for 302 N Tower Avenue
General Information
Standard status
Active
Size
3,000 SF
Property subtype
Commercial
Building Details
Year Built
1943
Stories
2
Listing Agency:
COMPASS
(253) 987-1778
Listed By:
CHRIS MURPHY
Source:
Corcoran
Added: Jun 16
Changed: Jul 10
Last Checked: Jul 29 at 7:08AM
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 COMPASS
Investment Insights
Based on property information with market context.
This historic brick building features a slab-on-grade foundation and a layout that combines approximately 3,000 square feet of open showroom floor with an updated second-level office. The second level includes an en suite bath, and the structure retains remaining elements associated with a prior bank use, including a bank vault. Interior options include opening the drop ceiling and removing metal-clad window coverings to support a taller, more light-filled feel.
The property is positioned at a corner on N Tower and E Magnolia, located along a tree-lined arterial in Downtown Centralia. Public remarks also note the building began as the original City Hall before being converted to a bank building, contributing to its character and long-term construction.
The space can work for users seeking a blend of retail- or showroom-style floor space with dedicated office functionality. For investors or owner-occupants, the seller also offered real estate contract financing with at least 25% down and a 5-year balloon, with other terms subject to qualification and approval. Potential occupants should review the current finish, ceiling configuration, and window covering plan as part of their intended buildout and operating needs.
The property is positioned at a corner on N Tower and E Magnolia, located along a tree-lined arterial in Downtown Centralia. Public remarks also note the building began as the original City Hall before being converted to a bank building, contributing to its character and long-term construction.
The space can work for users seeking a blend of retail- or showroom-style floor space with dedicated office functionality. For investors or owner-occupants, the seller also offered real estate contract financing with at least 25% down and a 5-year balloon, with other terms subject to qualification and approval. Potential occupants should review the current finish, ceiling configuration, and window covering plan as part of their intended buildout and operating needs.
Key Highlights
- Year built 1943; stately brick building with slab‑on‑grade foundation and remaining bank vault elements
- Corner location on N Tower and E Magnolia in Downtown Centralia
- Approx. 3,000 SF open showroom floor for retail, office, or other flexible use
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
$48,227
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
4.92%
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%
$964,540
$964.5K
Cap Rate 7%
$688,957
$689.0K
Cap Rate 9%
$535,856
$535.9K
Market Conditions
NOI Build-Up for 3,000 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
$82.4K $27.48/SF
− Vacancy
−$18.1K −$6.05/SF
EGI
$64.3K $21.43/SF
− OpEx
−$16.1K −$5.36/SF
NOI
$48.2K $16.08/SF
Area
Lewis County, WA
Vacancy
22.00%
Lease Rate
$27.48 /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%
$964,540
Cap Rate 7%
$688,957
Cap Rate 9%
$535,856
Alternative Uses
Best Use
Office B
$689.0K
$602.8K – $803.8K
NOI $48,227 @ 7.0% cap · market cap 4.92%
Second Best
Retail
$554.0K
$484.8K – $646.4K
NOI $38,781 @ 7.0% cap · market cap 3.96%
Theoretical Best
Office A
$915.0K
$800.6K – $1.07M
NOI $64,051 @ 7.0% cap · market cap 6.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
84
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98531, WA
26,669
Population
11,070
Households
2.4
Avg Household Size
38
Median Age
21%
College-Educated
88%
High-School Grad
129.2 sq mi
ZIP Area
206
Density / Sq Mi
$61,963
Median Household Income
$37,330
Median Earnings
$1,068
Median Rent
$285,700
Median Home Value
Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Showroom - Stately brick building with open showroom space and updated offices, offering flexible use for owner-occupants or investors.
Where is this showroom located?
The property is located at 302 N Tower Avenue Centralia, WA.
What is the asking price?
The asking price for this property is $980,000.
What are key features of this property?
This property features: Year built 1943; stately brick building with slab‑on‑grade foundation and remaining bank vault elements; Corner location on N Tower and E Magnolia in Downtown Centralia; Approx. 3,000 SF open showroom floor for retail, office, or other flexible use
