Remodeled Office
New
For Sale
Contact for pricing
31003 18th Ave S, Federal Way, WA 98003
Two flexible structures offer private entrances, restrooms, and options for multiple occupants or shared office use.
Property Size5,193 SF
Price / SF$375.51
Days on Market4
Property Features for 31003 18th Ave S
General Information
Standard status
Active
Size
5,193 SF
Total Parking Spaces
14
Property subtype
OFFICE
Zoning
BC
Site & Location
Highway Access
Yes
Public Transit
Yes
Additional Details
Office Units
6
Building Details
Buildings
2
Tenancy
Multi
Listing Agency:
Red Rock Real Estate
(425) 296-2280
Listed By:
Connie Vega
(206) 850-9338
Source:
Moodyscre
Added: Sep 9
Changed: Sep 11
Last Checked: Sep 11 at 3:04PM
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 Red Rock Real Estate
Investment Insights
Based on property information with market context.
This office property comprises two remodeled buildings totaling 5,193 square feet on a corner lot. The improvements can support as many as six separate office spaces, with individual entrances and bathrooms. Building One contains 3,617 square feet, including a 3,047-square-foot main level with private offices, a kitchenette, and four bathrooms, plus a 570-square-foot lower-level office with large windows. Building Two provides 1,576 square feet with three private offices, open workspace, reception, and two restrooms; its layout can serve one user or be divided into two suites.
The site includes 14 parking stalls and potential yard space. BC zoning allows a broad range of potential uses. The property is one block from Pacific Hwy, with I-5 and a new light rail station approximately 5 minutes away.
The configuration supports full-building occupancy, partial owner use, or separate office leasing within the two structures.
The site includes 14 parking stalls and potential yard space. BC zoning allows a broad range of potential uses. The property is one block from Pacific Hwy, with I-5 and a new light rail station approximately 5 minutes away.
The configuration supports full-building occupancy, partial owner use, or separate office leasing within the two structures.
Key Highlights
- Two remodeled office buildings totaling 5,193 square feet
- Up to six separate office spaces, each with its own entrance and bathroom
- Building One includes 3,617 square feet; Building Two includes 1,576 square feet
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
$109,505
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
5.62%
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%
$2,190,100
$2.2M
Cap Rate 7%
$1,564,357
$1.6M
Cap Rate 9%
$1,216,722
$1.2M
Market Conditions
NOI Build-Up for 5,193 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
$186.9K $36.00/SF
− Vacancy
−$40.9K −$7.88/SF
EGI
$146.0K $28.12/SF
− OpEx
−$36.5K −$7.03/SF
NOI
$109.5K $21.09/SF
Area
King County, WA
Vacancy
21.90%
Lease Rate
$36.00 /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%
$2,190,100
Cap Rate 7%
$1,564,357
Cap Rate 9%
$1,216,722
Alternative Uses
Best Use
Office B
$1.56M
$1.37M – $1.83M
NOI $109,505 @ 7.0% cap · market cap 5.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.08M
$1.82M – $2.43M
NOI $145,595 @ 7.0% cap · market cap 7.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
6
Office units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,407
Businesses Nearby
Explore this area
Business Placement
Demographics for 98003, WA
51,751
Population
20,380
Households
2.5
Avg Household Size
37
Median Age
28%
College-Educated
88%
High-School Grad
11.5 sq mi
ZIP Area
4,500
Density / Sq Mi
$70,800
Median Household Income
$39,497
Median Earnings
$1,650
Median Rent
$428,500
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Two flexible structures offer private entrances, restrooms, and options for multiple occupants or shared office use.
Where is this office building located?
The property is located at 31003 18th Ave S Federal Way, WA.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: Two remodeled office buildings totaling 5,193 square feet; Up to six separate office spaces, each with its own entrance and bathroom; Building One includes 3,617 square feet; Building Two includes 1,576 square feet
