Building Details

Year Built 1997

Tenancy Multi

Listing Agency: First Western Properties, Inc. Tacoma

Listed By: Jacob Fors · License #23033784

Source: Crexi

Added: Jun 4 Changed: Jul 10 Last Checked: Aug 5 at 3:39PM

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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 First Western Properties, Inc. Tacoma

Investment Insights

Based on property information with market context.

Forest Canyon is a two-building retail strip center built in 1997, totaling 16,432 SF on 6.93 acres. The property is configured for tenant flexibility and currently supports a mix of service, dining, and professional uses. A key component of the offering is a 5,603 SF vacant suite, providing immediate leasing opportunity within the center’s existing lineup. Parking is provided with 100 stalls for tenant and customer convenience.

The property is located at 3106–3110 Sumner Tapps Hwy E in Lake Tapps, WA, with strong frontage on busy Sumner Tapps Highway E. Access is described as convenient to WA-410 and SR-167, supporting regional connectivity for both residents and passing traffic.

Designed to serve the Lake Tapps area’s growing consumer base, Forest Canyon is positioned as a neighborhood center under Neighborhood Center zoning. The offering includes in-place NOI of $182,040 and projected pro forma NOI of $428,686 by 2028, reflecting the opportunity presented by the vacant 5,603 SF suite. For buyers seeking a high-profile neighborhood retail asset with existing tenant mix and a defined leasing component, this center provides a straightforward path to optimize occupancy.

Key Highlights

• Two‑building retail strip center totaling 16,432 SF on 6.93 acres, built in 1997
• 5,603 SF vacant suite provides immediate lease‑up potential
• Strong frontage on Sumner Tapps Hwy E with convenient access to WA‑410 and SR‑167

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

$232,746

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

4.16%

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%

$4,654,920 $4.7M

Cap Rate 7%

$3,324,943 $3.3M

Cap Rate 9%

$2,586,067 $2.6M

Market Conditions

NOI Build-Up for 16,432 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

$360.8K $21.96/SF

− Vacancy

−$50.5K −$3.07/SF

EGI

$310.3K $18.89/SF

− OpEx

−$77.6K −$4.72/SF

NOI

$232.7K $14.16/SF

Area

Pierce County, WA

Vacancy

14.00%

Lease Rate

$21.96 /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%

$4,654,920

Cap Rate 7%

$3,324,943

Cap Rate 9%

$2,586,067

Alternative Uses

Best Use

Office B

$3.32M

$2.91M – $3.88M (±1% cap)

NOI $232,746 @ 7.0% cap · market cap 4.16%

Second Best

Retail

$2.03M

$1.78M – $2.37M (±1% cap)

NOI $142,446 @ 7.0% cap · market cap 2.54%

Theoretical Best

Office A

$4.44M

$3.88M – $5.18M (±1% cap)

NOI $310,667 @ 7.0% cap · market cap 5.55%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Shopping centers

Suggested Use

Top Pick Auto Repair Shop Big Box & Wholesale Store Dental Office Building Supply Spa & Massage Center Auto Parts Store

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

Lease Details

Multi-tenant

Tenancy

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

94

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 98391, WA

56,427

Population

20,573

Households

2.7

Avg Household Size

38

Median Age

32%

College-Educated

95%

High-School Grad

38.4 sq mi

ZIP Area

1,469

Density / Sq Mi

$129,233

Median Household Income

$66,861

Median Earnings

$2,178

Median Rent

$578,300

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

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Frequently Asked Questions

What type of property is this?

Shopping center - Two-building retail strip center with highway frontage, 100 parking stalls, and a large vacant suite ready for lease-up.

Where is this shopping center located?

The property is located at 3106-3110 Sumner Tapps Hwy E Lake Tapps, WA.

What is the asking price?

The asking price for this property is $5,600,000.

What are key features of this property?

This property features: Two‑building retail strip center totaling 16,432 SF on 6.93 acres, built in 1997; 5,603 SF vacant suite provides immediate lease‑up potential; Strong frontage on Sumner Tapps Hwy E with convenient access to WA‑410 and SR‑167