Investment Grade Tenant in
For Sale
$2,795,000
3208 W 19th Ave, Kennewick, WA 99337
NNN leased DaVita near Highway 395 and Kadlec Medical.
Property Size6,839 SF
Days on Market90
Property Features for 3208 W 19th Ave
General Information
Standard status
Active
Size
6,839 SF
Class
A
Property subtype
Office - Medical Office
Building Details
Building Size
6,839 SF
Year Built
2011
Listing Agency:
SVN | Retter & Company
(509) 308-1401
Listed By:
Aaron Rowe · License #100550
Source:
Commercialcafe
Added: May 15
Changed: Aug 8
Last Checked: Jul 16 at 4:19AM
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 SVN | Retter & Company
Investment Insights
Based on property information with market context.
Located in Kennewick, Washington, part of the Tri-Cities area, this property benefits from the region's strong economy, driven by the Department of Energy and a large agricultural sector. The area's favorable weather and cultural amenities contribute to a high quality of life. The property is strategically located off Highway 395, a primary regional arterial with high traffic counts, and is adjacent to Kadlec Regional Medical Center & Emergency campus, and 2 miles from the new Trios Southridge Hospital. It is also closely situated between many local retail centers such as Walmart, Fred Meyer, Home Depot and many local and national restaurants. The property is leased to DaVita Inc., the nation's leading provider of kidney dialysis services and a Fortune 500 company with an S&P Investment Grade Rating of BB. DaVita Inc. reported a 2025 full year Adjusted Operating Income of $2.094 Billion. The lease includes a corporate guarantee from DaVita, Inc. Washington is a Certificate of Need (CON) State, which limits competition and prevents an oversupply of dialysis and other medical facilities. The NNN lease provides passive income with minimal landlord management and represents a low-risk asset class. The lease includes annual rent increases along with extensions to extend.
Key Highlights
- Investment Grade Tenant: DaVita Inc., a Fortune 500 company, guarantees a stable income stream.
- Corporate Guarantee: Lease is backed by DaVita, Inc., ensuring financial security.
- Certificate of Need State: Washington's CON laws limit competition.
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
$104,979
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
3.76%
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%
$2,099,580
$2.1M
Cap Rate 7%
$1,499,700
$1.5M
Cap Rate 9%
$1,166,433
$1.2M
Market Conditions
NOI Build-Up for 6,839 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
$150.2K $21.96/SF
− Vacancy
−$10.2K −$1.49/SF
EGI
$140.0K $20.47/SF
− OpEx
−$35.0K −$5.12/SF
NOI
$105.0K $15.35/SF
Area
Benton County, WA
Vacancy
6.80%
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%
$2,099,580
Cap Rate 7%
$1,499,700
Cap Rate 9%
$1,166,433
Alternative Uses
Best Use
Office B
$1.50M
$1.31M – $1.75M
NOI $104,979 @ 7.0% cap · market cap 3.76%
Second Best
Healthcare Medical
$1.45M
$1.27M – $1.69M
NOI $101,505 @ 7.0% cap · market cap 3.63%
Theoretical Best
Office A
$1.90M
$1.66M – $2.21M
NOI $132,782 @ 7.0% cap · market cap 4.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
205
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 99337, WA
33,458
Population
11,725
Households
2.9
Avg Household Size
37
Median Age
29%
College-Educated
87%
High-School Grad
165.9 sq mi
ZIP Area
202
Density / Sq Mi
$90,227
Median Household Income
$49,829
Median Earnings
$1,347
Median Rent
$356,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Petco Vaccination Clinic — 4012 W 27th Ave, Kennewick, WA 99337
Frequently Asked Questions
What type of property is this?
Medical Office Space - NNN leased DaVita near Highway 395 and Kadlec Medical.
Where is this medical office space located?
The property is located at 3208 W 19th Ave Kennewick, WA.
What is the asking price?
The asking price for this property is $2,795,000.
What are key features of this property?
This property features: Investment Grade Tenant: DaVita Inc., a Fortune 500 company, guarantees a stable income stream.; Corporate Guarantee: Lease is backed by DaVita, Inc., ensuring financial security.; Certificate of Need State: Washington's CON laws limit competition.
