Corner Flex Space Building with
For Sale
$5,449,950
3228 1ST, Seattle, WA 98134
Corner flex space building with storefront frontage, warehouse space, and office suites near major Seattle freeway access.
Property Size20,975 SF
Lot Size0.32 Acres
Price / SF$259.83
Days on Market348
Property Features for 3228 1ST
General Information
Standard status
Active
Size
20,975 SF
Lot size
0.32 Acres
Property subtype
Commercial
Site & Location
Corner Location
Yes
Highway Access
Yes
Road Access
Yes
Additional Details
Warehouse Space
9,000 SF
Building Details
Year Built
1937
Buildings
1
Building Size
20,975 SF
Tenancy
Multi
Listing Agency:
Berkshire Hathaway HS NW
Listed By:
Paul B. Poirier
(206) 363-8509
Source:
Century21northhomes
Added: Oct 1, 2025
Changed: Sep 12
Last Checked: Sep 13 at 9:03AM
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 Berkshire Hathaway HS NW
Investment Insights
Based on property information with market context.
This corner flex space building in Seattle’s SODO district offers a versatile live/work setup with multiple income streams. Built in 1937, the property sits on a 14,100 SF lot and includes a 20,975 SF building configured for warehouse, creative, and office uses. Approximately 9,000 SF is dedicated to warehouse-style open-span space, previously operated as a nightclub, with flexibility for entertainment, production, storage, creative workspace, or light industrial uses.
The front of the building includes three commercial storefront spaces along First Avenue South for strong street presence and additional revenue. Above the retail, there are two office suites that can support administrative or studio-type operations for the warehouse and entertainment components. The warehouse area is currently surrounded by 17 band/practice rooms leased on short-term agreements.
With direct access to major transportation routes including I-5, I-90, and SR-99, the property is positioned for an owner-user seeking a prominent building with flexible space and built-in revenue from existing short-term room leasing and storefront tenants.
The front of the building includes three commercial storefront spaces along First Avenue South for strong street presence and additional revenue. Above the retail, there are two office suites that can support administrative or studio-type operations for the warehouse and entertainment components. The warehouse area is currently surrounded by 17 band/practice rooms leased on short-term agreements.
With direct access to major transportation routes including I-5, I-90, and SR-99, the property is positioned for an owner-user seeking a prominent building with flexible space and built-in revenue from existing short-term room leasing and storefront tenants.
Key Highlights
- 14,100 SF lot with a 20,975 SF corner flex space building in SODO
- Approximately 9,000 SF open‑span warehouse area previously operated as a nightclub
- Three commercial storefront spaces along First Avenue South for street presence and revenue
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
$312,755
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
5.74%
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%
$6,255,100
$6.3M
Cap Rate 7%
$4,467,929
$4.5M
Cap Rate 9%
$3,475,056
$3.5M
Market Conditions
NOI Build-Up for 20,975 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
$460.6K $21.96/SF
− Vacancy
−$13.8K −$0.66/SF
EGI
$446.8K $21.30/SF
− OpEx
−$134.0K −$6.39/SF
NOI
$312.8K $14.91/SF
Area
Seattle, WA
Vacancy
3.00%
Lease Rate
$21.96 /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%
$6,255,100
Cap Rate 7%
$4,467,929
Cap Rate 9%
$3,475,056
Alternative Uses
Best Use
Retail
$4.47M
$3.91M – $5.21M
NOI $312,755 @ 7.0% cap · market cap 5.74%
Second Best
Warehouse
$3.29M
$2.88M – $3.84M
NOI $230,541 @ 7.0% cap · market cap 4.23%
Theoretical Best
Office A
$6.31M
$5.52M – $7.36M
NOI $441,727 @ 7.0% cap · market cap 8.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
315
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98134, WA
1,216
Population
241
Households
5
Avg Household Size
38
Median Age
26%
College-Educated
89%
High-School Grad
3.3 sq mi
ZIP Area
368
Density / Sq Mi
$66,119
Median Household Income
$35,472
Median Earnings
$1,551
Median Rent
$385,300
Median Home Value
Market
Vacancy Rate% for Industrial in Seattle, WA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Corner flex space building with storefront frontage, warehouse space, and office suites near major Seattle freeway access.
Where is this flex space located?
The property is located at 3228 1ST Seattle, WA.
What is the asking price?
The asking price for this property is $5,449,950.
What are key features of this property?
This property features: 14,100 SF lot with a 20,975 SF corner flex space building in SODO; Approximately 9,000 SF open‑span warehouse area previously operated as a nightclub; Three commercial storefront spaces along First Avenue South for street presence and revenue
