Flex Space with
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3228-3232 1st Ave S, Seattle, WA 98134
Corner property combines warehouse, storefront, office, and leased practice-room space.
Property Size20,975 SF
Lot Size0.32 Acres
Price / SF$259.83
Days on Market146
Property Features for 3228-3232 1st Ave S
General Information
Standard status
Active
Size
20,975 SF
Lot size
0.32 Acres
Property subtype
INDUSTRIAL
Site & Location
Corner Location
Yes
Highway Access
Yes
Road Access
Yes
Warehouse & Industrial
Clear Span
Yes
Warehouse Space
9,000 SF
Building Details
Buildings
1
Building Size
20,975 SF
Tenancy
Multi
Listing Agency:
Berkshire Hathaway HomeServices Northwest Real Estate
(206) 915-6881
Listed By:
Paul Poirier
(206) 915-6881
Source:
Moodyscre
Added: Mar 20
Changed: Aug 8
Last Checked: Aug 11 at 1:17PM
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 HomeServices Northwest Real Estate
Investment Insights
Based on property information with market context.
Located at 3228-3232 1st Ave S in Seattle’s SODO district, this 20,975 SF building sits on a 14,100 SF lot approximately one mile south of downtown and near the stadiums. The corner property offers frontage along First Avenue South with access to I-5, I-90, and SR-99.
Approximately 9,000 SF is configured as open-span warehouse space that was previously operated as a nightclub. The building also includes 17 band/practice rooms leased on short-term agreements, three commercial storefront spaces along First Avenue South, and two office suites above the retail spaces. The layout combines warehouse, creative, practice-room, storefront, and office areas within one building, supporting a range of entertainment, production, storage, creative workspace, and light industrial uses identified in the property information.
Approximately 9,000 SF is configured as open-span warehouse space that was previously operated as a nightclub. The building also includes 17 band/practice rooms leased on short-term agreements, three commercial storefront spaces along First Avenue South, and two office suites above the retail spaces. The layout combines warehouse, creative, practice-room, storefront, and office areas within one building, supporting a range of entertainment, production, storage, creative workspace, and light industrial uses identified in the property information.
Key Highlights
- 20,975 SF building on a 14,100 SF lot in Seattle’s SODO district
- Approximately 9,000 SF of open‑span warehouse space
- 17 band/practice rooms leased on short‑term agreements
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
$368,230
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
6.76%
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%
$7,364,600
$7.4M
Cap Rate 7%
$5,260,429
$5.3M
Cap Rate 9%
$4,091,444
$4.1M
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
$636.8K $30.36/SF
− Vacancy
−$145.8K −$6.95/SF
EGI
$491.0K $23.41/SF
− OpEx
−$122.7K −$5.85/SF
NOI
$368.2K $17.56/SF
Area
Seattle, WA
Vacancy
22.90%
Lease Rate
$30.36 /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%
$7,364,600
Cap Rate 7%
$5,260,429
Cap Rate 9%
$4,091,444
Alternative Uses
Best Use
Office B
$5.26M
$4.60M – $6.14M
NOI $368,230 @ 7.0% cap · market cap 6.76%
Second Best
Retail
$4.47M
$3.91M – $5.21M
NOI $312,755 @ 7.0% cap · market cap 5.74%
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
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,058
Businesses Nearby
Well-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 Office in Seattle, WA
Questions? Ask Rey
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Similar Off Market Nearby
- Aramark — 73 S Spokane St, Seattle, WA 98134
- LISH — 2730 1st Ave S, Seattle, WA 98134
- On Safari Foods — 3317 3rd Ave S, Seattle, WA 98134
- lovely night catering — 2915 1st Ave S, Seattle, WA 98134
- Sodexo — 3310 6th Ave S, Seattle, WA 98134
Frequently Asked Questions
What type of property is this?
Flex space - Corner property combines warehouse, storefront, office, and leased practice-room space.
Where is this flex space located?
The property is located at 3228-3232 1st Ave S 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: 20,975 SF building on a 14,100 SF lot in Seattle’s SODO district; Approximately 9,000 SF of open‑span warehouse space; 17 band/practice rooms leased on short‑term agreements
