Flex Office and Storage
For Sale
Contact for pricing
349 E 3rd St, North Bend, WA 98045
Built in 1948 and improved over time, this flex building supports a combined office and storage use in DC zoning.
Property Size5,015 SF
Price / SF$229.31
Days on Market347
Property Features for 349 E 3rd St
General Information
Standard status
Active
Size
5,015 SF
Property subtype
OFFICE
Zoning
DC
Building Details
Year Built
1948
Listing Agency:
Lee & Associates Commercial Real Estate Services
(206) 852-1640
Listed By:
Amanda Hahnemann, CCIM
Source:
Moodyscre
Added: Aug 25, 2025
Changed: Jul 27
Last Checked: Jul 27 at 2:22PM
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 Lee & Associates Commercial Real Estate Services
Investment Insights
Based on property information with market context.
The Erickson Building is a flex-style property that combines office and storage functions under one roof. Built in 1948 and thoughtfully improved over the years, the building offers a work-and-storage layout designed for users needing both professional workspace and practical storage capacity.
The property is located at 349 E 3rd St in North Bend, WA, and falls under Downtown Commercial (DC) zoning. That zoning classification supports a range of potential uses for both professional and retail occupiers, depending on the specific application.
For buyers evaluating a mixed office-and-storage setup, this building provides a straightforward configuration within a downtown commercial zoning framework.
The property is located at 349 E 3rd St in North Bend, WA, and falls under Downtown Commercial (DC) zoning. That zoning classification supports a range of potential uses for both professional and retail occupiers, depending on the specific application.
For buyers evaluating a mixed office-and-storage setup, this building provides a straightforward configuration within a downtown commercial zoning framework.
Key Highlights
- Built in 1948 and improved over the years
- Flex building designed for combined office and storage functions
- Downtown Commercial (DC) zoning allows for a range of potential uses
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
$105,751
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
9.20%
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%
$2,115,020
$2.1M
Cap Rate 7%
$1,510,729
$1.5M
Cap Rate 9%
$1,175,011
$1.2M
Market Conditions
NOI Build-Up for 5,015 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
$180.5K $36.00/SF
− Vacancy
−$39.5K −$7.88/SF
EGI
$141.0K $28.12/SF
− OpEx
−$35.3K −$7.03/SF
NOI
$105.8K $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%
$2,115,020
Cap Rate 7%
$1,510,729
Cap Rate 9%
$1,175,011
Alternative Uses
Best Use
Office B
$1.51M
$1.32M – $1.76M
NOI $105,751 @ 7.0% cap · market cap 9.20%
Second Best
Flex RnD
$1.03M
$900.0K – $1.20M
NOI $71,998 @ 7.0% cap · market cap 6.26%
Theoretical Best
Office A
$2.01M
$1.76M – $2.34M
NOI $140,605 @ 7.0% cap · market cap 12.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
682
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98045, WA
15,749
Population
5,871
Households
2.7
Avg Household Size
41
Median Age
52%
College-Educated
96%
High-School Grad
172.3 sq mi
ZIP Area
91
Density / Sq Mi
$161,897
Median Household Income
$75,450
Median Earnings
$2,153
Median Rent
$845,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Built in 1948 and improved over time, this flex building supports a combined office and storage use in DC zoning.
Where is this flex space located?
The property is located at 349 E 3rd St North Bend, WA.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: Built in 1948 and improved over the years; Flex building designed for combined office and storage functions; Downtown Commercial (DC) zoning allows for a range of potential uses
