Olympia Medical Building with
For Sale
$815,000
Pending
3641 Ensign Rd NE, Olympia, WA 98506
Two-unit medical building with existing tenant and vacant suite.
Property Size3,562 SF
Days on Market300
Property Features for 3641 Ensign Rd NE
General Information
Standard status
Pending
Size
3,562 SF
Property subtype
Commercial
Building Details
Year Built
1982
Listing Agency:
OLYMPIC SOTHEBY'S INTERNATIONAL REALTY
(360) 528-4167
Listed By:
MAX STOTTLEMYRE · License #22011836
Source:
Corcoran
Added: Oct 25, 2025
Changed: Aug 8
Last Checked: Aug 8 at 6:25AM
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 OLYMPIC SOTHEBY'S INTERNATIONAL REALTY
Investment Insights
Based on property information with market context.
This commercial property in Olympia features a two-condo medical building. The building contains a 2,056-square-foot suite that is currently occupied, along with a vacant 1,428-square-foot suite suitable for an owner-occupant or additional tenant. The occupied unit generates a base monthly income of $6,743.41. The property is well-maintained and includes 23 parking spaces. The current tenant's lease extends through February 2030. The total building size is 3,562 square feet.
Key Highlights
- Income‑generating property with an occupied unit bringing in $6,743.41 per month.
- Vacant 1,428 sq ft suite available for owner occupancy or additional tenant.
- Long‑term tenant lease in place through February 2030.
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
$46,394
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
5.69%
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%
$927,880
$927.9K
Cap Rate 7%
$662,771
$662.8K
Cap Rate 9%
$515,489
$515.5K
Market Conditions
NOI Build-Up for 3,562 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
$76.9K $21.60/SF
− Vacancy
−$15.1K −$4.23/SF
EGI
$61.9K $17.37/SF
− OpEx
−$15.5K −$4.34/SF
NOI
$46.4K $13.02/SF
Area
Thurston County, WA
Vacancy
19.60%
Lease Rate
$21.60 /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%
$927,880
Cap Rate 7%
$662,771
Cap Rate 9%
$515,489
Alternative Uses
Best Use
Office B
$662.8K
$579.9K – $773.2K
NOI $46,394 @ 7.0% cap · market cap 5.69%
Second Best
Healthcare Medical
$409.8K
$358.6K – $478.2K
NOI $28,689 @ 7.0% cap · market cap 3.52%
Theoretical Best
Office A
$1.04M
$912.6K – $1.22M
NOI $73,007 @ 7.0% cap · market cap 8.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,105
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 98506, WA
19,198
Population
9,041
Households
2.1
Avg Household Size
44
Median Age
51%
College-Educated
96%
High-School Grad
22.4 sq mi
ZIP Area
857
Density / Sq Mi
$93,968
Median Household Income
$50,388
Median Earnings
$1,431
Median Rent
$469,700
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.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-unit medical building with existing tenant and vacant suite.
Where is this medical office space located?
The property is located at 3641 Ensign Rd NE Olympia, WA.
What is the asking price?
The asking price for this property is $815,000.
What are key features of this property?
This property features: Income‑generating property with an occupied unit bringing in $6,743.41 per month.; Vacant 1,428 sq ft suite available for owner occupancy or additional tenant.; Long‑term tenant lease in place through February 2030.
