Fully Leased Retail Strip
For Sale
$3,150,000
Pending
3904 4th St, Renton, WA 98056
Multi-tenant retail strip center in Renton, Washington.
Property Size7,041 SF
Days on Market370
Property Features for 3904 4th St
General Information
Standard status
Pending
Size
7,041 SF
Property subtype
Commercial
Building Details
Year Built
2003
Listing Agency:
MARCUS & MILLICHAP, INC.
Listed By:
CLAYTON BROWN
Source:
Corcoran
Added: Aug 5, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:31AM
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 MARCUS & MILLICHAP, INC.
Investment Insights
Based on property information with market context.
The opportunity includes a fully leased, multi-tenant retail strip center located along NE 4th Street in Renton, Washington. The property size is 7041 square feet. All 5 tenants operate under NNN lease structures, which limits landlord obligations and offers a hedge against inflation through scheduled annual increases. The property benefits from excellent signage and visibility, with over 30,500 vehicles per day. The property has a strong historical occupancy, with the average length of occupancy being 17 years and no tenant having occupied the property for less than 10 years. Staggered lease expirations create near-term potential to unlock additional value, with average in-place rents currently 24.8% below market.
Key Highlights
- Fully leased multi‑tenant retail strip center.
- NNN lease structures limit landlord obligations and hedge against inflation.
- Strong historical occupancy with an average tenant length of 17 years.
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
$117,372
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
3.73%
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%
$2,347,440
$2.3M
Cap Rate 7%
$1,676,743
$1.7M
Cap Rate 9%
$1,304,133
$1.3M
Market Conditions
NOI Build-Up for 7,041 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
$177.4K $25.20/SF
− Vacancy
−$9.8K −$1.39/SF
EGI
$167.7K $23.81/SF
− OpEx
−$50.3K −$7.14/SF
NOI
$117.4K $16.67/SF
Area
Renton, WA
Vacancy
5.50%
Lease Rate
$25.20 /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%
$2,347,440
Cap Rate 7%
$1,676,743
Cap Rate 9%
$1,304,133
Alternative Uses
Best Use
Retail
$1.68M
$1.47M – $1.96M
NOI $117,372 @ 7.0% cap · market cap 3.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.29M
$2.01M – $2.68M
NOI $160,585 @ 7.0% cap · market cap 5.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
727
Businesses Nearby
Explore this area
Business Placement
Demographics for 98056, WA
36,344
Population
15,609
Households
2.3
Avg Household Size
38
Median Age
44%
College-Educated
88%
High-School Grad
7.6 sq mi
ZIP Area
4,782
Density / Sq Mi
$108,596
Median Household Income
$59,170
Median Earnings
$1,992
Median Rent
$726,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Strip mall - Multi-tenant retail strip center in Renton, Washington.
Where is this strip mall located?
The property is located at 3904 4th St Renton, WA.
What is the asking price?
The asking price for this property is $3,150,000.
What are key features of this property?
This property features: Fully leased multi‑tenant retail strip center.; NNN lease structures limit landlord obligations and hedge against inflation.; Strong historical occupancy with an average tenant length of 17 years.
