Manufacturing Property with Paint
New
For Sale
$3,100,000
3960 12th Ave SE, Lacey, WA 98503
Industrial facility combining office, showroom, warehouse, and production areas with dedicated loading and high-capacity electrical service.
Property Size32,446 SF
Price / SF$95.54
Days on Market3
Property Features for 3960 12th Ave SE
General Information
Standard status
Active
Size
32,446 SF
Property subtype
Industrial
Zoning
CBD-4
Warehouse & Industrial
Clear Height
22 ft
Warehouse Space
26,950 SF
Office Build-Out
5,496 SF
Power
400 amps
Voltage
480 V
Three-Phase Power
Yes
Additional Details
Asking Price
$3,100,000
Building Details
Year Built
1960
Buildings
1
Building Size
32,446 SF
Listing Agency:
NAI Puget Sound Properties
Listed By:
Sam Johnson · License #138068
(425) 586-5620
Source:
Nai-psp
Added: Sep 22
Changed: Sep 24
Last Checked: Sep 22 at 1:35PM
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 NAI Puget Sound Properties
Investment Insights
Based on property information with market context.
Built in 1960, this manufacturing property contains approximately 32,446 square feet arranged for office, showroom, warehouse, and production or distribution functions. The two-story office component measures approximately 5,496 square feet, while the warehouse area encompasses 26,950 square feet. A dedicated paint booth supports specialized operations, and the building offers a 22-foot clear height.
Loading includes grade-level access along with covered dock-high service. Electrical capacity includes 400-amp, 277/480V, 3-phase power. The property is located at 3960 12th Ave SE in Lacey, Washington, and carries CBD-4 zoning.
Loading includes grade-level access along with covered dock-high service. Electrical capacity includes 400-amp, 277/480V, 3-phase power. The property is located at 3960 12th Ave SE in Lacey, Washington, and carries CBD-4 zoning.
Key Highlights
- Approximately 32,446 square feet total
- Approximately 5,496 square feet of two‑story office space
- Approximately 26,950 square feet of warehouse space
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
$265,854
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
8.58%
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%
$5,317,080
$5.3M
Cap Rate 7%
$3,797,914
$3.8M
Cap Rate 9%
$2,953,933
$3.0M
Market Conditions
NOI Build-Up for 32,446 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
$447.8K $13.80/SF
− Vacancy
−$22.4K −$0.69/SF
EGI
$425.4K $13.11/SF
− OpEx
−$159.5K −$4.92/SF
NOI
$265.9K $8.19/SF
Area
Thurston County, WA
Vacancy
5.00%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
37.50%
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%
$5,317,080
Cap Rate 7%
$3,797,914
Cap Rate 9%
$2,953,933
Alternative Uses
Best Use
Warehouse
$4.56M
$3.99M – $5.32M
NOI $319,340 @ 7.0% cap · market cap 10.30%
Second Best
Mixed Use
$3.80M
$3.32M – $4.43M
NOI $265,854 @ 7.0% cap · market cap 8.58%
Theoretical Best
Office A
$9.50M
$8.31M – $11.08M
NOI $665,013 @ 7.0% cap · market cap 21.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
22 ft
Clear height
Location Intelligence
Trade Area within ½ mile
1,599
Businesses Nearby
Explore this area
Business Placement
Demographics for 98503, WA
40,346
Population
18,375
Households
2.2
Avg Household Size
38
Median Age
31%
College-Educated
93%
High-School Grad
11.1 sq mi
ZIP Area
3,635
Density / Sq Mi
$87,515
Median Household Income
$47,554
Median Earnings
$1,673
Median Rent
$407,700
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in West region
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Industrial facility combining office, showroom, warehouse, and production areas with dedicated loading and high-capacity electrical service.
Where is this manufacturing property located?
The property is located at 3960 12th Ave SE Lacey, WA.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: Approximately 32,446 square feet total; Approximately 5,496 square feet of two‑story office space; Approximately 26,950 square feet of warehouse space
