Seattle Retail Property For
For Sale
$5,000,000
4800 40 Ave SW, Seattle, WA 98116
High-visibility corner lot in West Seattle Junction neighborhood.
Property Size19,556 SF
Price / SF$255.68
Days on Market412
Property Features for 4800 40 Ave SW
General Information
Standard status
Active
Size
19,556 SF
Listing Agency:
KIDDER MATHEWS
(206) 296-9610
Listed By:
DAN SWANSON · License #13533
Source:
Corcoran
Added: Jun 27, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:08AM
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 KIDDER MATHEWS
Investment Insights
Based on property information with market context.
Located in Seattle’s West Seattle Junction neighborhood, the property at 4800 40th Ave SW has a walk score of 95. The 5,504-SF building is on a corner lot and has previously operated as a daycare and a retail marijuana store. The parcel offers parking. The property is adjacent to a shopping center anchored by a Whole Foods grocery store, and is near shopping, grocery, and food and drink options. It is located blocks from a RapidRide C Line stop, which provides service to Downtown Seattle and South Lake Union. The property is within walking distance of the future Alaska Junction light rail stop, targeted for completion in 2032. The property size is 19,556 square feet.
Key Highlights
- Walker's Paradise: Enjoy a Walk Score of 95.
- Prime Location: Situated in the desirable West Seattle Junction neighborhood.
- Convenient Transportation: Just blocks from the RapidRide C Line stop, providing easy access to Downtown Seattle and South Lake Union.
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
$291,596
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
5.83%
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%
$5,831,920
$5.8M
Cap Rate 7%
$4,165,657
$4.2M
Cap Rate 9%
$3,239,956
$3.2M
Market Conditions
NOI Build-Up for 19,556 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
$429.4K $21.96/SF
− Vacancy
−$12.9K −$0.66/SF
EGI
$416.6K $21.30/SF
− OpEx
−$125.0K −$6.39/SF
NOI
$291.6K $14.91/SF
Area
Seattle, WA
Vacancy
3.00%
Lease Rate
$21.96 /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%
$5,831,920
Cap Rate 7%
$4,165,657
Cap Rate 9%
$3,239,956
Alternative Uses
Best Use
Retail
$4.17M
$3.64M – $4.86M
NOI $291,596 @ 7.0% cap · market cap 5.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.88M
$5.15M – $6.86M
NOI $411,844 @ 7.0% cap · market cap 8.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,146
Businesses Nearby
Explore this area
Business Placement
Demographics for 98116, WA
27,691
Population
14,652
Households
1.9
Avg Household Size
41
Median Age
69%
College-Educated
98%
High-School Grad
3.0 sq mi
ZIP Area
9,230
Density / Sq Mi
$130,504
Median Household Income
$86,680
Median Earnings
$2,033
Median Rent
$917,000
Median Home Value
Market
Vacancy Rate% for Retail in Seattle, WA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - High-visibility corner lot in West Seattle Junction neighborhood.
Where is this retail space located?
The property is located at 4800 40 Ave SW Seattle, WA.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: Walker's Paradise: Enjoy a Walk Score of 95.; Prime Location: Situated in the desirable West Seattle Junction neighborhood.; Convenient Transportation: Just blocks from the RapidRide C Line stop, providing easy access to Downtown Seattle and South Lake Union.
