Yakima Medical Facility For
For Sale
Contact for pricing
504 North 40th Avenue, Yakima, WA 98908
Well-equipped medical facility leased to MultiCare Hospital until March 2027.
Property Size18,591 SF
Lot Size1.31 Acres
Price / SF$150.61
Days on Market99
Property Features for 504 North 40th Avenue
General Information
Standard status
Active
Size
18,591 SF
Class
B
Total Parking Spaces
70
Lot size
1.31 Acres
Property subtype
Office
Zoning
B-1
Investment Type
Owner/User
Building Details
Buildings
1
Units
70
Tenancy
Single
Listing Agency:
KW Commercial Yakima Valley
(509) 594-7989
Listed By:
Russ Roberts · License #WA 26317
Source:
Crexi
Added: May 20
Changed: Aug 12
Last Checked: Aug 25 at 8:33PM
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 KW Commercial Yakima Valley
Investment Insights
Based on property information with market context.
This 18,591 sq. ft. medical facility is an investment opportunity for an owner/user in the medical field. Located on North 40th Avenue in Yakima, the property is situated on a 1.31-acre lot zoned B-1, allowing for multiple uses. The building features 12,083 sq. ft. of finished ground floor space, 2,730 sq. ft. of finished basement space, and 3,778 sq. ft. of unfinished basement space. The layout includes 27 exam rooms, a private lab, 2 procedure rooms, 7 private offices, a breakroom, a conference room, and a gym. The property has 70 designated parking spaces. Infrastructure features include a metal roof and a fully sprinkled interior. There is reserved space for a future basement elevator. The property is currently leased to MultiCare Hospital through March 2027.
Key Highlights
- Leased to MultiCare Hospital through March 2027, providing immediate income.
- 18,591 sq. ft. medical facility optimized for healthcare with 27 exam rooms, private lab, and procedure rooms.
- Located on Yakima's North 40th, the 2nd most traveled street in Yakima.
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
$198,208
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
7.08%
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%
$3,964,160
$4.0M
Cap Rate 7%
$2,831,543
$2.8M
Cap Rate 9%
$2,202,311
$2.2M
Market Conditions
NOI Build-Up for 18,591 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
$354.7K $19.08/SF
− Vacancy
−$24.4K −$1.31/SF
EGI
$330.3K $17.77/SF
− OpEx
−$132.1K −$7.11/SF
NOI
$198.2K $10.66/SF
Area
Yakima County, WA
Vacancy
6.87%
Lease Rate
$19.08 /SF/Yr
Expense Ratio
40.00%
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%
$3,964,160
Cap Rate 7%
$2,831,543
Cap Rate 9%
$2,202,311
Alternative Uses
Best Use
Healthcare Medical
$2.83M
$2.48M – $3.30M
NOI $198,208 @ 7.0% cap · market cap 7.08%
Second Best
Office B
$2.83M
$2.47M – $3.30M
NOI $197,897 @ 7.0% cap · market cap 7.07%
Theoretical Best
Office A
$3.78M
$3.30M – $4.40M
NOI $264,278 @ 7.0% cap · market cap 9.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
671
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98908, WA
38,205
Population
15,496
Households
2.5
Avg Household Size
42
Median Age
33%
College-Educated
91%
High-School Grad
105.7 sq mi
ZIP Area
361
Density / Sq Mi
$80,266
Median Household Income
$43,789
Median Earnings
$1,302
Median Rent
$356,900
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?
Medical Office Space - Well-equipped medical facility leased to MultiCare Hospital until March 2027.
Where is this medical office space located?
The property is located at 504 North 40th Avenue Yakima, WA.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: Leased to MultiCare Hospital through March 2027, providing immediate income.; 18,591 sq. ft. medical facility optimized for healthcare with **27 exam rooms, private lab, and procedure rooms**.; Located on Yakima's North 40th, the 2nd most traveled street in Yakima.
