Flex Space With Drive-Through
For Sale
$1,750,000
509 E 1st Ave, Kennewick, WA 99336
Fenced industrial property combines conditioned office space with a warehouse, specialized power, and multiple loading doors.
Property Size10,500 SF
Price / SF$166.67
Days on Market307
Property Features for 509 E 1st Ave
General Information
Standard status
Active
Size
10,500 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Utilities to Site
Yes
Additional Details
Voltage
480 V
Taxes and HOA fees
Annual Taxes
$5,745
Amenities
Security system
Listing Agency:
EverStar Realty
(509) 308-7310
Listed By:
Gayle Stack · License #2021
(509) 308-7310
Source:
Exprealty
Added: Oct 10, 2025
Changed: Aug 8
Last Checked: Aug 11 at 10:50AM
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 EverStar Realty
Investment Insights
Based on property information with market context.
This 10,500-square-foot flex property combines office and warehouse components for industrial operations. The office area includes HVAC, while the warehouse is equipped with gas heat, 480v power, workstations, and a large air compressor connected to a distribution system. Multiple 14 x 14 roll-up doors serve the building, including a bay configured for drive-through access. A security system is installed and ready for activation.
The property also includes a large securely fenced yard and direct access from Hwy 397. Its combination of enclosed work areas, loading infrastructure, utility capacity, and outdoor storage space supports a range of industrial and flex-space requirements.
The property also includes a large securely fenced yard and direct access from Hwy 397. Its combination of enclosed work areas, loading infrastructure, utility capacity, and outdoor storage space supports a range of industrial and flex-space requirements.
Key Highlights
- 10,500 SF flex property with office and warehouse areas
- Large securely fenced yard included
- Warehouse equipped with 480v power and gas heat
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
$83,243
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
4.76%
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%
$1,664,860
$1.7M
Cap Rate 7%
$1,189,186
$1.2M
Cap Rate 9%
$924,922
$924.9K
Market Conditions
NOI Build-Up for 10,500 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
$138.6K $13.20/SF
− Vacancy
−$10.5K −$1.00/SF
EGI
$128.1K $12.20/SF
− OpEx
−$44.8K −$4.27/SF
NOI
$83.2K $7.93/SF
Area
Benton County, WA
Vacancy
7.60%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
35.00%
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%
$1,664,860
Cap Rate 7%
$1,189,186
Cap Rate 9%
$924,922
Alternative Uses
Best Use
Office B
$2.30M
$2.01M – $2.69M
NOI $161,175 @ 7.0% cap · market cap 9.21%
Second Best
Flex RnD
$1.19M
$1.04M – $1.39M
NOI $83,243 @ 7.0% cap · market cap 4.76%
Theoretical Best
Office A
$2.91M
$2.55M – $3.40M
NOI $203,862 @ 7.0% cap · market cap 11.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
983
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 99336, WA
51,127
Population
20,915
Households
2.4
Avg Household Size
33
Median Age
21%
College-Educated
85%
High-School Grad
13.4 sq mi
ZIP Area
3,815
Density / Sq Mi
$63,308
Median Household Income
$38,211
Median Earnings
$1,155
Median Rent
$292,300
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?
Flex space - Fenced industrial property combines conditioned office space with a warehouse, specialized power, and multiple loading doors.
Where is this flex space located?
The property is located at 509 E 1st Ave Kennewick, WA.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: 10,500 SF flex property with office and warehouse areas; Large securely fenced yard included; Warehouse equipped with 480v power and gas heat
