Flex Space with Drive-Through
For Sale
$1,750,000
509 E 1st Avenue, Kennewick, WA 99336
Commercial Sale, Kennewick, WA
Property Size10,500 SF
Lot Size1.37 Acres
Price / SF$166.67
Days on Market339
Property Features for 509 E 1st Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
INDUST /HEAVY
Parking
41
Subdivision
Kennewick East
Directions
South on Hwy 397 from Columbia Drive, West on First to property
Standard status
Active
APN
106802090006001
Size
10,500 SF
Lot size
1.37 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
5745
Amenities
security system
Building Details
Year built
1993
Listing Agency:
EverStar Realty
(509) 735-4042
Listed By:
Gayle Stack · License #2021
(509) 308-7310
Added: Oct 9, 2025
Changed: Aug 27
Last Checked: Sep 12 at 6:06PM
MLS# 288121
Copyright © 2026 PACMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Built in 1993, this 10,500-square-foot flex space combines office and warehouse improvements on a 1.37-acre industrial site. The office area includes HVAC, while the warehouse is heated with gas and equipped with 480V power. Multiple 14 x 14 roll-up doors support loading, and one bay provides drive-through access.
The property includes a securely fenced yard, a large air compressor with a distribution system, and workstations throughout the warehouse. A security system is installed and ready for activation. Zoned INDUST /HEAVY, the site is positioned directly off Hwy 397 in Kennewick, Washington.
The property includes a securely fenced yard, a large air compressor with a distribution system, and workstations throughout the warehouse. A security system is installed and ready for activation. Zoned INDUST /HEAVY, the site is positioned directly off Hwy 397 in Kennewick, Washington.
Key Highlights
- 10,500 square feet of office and warehouse space on 1.37 acres
- INDUST /HEAVY zoning
- Multiple 14 x 14 roll‑up doors
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
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Open Analytics
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
745
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial flex property with fenced outdoor storage, conditioned offices, and warehouse infrastructure for operational use.
Where is this flex space located?
The property is located at 509 E 1st Avenue 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 square feet of office and warehouse space on 1.37 acres; INDUST /HEAVY zoning; Multiple 14 x 14 roll‑up doors
