Ground-Floor Office
New
For Sale
$1,300,000
600 S 227th Street COML, Des Moines, WA 98198
Des Moines, WA
Property Size3,282 SF
Price / SF$396.10
Days on Market7
Property Features for 600 S 227th Street COML
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Des Moines Waterfront
Standard status
Active
Building Details
Year built
2000
Listing Agency:
Engel & Volkers Seattle Downtown · Engel & Völkers
(206) 623-9697
Listed By:
Robert Laing · License #27769
Added: Sep 16
Changed: Sep 17
Last Checked: Sep 22 at 11:06AM
MLS# 2583068
Copyright © 2026 Engel & Völkers. 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.
This approximately 3,282-square-foot ground-floor commercial condominium is configured for professional office operations and will be delivered vacant. The existing buildout includes 9 private offices, a large conference room or library, reception and waiting areas, a kitchen, 3 restrooms, and substantial storage. Several offices are large enough to serve as meeting or conference rooms. The unit also includes 9 parking spaces and was built in 2000.
The property is in Des Moines near the marina, waterfront, restaurants, parks, and downtown amenities. Access is available to I-5, SR-509, and Sea-Tac Airport. The condominium declaration provides for office and retail use, subject to verification of specific use requirements under applicable zoning and condominium provisions.
The property is in Des Moines near the marina, waterfront, restaurants, parks, and downtown amenities. Access is available to I-5, SR-509, and Sea-Tac Airport. The condominium declaration provides for office and retail use, subject to verification of specific use requirements under applicable zoning and condominium provisions.
Key Highlights
- Approximately 3,282 SF of ground‑floor commercial condominium space
- 9 private offices plus a large conference room or library
- Reception area, waiting space, kitchen, 3 restrooms, and substantial storage
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
$69,208
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
5.32%
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%
$1,384,160
$1.4M
Cap Rate 7%
$988,686
$988.7K
Cap Rate 9%
$768,978
$769.0K
Market Conditions
NOI Build-Up for 3,282 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
$118.2K $36.00/SF
− Vacancy
−$25.9K −$7.88/SF
EGI
$92.3K $28.12/SF
− OpEx
−$23.1K −$7.03/SF
NOI
$69.2K $21.09/SF
Area
King County, WA
Vacancy
21.90%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
25.00%
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%
$1,384,160
Cap Rate 7%
$988,686
Cap Rate 9%
$768,978
Alternative Uses
Best Use
Office B
$988.7K
$865.1K – $1.15M
NOI $69,208 @ 7.0% cap · market cap 5.32%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.31M
$1.15M – $1.53M
NOI $92,017 @ 7.0% cap · market cap 7.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
668
Businesses Nearby
Explore this area
Business Placement
Demographics for 98198, WA
38,727
Population
15,267
Households
2.5
Avg Household Size
39
Median Age
31%
College-Educated
87%
High-School Grad
7.7 sq mi
ZIP Area
5,029
Density / Sq Mi
$83,938
Median Household Income
$48,776
Median Earnings
$1,770
Median Rent
$527,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office units - Vacant commercial condominium with an established professional office layout and office and retail use provided in the condominium declaration.
Where is this office units located?
The property is located at 600 S 227th Street COML Des Moines, WA.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Approximately 3,282 SF of ground‑floor commercial condominium space; 9 private offices plus a large conference room or library; Reception area, waiting space, kitchen, 3 restrooms, and substantial storage
