Ground-Floor Office
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For Sale
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612 S 227th St, Des Moines, WA 98198
Vacant professional office condominium with a flexible layout, dedicated reception, meeting space, kitchen, restrooms, and storage.
Property Size3,282 SF
Price / SF$396.10
Days on Market7
Property Features for 612 S 227th St
General Information
Standard status
Active
Size
3,282 SF
Total Parking Spaces
9
Property subtype
OFFICE
Additional Details
Floor
Ground Floor
Highway Access
Yes
Building Details
Owner Occupied
No
Listing Agency:
Engel & Volkers Seattle Downtown
(206) 623-9697
Listed By:
Roberto Laing
(206) 552-0599
Source:
Moodyscre
Added: Sep 16
Changed: Sep 18
Last Checked: Sep 21 at 12:02PM
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 Engel & Volkers Seattle Downtown
Investment Insights
Based on property information with market context.
This approximately 3,282-square-foot commercial condominium occupies a ground-floor position and is delivered vacant. The existing professional office buildout provides 9 private offices, a large conference room/library, reception and waiting areas, a kitchen, three restrooms, and substantial storage. Several offices are sized to support conference or meeting-room functions, offering flexibility for an owner-user or future lease-up.
The unit includes 9 parking spaces and maintains a commercial presence near the Des Moines Marina and waterfront, restaurants, parks, and downtown amenities. Access is convenient to I-5, SR-509, and Sea-Tac Airport. The condominium declaration allows office and retail use; buyers should verify that any intended use complies with applicable zoning and condominium requirements. The commercial unit is identified in property records as 600 S 227th St #COML, with 612 S 227th St serving as the commercial entrance and mailing address.
The unit includes 9 parking spaces and maintains a commercial presence near the Des Moines Marina and waterfront, restaurants, parks, and downtown amenities. Access is convenient to I-5, SR-509, and Sea-Tac Airport. The condominium declaration allows office and retail use; buyers should verify that any intended use complies with applicable zoning and condominium requirements. The commercial unit is identified in property records as 600 S 227th St #COML, with 612 S 227th St serving as the commercial entrance and mailing address.
Key Highlights
- Approximately 3,282 SF ground‑floor commercial condominium
- 9 private offices plus a large conference room/library
- Dedicated reception and waiting areas, 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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Open Analytics
Current Use
Lease Details
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
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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 professional office condominium with a flexible layout, dedicated reception, meeting space, kitchen, restrooms, and storage.
Where is this office units located?
The property is located at 612 S 227th St 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 ground‑floor commercial condominium; 9 private offices plus a large conference room/library; Dedicated reception and waiting areas, kitchen, 3 restrooms, and substantial storage
