Office Building Near
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For Sale
Contact for pricing
703 Lilly Rd NE, Olympia, WA 98506
Professional workspace with access to I-5 and nearby residential and commercial areas.
Property Size3,856 SF
Price / SF$427.90
Days on Market6
Property Features for 703 Lilly Rd NE
General Information
Standard status
Active
Size
3,856 SF
Property subtype
OFFICE
Additional Details
Highway Access
Yes
Listing Agency:
BHGRE Commercial Premier NW
(360) 943-9922
Listed By:
Joni Baker
(360) 943-9922
Source:
Moodyscre
Added: Aug 25
Changed: Aug 29
Last Checked: Aug 29 at 10:08PM
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 BHGRE Commercial Premier NW
Investment Insights
Based on property information with market context.
This 3,856-square-foot office building at 703 Lilly Rd NE in Olympia provides a professional setting for office and other professional-service operations. The property is positioned just beyond St. Peters Hospital, placing it near an established medical destination and surrounding residential and commercial areas.
Access to major arterials and I-5 supports convenient arrival for clients and employees. The combination of office-oriented space, hospital proximity, and connectivity to nearby development gives the property a practical setting for a range of professional uses.
Access to major arterials and I-5 supports convenient arrival for clients and employees. The combination of office-oriented space, hospital proximity, and connectivity to nearby development gives the property a practical setting for a range of professional uses.
Key Highlights
- 3,856‑square‑foot office building
- 703 Lilly Rd NE, Olympia, WA 98506
- Positioned just past St. Peters Hospital
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
$50,224
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
3.04%
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%
$1,004,480
$1.0M
Cap Rate 7%
$717,486
$717.5K
Cap Rate 9%
$558,044
$558.0K
Market Conditions
NOI Build-Up for 3,856 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
$83.3K $21.60/SF
− Vacancy
−$16.3K −$4.23/SF
EGI
$67.0K $17.37/SF
− OpEx
−$16.7K −$4.34/SF
NOI
$50.2K $13.02/SF
Area
Thurston County, WA
Vacancy
19.60%
Lease Rate
$21.60 /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%
$1,004,480
Cap Rate 7%
$717,486
Cap Rate 9%
$558,044
Alternative Uses
Best Use
Office B
$717.5K
$627.8K – $837.1K
NOI $50,224 @ 7.0% cap · market cap 3.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.13M
$987.9K – $1.32M
NOI $79,033 @ 7.0% cap · market cap 4.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,867
Businesses Nearby
Explore this area
Business Placement
Demographics for 98506, WA
19,198
Population
9,041
Households
2.1
Avg Household Size
44
Median Age
51%
College-Educated
96%
High-School Grad
22.4 sq mi
ZIP Area
857
Density / Sq Mi
$93,968
Median Household Income
$50,388
Median Earnings
$1,431
Median Rent
$469,700
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?
Office building - Professional workspace with access to I-5 and nearby residential and commercial areas.
Where is this office building located?
The property is located at 703 Lilly Rd NE Olympia, WA.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: 3,856‑square‑foot office building; 703 Lilly Rd NE, Olympia, WA 98506; Positioned just past St. Peters Hospital
