Three-Story Office
New
For Sale
Contact for pricing
709 106th St S, Tacoma, WA 98444
Remodeled office areas, flexible lower-level space, and a fenced parking yard support varied business operations.
Property Size5,331 SF
Price / SF$147.25
Days on Market4
Property Features for 709 106th St S
General Information
Standard status
Active
Size
5,331 SF
Property subtype
OFFICE
Listing Agency:
Windermere Professional Partners
(253) 830-3526
Listed By:
Brent Tornquist · License #20433
(253) 988-3756
Source:
Moodyscre
Added: Aug 31
Changed: Sep 1
Last Checked: Sep 2 at 4:36PM
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 Windermere Professional Partners
Investment Insights
Based on property information with market context.
This three-story office building contains 5,331 square feet and combines remodeled administrative space with adaptable lower-level areas. The main floor includes a conference room, five private offices, a kitchen, bathroom, gathering room, and resource room. An unfinished apartment occupies the third floor, while the ground level can accommodate automotive work, workshop functions, or storage.
The property sits on a corner lot outside Tacoma city limits, with access to Hwy 512 and I-5. A fully fenced rear yard provides approximately 15 parking spaces. Building improvements include updated electrical, fire alarm, and security systems, adding practical infrastructure for continued office use and other supported commercial operations.
The property sits on a corner lot outside Tacoma city limits, with access to Hwy 512 and I-5. A fully fenced rear yard provides approximately 15 parking spaces. Building improvements include updated electrical, fire alarm, and security systems, adding practical infrastructure for continued office use and other supported commercial operations.
Key Highlights
- 5,331‑square‑foot, three‑story office building
- Remodeled main floor with conference room, five private offices, kitchen, bathroom, gathering room, and resource room
- Unfinished apartment on the third floor
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
$57,383
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
7.31%
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%
$1,147,660
$1.1M
Cap Rate 7%
$819,757
$819.8K
Cap Rate 9%
$637,589
$637.6K
Market Conditions
NOI Build-Up for 5,331 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
$96.0K $18.00/SF
− Vacancy
−$7.7K −$1.44/SF
EGI
$88.3K $16.56/SF
− OpEx
−$30.9K −$5.80/SF
NOI
$57.4K $10.76/SF
Area
Tacoma, WA
Vacancy
8.00%
Lease Rate
$18.00 /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%
$1,147,660
Cap Rate 7%
$819,757
Cap Rate 9%
$637,589
Alternative Uses
Best Use
Office B
$1.23M
$1.08M – $1.44M
NOI $86,362 @ 7.0% cap · market cap 11.00%
Second Best
Flex RnD
$819.8K
$717.3K – $956.4K
NOI $57,383 @ 7.0% cap · market cap 7.31%
Theoretical Best
Office A
$1.64M
$1.43M – $1.91M
NOI $114,702 @ 7.0% cap · market cap 14.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
491
Businesses Nearby
Explore this area
Business Placement
Demographics for 98444, WA
36,885
Population
13,762
Households
2.7
Avg Household Size
34
Median Age
15%
College-Educated
87%
High-School Grad
6.9 sq mi
ZIP Area
5,346
Density / Sq Mi
$64,464
Median Household Income
$39,829
Median Earnings
$1,581
Median Rent
$369,500
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 - Remodeled office areas, flexible lower-level space, and a fenced parking yard support varied business operations.
Where is this office building located?
The property is located at 709 106th St S Tacoma, WA.
What is the asking price?
The asking price for this property is $785,000.
What are key features of this property?
This property features: 5,331‑square‑foot, three‑story office building; Remodeled main floor with conference room, five private offices, kitchen, bathroom, gathering room, and resource room; Unfinished apartment on the third floor
