Industrial Outdoor Storage
For Sale
$1,350,000
Pending
7517 Portland Ave E, Tacoma, WA 98404
Industrial property with office, fenced yard, and garage/warehouse.
Property Size2,960 SF
Days on Market182
Property Features for 7517 Portland Ave E
General Information
Standard status
Pending
Size
2,960 SF
Property subtype
Commercial
Building Details
Year Built
1965
Listing Agency:
LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES
(253) 238-0043
Listed By:
JOHN BAUDER, CCIM
Source:
Corcoran
Added: Feb 10
Changed: Jul 6
Last Checked: Jul 23 at 9:08AM
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 LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES
Investment Insights
Based on property information with market context.
This industrial outdoor storage property features a 2,960 square foot office building, a fenced and level yard area, and a 4,400 square foot garage/warehouse. The total area of the property is 36,000 square feet. It is centrally located in unincorporated Pierce County, with convenient access to I-5, situated 3 miles to the west and 4 miles to the north.
Key Highlights
- 36,000 SF Industrial Outdoor Storage (IOS) property.
- Excellent location in unincorporated Pierce County with easy I‑5 access.
- Includes a 2,960 SF office building.
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
$47,952
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
3.55%
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%
$959,040
$959.0K
Cap Rate 7%
$685,029
$685.0K
Cap Rate 9%
$532,800
$532.8K
Market Conditions
NOI Build-Up for 2,960 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
$79.9K $27.00/SF
− Vacancy
−$16.0K −$5.40/SF
EGI
$63.9K $21.60/SF
− OpEx
−$16.0K −$5.40/SF
NOI
$48.0K $16.20/SF
Area
Tacoma, WA
Vacancy
20.00%
Lease Rate
$27.00 /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%
$959,040
Cap Rate 7%
$685,029
Cap Rate 9%
$532,800
Alternative Uses
Best Use
Office B
$685.0K
$599.4K – $799.2K
NOI $47,952 @ 7.0% cap · market cap 3.55%
Second Best
Warehouse
$549.8K
$481.1K – $641.4K
NOI $38,484 @ 7.0% cap · market cap 2.85%
Theoretical Best
Office A
$909.8K
$796.1K – $1.06M
NOI $63,687 @ 7.0% cap · market cap 4.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
289
Businesses Nearby
Explore this area
Business Placement
Demographics for 98404, WA
35,172
Population
13,174
Households
2.7
Avg Household Size
35
Median Age
21%
College-Educated
84%
High-School Grad
7.1 sq mi
ZIP Area
4,954
Density / Sq Mi
$79,562
Median Household Income
$41,977
Median Earnings
$1,440
Median Rent
$387,300
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Industrial property - Industrial property with office, fenced yard, and garage/warehouse.
Where is this industrial property located?
The property is located at 7517 Portland Ave E Tacoma, WA.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 36,000 SF Industrial Outdoor Storage (IOS) property.; Excellent location in unincorporated Pierce County with easy I‑5 access.; Includes a 2,960 SF office building.
