Retail Property in Growing
For Sale
$2,225,000
Pending
7705 204th St NE, Arlington, WA 98223
Well-maintained retail property with long-term tenants in a growing area.
Property Size8,450 SF
Days on Market229
Property Features for 7705 204th St NE
General Information
Standard status
Pending
Size
8,450 SF
Property subtype
Commercial
Building Details
Year Built
1998
Listing Agency:
RE/MAX NORTHWEST REALTORS
Listed By:
BARBARA PREMO
(206) 595-6708
Source:
Corcoran
Added: Jan 22
Changed: Jul 6
Last Checked: Jul 23 at 7:16AM
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 RE/MAX NORTHWEST REALTORS
Investment Insights
Based on property information with market context.
This commercial retail property offers 8,450 square feet of space and features long-term tenants. The building has been recently updated with a new roof, upgraded air-conditioning, and kitchen improvements. Ample parking is available. The property is located in a rapidly growing area with numerous new apartment developments nearby, and downtown is just minutes away.
Key Highlights
- High visibility in a rapidly growing area.
- Turnkey investment with long‑term tenants.
- Recent upgrades: new roof, upgraded A/C, and kitchen improvements.
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
$119,076
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
5.35%
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%
$2,381,520
$2.4M
Cap Rate 7%
$1,701,086
$1.7M
Cap Rate 9%
$1,323,067
$1.3M
Market Conditions
NOI Build-Up for 8,450 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
$182.5K $21.60/SF
− Vacancy
−$12.4K −$1.47/SF
EGI
$170.1K $20.13/SF
− OpEx
−$51.0K −$6.04/SF
NOI
$119.1K $14.09/SF
Area
Snohomish County, WA
Vacancy
6.80%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$2,381,520
Cap Rate 7%
$1,701,086
Cap Rate 9%
$1,323,067
Alternative Uses
Best Use
Retail
$1.70M
$1.49M – $1.98M
NOI $119,076 @ 7.0% cap · market cap 5.35%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.36M
$2.06M – $2.75M
NOI $164,959 @ 7.0% cap · market cap 7.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
431
Businesses Nearby
117k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 38%
Shops & Services 35%
Dining 26%
Beauty & Spa 1%
Safeway
Groceries
44,473 visits/mo
0.2 miles
Safeway Gas
Shops & Services
19,757 visits/mo
0.1 miles
Burger King
Dining
13,586 visits/mo
0.1 miles
Starbucks
Dining
12,173 visits/mo
0.2 miles
7-Eleven
Shops & Services
9,570 visits/mo
0.2 miles
Demographics for 98223, WA
45,139
Population
18,224
Households
2.5
Avg Household Size
40
Median Age
21%
College-Educated
93%
High-School Grad
316.2 sq mi
ZIP Area
143
Density / Sq Mi
$96,478
Median Household Income
$52,487
Median Earnings
$1,780
Median Rent
$556,900
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail space - Well-maintained retail property with long-term tenants in a growing area.
Where is this retail space located?
The property is located at 7705 204th St NE Arlington, WA.
What is the asking price?
The asking price for this property is $2,225,000.
What are key features of this property?
This property features: High visibility in a rapidly growing area.; Turnkey investment with long‑term tenants.; Recent upgrades: **new roof, upgraded A/C, and kitchen improvements.**
