Standalone Office
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8601 W Clearwater Avenue, Kennewick, WA 99336
Owner-user office property with a separate NNN-leased suite and prominent digital reader board signage.
Property Size4,027 SF
Price / SF$244.60
Days on Market6
Property Features for 8601 W Clearwater Avenue
General Information
Standard status
Active
Size
4,027 SF
Class
Class A
Property subtype
OFFICE
Additional Details
Road Access
Yes
Amenities
Totem Sign with Digital Reader Board
Building Details
Buildings
1
Listing Agency:
SVN Retter & Company
(509) 737-9429
Listed By:
Scott Howell · License #131443
(509) 379-3111
Source:
Moodyscre
Added: Sep 9
Changed: Sep 13
Last Checked: Sep 14 at 12:46PM
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 SVN Retter & Company
Investment Insights
Based on property information with market context.
This standalone office property at 8601 W Clearwater Avenue includes 2,429 square feet designated for an owner or occupant, along with Suite A, a 1,667-square-foot leased office component. The property also includes a totem sign equipped with a digital reader board, providing on-site signage capability facing Clearwater Avenue.
Suite A is subject to a NNN lease extending through 12/31/2030, with 2.5% annual escalations. The building faces the main traffic arterial along Clearwater Avenue, combining owner-user office space with an existing leased suite and defined lease-term income.
Suite A is subject to a NNN lease extending through 12/31/2030, with 2.5% annual escalations. The building faces the main traffic arterial along Clearwater Avenue, combining owner-user office space with an existing leased suite and defined lease-term income.
Key Highlights
- 2,429 square feet designated for owner or occupant use
- Suite A contains 1,667 square feet
- NNN lease runs through 12/31/2030
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
$61,815
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
6.28%
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%
$1,236,300
$1.2M
Cap Rate 7%
$883,071
$883.1K
Cap Rate 9%
$686,833
$686.8K
Market Conditions
NOI Build-Up for 4,027 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
$88.4K $21.96/SF
− Vacancy
−$6.0K −$1.49/SF
EGI
$82.4K $20.47/SF
− OpEx
−$20.6K −$5.12/SF
NOI
$61.8K $15.35/SF
Area
Benton County, WA
Vacancy
6.80%
Lease Rate
$21.96 /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%
$1,236,300
Cap Rate 7%
$883,071
Cap Rate 9%
$686,833
Alternative Uses
Best Use
Office B
$883.1K
$772.7K – $1.03M
NOI $61,815 @ 7.0% cap · market cap 6.28%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.12M
$977.3K – $1.30M
NOI $78,186 @ 7.0% cap · market cap 7.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
217
Businesses Nearby
Explore this area
Business Placement
Demographics for 99336, WA
51,127
Population
20,915
Households
2.4
Avg Household Size
33
Median Age
21%
College-Educated
85%
High-School Grad
13.4 sq mi
ZIP Area
3,815
Density / Sq Mi
$63,308
Median Household Income
$38,211
Median Earnings
$1,155
Median Rent
$292,300
Median Home Value
Check the figures for this property
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 building - Owner-user office property with a separate NNN-leased suite and prominent digital reader board signage.
Where is this office building located?
The property is located at 8601 W Clearwater Avenue Kennewick, WA.
What is the asking price?
The asking price for this property is $985,000.
What are key features of this property?
This property features: 2,429 square feet designated for owner or occupant use; Suite A contains 1,667 square feet; NNN lease runs through 12/31/2030
