Office Condo with Flexible Suite
For Sale
Contact for pricing
8685 Martin Way SE, Lacey, WA 98516
Office condo currently configured as two suites, with lift options for ADA access and ample campus parking.
Property Size2,205 SF
Price / SF$283.45
Days on Market141
Property Features for 8685 Martin Way SE
General Information
Standard status
Active
Size
2,205 SF
Class
Class A
Property subtype
OFFICE
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
2
Building Details
Tenancy
Multi
Listing Agency:
Kidder Mathews
(360) 705-1337
Listed By:
Amy Harding · License #125436
(360) 705-1337
Source:
Moodyscre
Added: Mar 25
Changed: Aug 11
Last Checked: Aug 11 at 8:24AM
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 Kidder Mathews
Investment Insights
Based on property information with market context.
This office condo offers a flexible interior configuration totaling 2,205 SF. It is currently used as one 880 SF suite and one 1,325 SF suite, with the opportunity to combine the space into a single larger suite.
Access is convenient from the Nisqually exit, with close proximity to Joint Base Lewis McChord, and an alternate access route from Marvin Road. The unit benefits from lots of natural light and updated design features. While there is currently no ADA access, an ADA lift is feasible.
If you do not require ground-floor space, the layout may work well for a range of office uses, including options such as office, spa, counselor, and related professional services within a Class A building environment.
Access is convenient from the Nisqually exit, with close proximity to Joint Base Lewis McChord, and an alternate access route from Marvin Road. The unit benefits from lots of natural light and updated design features. While there is currently no ADA access, an ADA lift is feasible.
If you do not require ground-floor space, the layout may work well for a range of office uses, including options such as office, spa, counselor, and related professional services within a Class A building environment.
Key Highlights
- 2,205 SF office condo currently split into 880 SF and 1,325 SF suites
- Suites can be combined into one larger office suite
- No ADA access currently, but ADA lift is feasible
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
$28,720
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
4.60%
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%
$574,400
$574.4K
Cap Rate 7%
$410,286
$410.3K
Cap Rate 9%
$319,111
$319.1K
Market Conditions
NOI Build-Up for 2,205 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
$47.6K $21.60/SF
− Vacancy
−$9.3K −$4.23/SF
EGI
$38.3K $17.37/SF
− OpEx
−$9.6K −$4.34/SF
NOI
$28.7K $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%
$574,400
Cap Rate 7%
$410,286
Cap Rate 9%
$319,111
Alternative Uses
Best Use
Office B
$410.3K
$359.0K – $478.7K
NOI $28,720 @ 7.0% cap · market cap 4.60%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$645.6K
$564.9K – $753.2K
NOI $45,194 @ 7.0% cap · market cap 7.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
652
Businesses Nearby
Explore this area
Business Placement
Demographics for 98516, WA
29,443
Population
11,600
Households
2.5
Avg Household Size
38
Median Age
37%
College-Educated
94%
High-School Grad
28.8 sq mi
ZIP Area
1,022
Density / Sq Mi
$92,191
Median Household Income
$52,188
Median Earnings
$1,948
Median Rent
$528,000
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 units - Office condo currently configured as two suites, with lift options for ADA access and ample campus parking.
Where is this office units located?
The property is located at 8685 Martin Way SE Lacey, WA.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: 2,205 SF office condo currently split into 880 SF and 1,325 SF suites; Suites can be combined into one larger office suite; No ADA access currently, but ADA lift is feasible
