Multi-Tenant Office Building with Highway
For Sale
$2,400,000
8727 HWY 2, Spokane, WA 99224
COMMERCIAL - Spokane, WA
Property Size10,214 SF
Lot Size1.49 Acres
Price / SF$234.97
Days on Market385
Property Features for 8727 HWY 2
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
LIGHT INDUST
Interior features
Elevator, Handicap Restrooms, Phone Prewired
Exterior features
Lighting, Lawn
Basement
None
Accessibility
Accessible Approach with Ramp, Accessible Elevator Installed
Lot features
Open Lot, Landscaped, Corner Lot, Level
Directions
West to Spokane, Use the right 2 lanes to take exit 277 for US-2 W toward Spokane Airport/Davenport, Follow US-2 W to your destination.
Subdivision
Washington Counties
Standard status
Active
APN
25292.9055
Size
10,214 SF
Lot size
1.49 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
Please see legal description in the attached documents.
Tax Annual Amount
14642
Legal Description
Please see legal description in the attached documents.
Utilities
Utilities
Cable Available
Sewer type
Public Sewer
Heating system
Electric (Heating), Natural Gas, Forced Air
Cooling system
Central Air
Water source
Public
Amenities
interior reader board
monument sign
landscaped
Building Details
Year built
2001
Building materials
Brick, Concrete
Roof type
Composition
Architectural style
Other
Listing Agency:
Coldwell Banker Schneidmiller Realty · Coldwell Banker Real Estate
(800) 829-2555
Listed By:
Rob Kannapien · License #SP26107
(208) 704-3832
Added: Jul 23, 2025
Changed: Aug 4
Last Checked: Aug 11 at 6:06PM
MLS# 25-7661
Copyright © 2026 Coeur d'Alene Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Multi-tenant professional office building totaling 10,214 square feet on 1.49 acres, built in 2001. The main level includes a large open bull-pen area, two work areas, six private offices, a built reception area, two restrooms, and a bank vault. It also features glass viewing windows to a drive-through area and a working pneumatic tube system. A portion of the office space is served by an interior elevator, and the property includes central air plus heating with electric, forced air, and natural gas.
The second-floor space totals 5,080 square feet and includes a large bull-pen area, a built reception area, ten private offices, a large conference room with additional storage, a breakroom, two restrooms, and janitor closet. There are also two dedicated mechanical rooms and a separate back entrance/exit for the suite.
Located in Spokane on Highway 2 north of Spokane International Airport, the property benefits from excellent visibility and traffic counts of 28,000 cars per day. Amenities include a monument sign and interior reader board, along with good parking and lawn landscaping. Approximately 3 miles from Interstate 90.
The second-floor space totals 5,080 square feet and includes a large bull-pen area, a built reception area, ten private offices, a large conference room with additional storage, a breakroom, two restrooms, and janitor closet. There are also two dedicated mechanical rooms and a separate back entrance/exit for the suite.
Located in Spokane on Highway 2 north of Spokane International Airport, the property benefits from excellent visibility and traffic counts of 28,000 cars per day. Amenities include a monument sign and interior reader board, along with good parking and lawn landscaping. Approximately 3 miles from Interstate 90.
Key Highlights
- 10,214 SF multi‑tenant office building on 1.49 acres
- Highway 2 location north of Spokane International Airport with 28,000 cars per day traffic counts
- Main level: 5,134 SF with large bull‑pen, 6 private offices, reception, 2 restrooms, and bank vault
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
$146,254
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
6.09%
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%
$2,925,080
$2.9M
Cap Rate 7%
$2,089,343
$2.1M
Cap Rate 9%
$1,625,044
$1.6M
Market Conditions
NOI Build-Up for 10,214 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
$226.8K $22.20/SF
− Vacancy
−$31.7K −$3.11/SF
EGI
$195.0K $19.09/SF
− OpEx
−$48.8K −$4.77/SF
NOI
$146.3K $14.32/SF
Area
Spokane, WA
Vacancy
14.00%
Lease Rate
$22.20 /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%
$2,925,080
Cap Rate 7%
$2,089,343
Cap Rate 9%
$1,625,044
Alternative Uses
Best Use
Office B
$2.09M
$1.83M – $2.44M
NOI $146,254 @ 7.0% cap · market cap 6.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.64M
$2.31M – $3.07M
NOI $184,465 @ 7.0% cap · market cap 7.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
64
Businesses Nearby
Explore this area
Business Placement
Demographics for 99224, WA
24,085
Population
10,559
Households
2.3
Avg Household Size
39
Median Age
41%
College-Educated
96%
High-School Grad
118.8 sq mi
ZIP Area
203
Density / Sq Mi
$76,785
Median Household Income
$50,678
Median Earnings
$1,290
Median Rent
$439,700
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?
Office building - Multi-tenant professional office building with elevator, central air, and Light Indust zoning near Highway 2.
Where is this office building located?
The property is located at 8727 HWY 2 Spokane, WA.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: 10,214 SF multi‑tenant office building on 1.49 acres; Highway 2 location north of Spokane International Airport with 28,000 cars per day traffic counts; Main level: 5,134 SF with large bull‑pen, 6 private offices, reception, 2 restrooms, and bank vault
