Former Bank Building with
For Sale
$1,995,000
Pending
8801 Tacoma Way, Lakewood, WA 98499
Unique mid-century modern building suitable for retail, restaurant, or office.
Property Size10,660 SF
Lot Size0.24 Acres
Days on Market313
Property Features for 8801 Tacoma Way
General Information
Standard status
Pending
Size
10,660 SF
Lot size
0.24 Acres
Property subtype
Commercial
Building Details
Year Built
1970
Listing Agency:
LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES
Listed By:
RACHEL CORP · License #WA 41623
(253) 686-7474
Source:
Corcoran
Added: Oct 31, 2025
Changed: Jul 10
Last Checked: Jul 23 at 7:33AM
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 former bank building features dramatic 20-foot ceilings throughout most of the 4,376 square foot main floor. The open, light-filled space is framed by classic glass-and-brick mid-century modern architecture. A 1,908 square foot mezzanine overlooks the main floor, suitable for offices or creative workspace. The property includes two drive-through lanes and a full basement for storage or potential expansion. It offers prime visibility at a signalized intersection along high-traffic S. Tacoma Way. This architecturally distinctive structure is suitable for retail, restaurant, financial, or professional use. The property size is 10,660 square feet.
Key Highlights
- Architecturally distinctive former bank building with dramatic 20‑foot ceilings and classic mid‑century modern design.
- High‑visibility location at a signalized intersection on high‑traffic S. Tacoma Way.
- Large 4,376 SF main level with open, light‑filled space suitable for various uses.
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
$106,609
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
5.34%
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%
$2,132,180
$2.1M
Cap Rate 7%
$1,522,986
$1.5M
Cap Rate 9%
$1,184,544
$1.2M
Market Conditions
NOI Build-Up for 10,660 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
$153.5K $14.40/SF
− Vacancy
−$11.4K −$1.07/SF
EGI
$142.1K $13.33/SF
− OpEx
−$35.5K −$3.33/SF
NOI
$106.6K $10.00/SF
Area
Pierce County, WA
Vacancy
7.40%
Lease Rate
$14.40 /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%
$2,132,180
Cap Rate 7%
$1,522,986
Cap Rate 9%
$1,184,544
Alternative Uses
Best Use
Specialty Retail
$1.52M
$1.33M – $1.78M
NOI $106,609 @ 7.0% cap · market cap 5.34%
Second Best
Retail
$1.32M
$1.16M – $1.54M
NOI $92,409 @ 7.0% cap · market cap 4.63%
Theoretical Best
Office A
$2.88M
$2.52M – $3.36M
NOI $201,541 @ 7.0% cap · market cap 10.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,035
Businesses Nearby
51k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 69%
Dining 28%
Hotels & Casinos 3%
Taco Bell
Dining
14,409 visits/mo
0.4 miles
76
Shops & Services
10,405 visits/mo
0.3 miles
7-Eleven
Shops & Services
7,039 visits/mo
0.1 miles
TwinStar Credit Union
Shops & Services
6,994 visits/mo
0.4 miles
Les Schwab Tire Center
Shops & Services
4,427 visits/mo
0.2 miles
Demographics for 98499, WA
33,188
Population
14,683
Households
2.3
Avg Household Size
35
Median Age
19%
College-Educated
85%
High-School Grad
8.8 sq mi
ZIP Area
3,771
Density / Sq Mi
$65,000
Median Household Income
$41,345
Median Earnings
$1,445
Median Rent
$370,000
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Bank - Unique mid-century modern building suitable for retail, restaurant, or office.
Where is this bank located?
The property is located at 8801 Tacoma Way Lakewood, WA.
What is the asking price?
The asking price for this property is $1,995,000.
What are key features of this property?
This property features: Architecturally distinctive former bank building with dramatic 20‑foot ceilings and classic mid‑century modern design.; High‑visibility location at a signalized intersection on high‑traffic S. Tacoma Way.; Large 4,376 SF main level with open, light‑filled space suitable for various uses.
