Listing Agency: Kidder Mathews m***@kidder.com Show Phone

Listed By: Matt McLennan · License #127920

Source: Moodyscre

Added: Aug 10 Changed: Aug 14 Last Checked: Aug 17 at 4:34AM

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Investment Insights

Based on property information with market context.

This 3,330-square-foot commercial condominium unit is located within Algona Business Park. Classified as flex space, the property carries C1 zoning that supports a range of commercial and light-industrial uses.

The unit is positioned at 901 Algona Blvd N in Algona, within the Kent Valley industrial corridor. Direct access to SR-167 and SR-18 connects the property with Auburn, Kent, and the broader Puget Sound distribution network.

Key Highlights

• ±3,330‑square‑foot commercial condominium unit
• C1 zoning supports commercial and light‑industrial uses
• Located within Algona Business Park

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

$47,807

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

4.35%

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%

$956,140 $956.1K

Cap Rate 7%

$682,957 $683.0K

Cap Rate 9%

$531,189 $531.2K

Market Conditions

NOI Build-Up for 3,330 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

$91.7K $27.54/SF

− Vacancy

−$18.2K −$5.45/SF

EGI

$73.5K $22.09/SF

− OpEx

−$25.7K −$7.73/SF

NOI

$47.8K $14.36/SF

Area

King County, WA

Vacancy

19.80%

Lease Rate

$27.54 /SF/Yr

Expense Ratio

35.00%

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%

$956,140

Cap Rate 7%

$682,957

Cap Rate 9%

$531,189

Alternative Uses

Best Use

Flex RnD

$683.0K

$597.6K – $796.8K (±1% cap)

NOI $47,807 @ 7.0% cap · market cap 4.35%

Second Best

Industrial

$478.4K

$418.6K – $558.2K (±1% cap)

NOI $33,491 @ 7.0% cap · market cap 3.04%

Theoretical Best

Office A

$1.33M

$1.17M – $1.56M (±1% cap)

NOI $93,363 @ 7.0% cap · market cap 8.49%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Flex space

Suggested Use

Top Pick Real Estate Agency Locksmith (Bike/Boat/Book/etc) Store Carpet & Flooring Store Nail Salon Pharmacy

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

413

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 98001, WA

36,073

Population

12,369

Households

2.9

Avg Household Size

39

Median Age

28%

College-Educated

87%

High-School Grad

18.6 sq mi

ZIP Area

1,939

Density / Sq Mi

$107,218

Median Household Income

$54,332

Median Earnings

$1,927

Median Rent

$538,800

Median Home Value

Market

Vacancy Rate% for Industrial in West region

3.7% 2019

4.3% 2020

2.6% 2021

2.5% 2022

4.8% 2023

6.9% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this flex space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - C1-zoned commercial condominium with commercial and light-industrial use potential.

Where is this flex space located?

The property is located at 901 Algona Blvd N Algona, WA.

What is the asking price?

The asking price for this property is $1,100,000.

What are key features of this property?

This property features: ±3,330‑square‑foot commercial condominium unit; C1 zoning supports commercial and light‑industrial uses; Located within Algona Business Park