Medical Office Condo with
For Sale
$650,000
905 Squalicum Way Unit 106, Bellingham, WA 98225
Dental-lab improvements include patient reception, treatment rooms, laboratory areas, and dedicated parking.
Property Size1,826 SF
Price / SF$355.97
Days on Market142
Property Features for 905 Squalicum Way Unit 106
General Information
Standard status
Active
Size
1,826 SF
Total Parking Spaces
4
Property subtype
General Commercial
Additional Details
Floor
Ground Floor, Second Floor
Highway Access
Yes
Office Units
1
Taxes and HOA fees
Annual Taxes
$4,158
Amenities
3
4 Parking Spaces.
Building Details
Year Built
2010
Listing Agency:
Gage CRE
(360) 483-0508
Listed By:
Tracy Carpenter · License #23452
Source:
Xome
Added: Apr 12
Changed: Aug 31
Last Checked: Aug 31 at 12:24AM
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 Gage CRE
Investment Insights
Based on property information with market context.
This medical office condominium within Squalicum Lofts Business Park contains 1,826 SF of built-out space arranged across two levels. The ground floor includes a reception and waiting area, 3 operatory rooms, a laboratory, restroom, and office. A separate processing laboratory occupies the second floor, providing a configuration tailored to dental and laboratory operations.
The unit fronts Squalicum Way within the business park and offers signage exposure along the roadway. Four dedicated parking spaces are assigned to the property, with 2 positioned at the front and 2 at the rear. Access to I-5 is convenient, while walking trails and Squalicum Creek Park are adjacent to the east of the complex. The property is part of the Squalicum Lofts Condo Association and was built in 2010.
The unit fronts Squalicum Way within the business park and offers signage exposure along the roadway. Four dedicated parking spaces are assigned to the property, with 2 positioned at the front and 2 at the rear. Access to I-5 is convenient, while walking trails and Squalicum Creek Park are adjacent to the east of the complex. The property is part of the Squalicum Lofts Condo Association and was built in 2010.
Key Highlights
- 1,826 SF medical office condominium in Squalicum Lofts Business Park
- Built‑out dental lab with reception, waiting area, 3 operatory spaces, office, and restroom
- Processing lab space located on the second floor
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
$25,551
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
3.93%
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%
$511,020
$511.0K
Cap Rate 7%
$365,014
$365.0K
Cap Rate 9%
$283,900
$283.9K
Market Conditions
NOI Build-Up for 1,826 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
$41.2K $22.56/SF
− Vacancy
−$7.1K −$3.90/SF
EGI
$34.1K $18.66/SF
− OpEx
−$8.5K −$4.66/SF
NOI
$25.6K $13.99/SF
Area
Whatcom County, WA
Vacancy
17.30%
Lease Rate
$22.56 /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%
$511,020
Cap Rate 7%
$365,014
Cap Rate 9%
$283,900
Alternative Uses
Best Use
Office B
$365.0K
$319.4K – $425.9K
NOI $25,551 @ 7.0% cap · market cap 3.93%
Second Best
Healthcare Medical
$256.3K
$224.3K – $299.0K
NOI $17,940 @ 7.0% cap · market cap 2.76%
Theoretical Best
Office A
$430.8K
$376.9K – $502.6K
NOI $30,154 @ 7.0% cap · market cap 4.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
432
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98225, WA
49,078
Population
24,202
Households
2
Avg Household Size
31
Median Age
48%
College-Educated
96%
High-School Grad
12.6 sq mi
ZIP Area
3,895
Density / Sq Mi
$62,220
Median Household Income
$33,122
Median Earnings
$1,430
Median Rent
$588,800
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?
Medical Office Space - Dental-lab improvements include patient reception, treatment rooms, laboratory areas, and dedicated parking.
Where is this medical office space located?
The property is located at 905 Squalicum Way Unit 106 Bellingham, WA.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 1,826 SF medical office condominium in Squalicum Lofts Business Park; Built‑out dental lab with reception, waiting area, 3 operatory spaces, office, and restroom; Processing lab space located on the second floor
