Two Buildings on Martin
For Sale
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3910-3912 Martin Way East, Olympia, WA 98506
Two commercial buildings near Providence Hospital with investment potential.
Property Size16,468 SF
Price / SF$224.37
Days on Market899
Property Features for 3910-3912 Martin Way East
General Information
Standard status
Active
Size
16,468 SF
Property subtype
Office
Building Details
Year Built
2006
Buildings
2
Listing Agency:
Coldwell Banker Evergreen
Listed By:
Deborah Draper-Aikins · License #WA
(360) 791-3869
Source:
Crexi
Added: Mar 18, 2024
Changed: Aug 21
Last Checked: Aug 31 at 10:38AM
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 Coldwell Banker Evergreen
Investment Insights
Based on property information with market context.
The property features two buildings constructed in 2006. New HVAC units have been installed in both buildings. The first building is occupied by Light Dental and Hatton Godat Pantier, who have several years remaining on their leases. The second building has multiple tenants with short-term leases. The property is suitable for an owner-user seeking to purchase and utilize the second building while benefiting from the investment income generated by the first building. Located on Martin Way East, the buildings are positioned near Providence Hospital and offer convenient access to I-5. The property provides an abundance of parking. The total property size is 16468 square feet.
Key Highlights
- Two high‑quality buildings built in 2006
- Located on busy Martin Way, close to Providence Hospital and I‑5 access
- First building provides investment income with long‑term leases (Light Dental and Hatton Godat Pantier)
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
$214,492
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
5.80%
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%
$4,289,840
$4.3M
Cap Rate 7%
$3,064,171
$3.1M
Cap Rate 9%
$2,383,244
$2.4M
Market Conditions
NOI Build-Up for 16,468 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
$355.7K $21.60/SF
− Vacancy
−$69.7K −$4.23/SF
EGI
$286.0K $17.37/SF
− OpEx
−$71.5K −$4.34/SF
NOI
$214.5K $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%
$4,289,840
Cap Rate 7%
$3,064,171
Cap Rate 9%
$2,383,244
Alternative Uses
Best Use
Office B
$3.06M
$2.68M – $3.57M
NOI $214,492 @ 7.0% cap · market cap 5.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.82M
$4.22M – $5.63M
NOI $337,528 @ 7.0% cap · market cap 9.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,663
Businesses Nearby
Explore this area
Business Placement
Demographics for 98506, WA
19,198
Population
9,041
Households
2.1
Avg Household Size
44
Median Age
51%
College-Educated
96%
High-School Grad
22.4 sq mi
ZIP Area
857
Density / Sq Mi
$93,968
Median Household Income
$50,388
Median Earnings
$1,431
Median Rent
$469,700
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 building - Two commercial buildings near Providence Hospital with investment potential.
Where is this office building located?
The property is located at 3910-3912 Martin Way East Olympia, WA.
What is the asking price?
The asking price for this property is $3,695,000.
What are key features of this property?
This property features: Two high‑quality buildings built in 2006; Located on busy Martin Way, close to Providence Hospital and I‑5 access; First building provides investment income with long‑term leases (Light Dental and Hatton Godat Pantier)
