Medical Office Property with Three
New
For Sale
$2,300,000
940 Central Ave N, Kent, WA 98032
Fully occupied dental facility with specialized buildouts, onsite parking, and Central Avenue frontage near downtown Kent.
Property Size6,386 SF
Lot Size0.73 Acres
Price / SF$360.16
Days on Market1
Property Features for 940 Central Ave N
General Information
Standard status
Active
Size
6,386 SF
Lot size
0.73 Acres
Property subtype
Office
Occupancy
100%
Site & Location
Highway Access
Yes
Road Access
Yes
Public Transit
Yes
Additional Details
Cap Rate
7.11%
Office Units
3
Building Details
Buildings
1
Tenancy
Multi
Listing Agency:
NAI Puget Sound Properties
Listed By:
Kyle Sterling · License #126435
(425) 586-5608
Source:
Nai-psp
Added: Sep 22
Last Checked: Sep 22 at 1:51PM
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 NAI Puget Sound Properties
Investment Insights
Based on property information with market context.
This medical office property is arranged as three suites serving two established dental practices. Specialized dental improvements support the current configuration, while onsite parking accommodates daily operations. The property encompasses approximately 0.73 acres and is 100% occupied. A new 15-year lease has been signed with an existing tenant and includes 2% annual rent increases; the offering reflects a 7.11% in-place capitalization rate.
The building fronts Central Avenue in Kent, with access near downtown Kent, Kent Station, and SR 167. Its location provides a practical setting for medical office operations with established occupancy and existing dental-oriented improvements.
The building fronts Central Avenue in Kent, with access near downtown Kent, Kent Station, and SR 167. Its location provides a practical setting for medical office operations with established occupancy and existing dental-oriented improvements.
Key Highlights
- Three‑suite medical office property occupied by two established dental practices
- 100% occupied with a new 15‑year lease signed with an existing tenant
- 7.11% in‑place capitalization rate
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
$125,299
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
5.45%
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%
$2,505,980
$2.5M
Cap Rate 7%
$1,789,986
$1.8M
Cap Rate 9%
$1,392,211
$1.4M
Market Conditions
NOI Build-Up for 6,386 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
$197.7K $30.96/SF
− Vacancy
−$30.6K −$4.80/SF
EGI
$167.1K $26.16/SF
− OpEx
−$41.8K −$6.54/SF
NOI
$125.3K $19.62/SF
Area
Kent, WA
Vacancy
15.50%
Lease Rate
$30.96 /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%
$2,505,980
Cap Rate 7%
$1,789,986
Cap Rate 9%
$1,392,211
Alternative Uses
Best Use
Office B
$1.79M
$1.57M – $2.09M
NOI $125,299 @ 7.0% cap · market cap 5.45%
Second Best
Healthcare Medical
$1.32M
$1.15M – $1.54M
NOI $92,292 @ 7.0% cap · market cap 4.01%
Theoretical Best
Office A
$2.39M
$2.09M – $2.79M
NOI $167,520 @ 7.0% cap · market cap 7.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
3
Office units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,080
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98032, WA
38,744
Population
15,639
Households
2.5
Avg Household Size
35
Median Age
28%
College-Educated
84%
High-School Grad
17.0 sq mi
ZIP Area
2,279
Density / Sq Mi
$77,413
Median Household Income
$46,105
Median Earnings
$1,782
Median Rent
$473,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in West region
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Similar Off Market Nearby
- Dr. Sandy Larson — McMonigle Veterinary Hospital, PLLC, 1014 Central Ave N, Kent, WA 98032
- McMonigle Veterinary Hospital — 1014 Central Ave N, Kent, WA 98032
Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully occupied dental facility with specialized buildouts, onsite parking, and Central Avenue frontage near downtown Kent.
Where is this medical office space located?
The property is located at 940 Central Ave N Kent, WA.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: Three‑suite medical office property occupied by two established dental practices; 100% occupied with a new 15‑year lease signed with an existing tenant; 7.11% in‑place capitalization rate
