Kent Mixed-Use Commercial
For Sale
Contact for pricing
408 Central Ave N, Kent, WA 98032
24,246 Sq Ft lot with 2,438 Sq Ft building.
Property Size24,240 SF
Lot Size0.56 Acres
Price / SF$226.90
Days on Market1212
Property Features for 408 Central Ave N
General Information
Standard status
Active
Size
24,240 SF
Lot size
0.56 Acres
Property subtype
Mixed Use
Listing Agency:
KW Commercial Keller Williams Puget Sound - Federal Way
(253) 835-4500
Listed By:
Austin Scarsella · License #WA 115168
Source:
Crexi
Added: May 9, 2023
Changed: Aug 28
Last Checked: Aug 29 at 6:41PM
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 KW Commercial Keller Williams Puget Sound - Federal Way
Investment Insights
Based on property information with market context.
This property features a 24,246 sq ft lot with a 2,438 sq ft building located in downtown Kent. The building is equipped with single-phase 110 and 220 V power and includes three bay doors ranging from 9 ft to 11 ft 7 in. Situated in a well-established commercial district, the property offers significant potential. The zoning allows for a wide variety of GCMU commercial, industrial, and retail uses.
Key Highlights
- Large 24,246 sq ft lot in Downtown Kent
- Versatile GCMU zoning allows for commercial, industrial, and retail uses
- 2,438 sq ft building included
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
$376,326
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
6.84%
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%
$7,526,520
$7.5M
Cap Rate 7%
$5,376,086
$5.4M
Cap Rate 9%
$4,181,400
$4.2M
Market Conditions
NOI Build-Up for 24,240 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
$654.5K $27.00/SF
− Vacancy
−$52.4K −$2.16/SF
EGI
$602.1K $24.84/SF
− OpEx
−$225.8K −$9.32/SF
NOI
$376.3K $15.53/SF
Area
Kent, WA
Vacancy
8.00%
Lease Rate
$27.00 /SF/Yr
Expense Ratio
37.50%
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%
$7,526,520
Cap Rate 7%
$5,376,086
Cap Rate 9%
$4,181,400
Alternative Uses
Best Use
Mixed Use
$5.38M
$4.70M – $6.27M
NOI $376,326 @ 7.0% cap · market cap 6.84%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.08M
$7.95M – $10.60M
NOI $635,873 @ 7.0% cap · market cap 11.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
751
Businesses Nearby
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
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - 24,246 Sq Ft lot with 2,438 Sq Ft building.
Where is this mixed-use property located?
The property is located at 408 Central Ave N Kent, WA.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: Large 24,246 sq ft lot in Downtown Kent; Versatile GCMU zoning allows for commercial, industrial, and retail uses; 2,438 sq ft building included
