Highway 2 Roadside Retail
For Sale
Contact for pricing
36916 US-2, Sultan, WA 98294
High-visibility location with ample parking and outside storage.
Property Size2,087 SF
Price / SF$258.74
Days on Market668
Property Features for 36916 US-2
General Information
Standard status
Active
Size
2,087 SF
Property subtype
Industrial, Retail
Zoning
RB & R-5
Investment Type
Owner/User
Listing Agency:
Listed By:
Ben Davidson · License #23026809
Source:
Crexi
Added: Oct 22, 2024
Changed: Aug 14
Last Checked: Aug 19 at 6:40AM
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 Ben Davidson
Investment Insights
Based on property information with market context.
This property features a high-visibility roadside location with ample parking and yard space, as well as outside storage and existing monument signage. The location is suitable for sales or service providers catering to the Highway 2 corridor. It could also serve as an outfitter’s office and staging area for recreational guiding services or other seasonal uses. The property experiences over 14,000 vehicles per day, with seasonal surge traffic potentially doubling during peak seasons in winter and summer. Located in unincorporated Snohomish County, it offers a business-friendly environment and lower-than-average sales and use taxes. The property has added income potential by converting one of the structures to roadside food services or leasing a portion of the parking area to a drive-through convenience stand. The property size is 2087 square feet.
Key Highlights
- High visibility roadside location on Highway 2 corridor with over 14,000 vehicles per day, doubling seasonally.
- Ample parking and yard space with outside storage and existing monument signage.
- Located in unincorporated Snohomish County, offering a friendly business environment and lower sales/use taxes.
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
$29,410
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%
$588,200
$588.2K
Cap Rate 7%
$420,143
$420.1K
Cap Rate 9%
$326,778
$326.8K
Market Conditions
NOI Build-Up for 2,087 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
$45.1K $21.60/SF
− Vacancy
−$3.1K −$1.47/SF
EGI
$42.0K $20.13/SF
− OpEx
−$12.6K −$6.04/SF
NOI
$29.4K $14.09/SF
Area
Snohomish County, WA
Vacancy
6.80%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$588,200
Cap Rate 7%
$420,143
Cap Rate 9%
$326,778
Alternative Uses
Best Use
Retail
$420.1K
$367.6K – $490.2K
NOI $29,410 @ 7.0% cap · market cap 5.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$582.0K
$509.3K – $679.0K
NOI $40,742 @ 7.0% cap · market cap 7.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Demographics for 98294, WA
7,494
Population
3,144
Households
2.4
Avg Household Size
37
Median Age
30%
College-Educated
86%
High-School Grad
54.2 sq mi
ZIP Area
138
Density / Sq Mi
$87,981
Median Household Income
$51,875
Median Earnings
$1,533
Median Rent
$462,500
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - High-visibility location with ample parking and outside storage.
Where is this retail space located?
The property is located at 36916 US-2 Sultan, WA.
What is the asking price?
The asking price for this property is $540,000.
What are key features of this property?
This property features: High visibility roadside location on Highway 2 corridor with over 14,000 vehicles per day, doubling seasonally.; Ample parking and yard space with outside storage and existing monument signage.; Located in unincorporated Snohomish County, offering a friendly business environment and lower sales/use taxes.
