Marcus & Millichap has arranged the sale of a fully leased government office building in Moses Lake, where the Washington State Department of Social and Health Services occupies the entire property. The single-tenant office asset totals 24,240 square feet and changed hands for $7.2 million, reflecting investor interest in long-term, government-backed income streams in the market.
The building was originally delivered in 2015 as a build-to-suit facility for the department, designed specifically around the agency’s operational requirements. The property is situated on a 3.26-acre site, providing a relatively low-coverage setting that includes on-site parking and associated site improvements suitable for an office use serving the community.
In advance of bringing the asset to market, ownership completed a series of upgrades aimed at maintaining the building’s functionality and appeal. Renovations included work on the parking lot, refreshed landscaping, enhanced lighting, and updates to the HVAC systems. These improvements were completed prior to the sale and positioned the property as a recently upgraded, stabilized asset at the time of closing.
The Washington State Department of Social and Health Services recently extended its commitment to the location, renewing its lease for an additional five years. The renewal came with a 17.5% rent increase over the prior lease term, reinforcing the tenant’s demand for the facility and providing the new owner with a defined income step-up over the near term.
Clayton Brown, senior managing director of investments and managing partner of The Brown Group, characterized the transaction as an example of sustained investor confidence in Moses Lake’s commercial real estate environment. He noted that the area is supported by a growing regional economy, an expanding population, and consistent demand for well-located commercial properties.
Brown and The Brown Group of Marcus & Millichap exclusively marketed the property on behalf of the seller, described as a Washington state government developer. The team also sourced the buyer, an investor with prior experience acquiring Washington state government-leased assets. The dual role of marketing the asset and procuring the buyer underscores the firm’s position in the government-lease niche within the region.
The combination of a purpose-built facility, recent capital improvements, a renewed lease with a rent increase, and a state agency tenant provided the framework for the sale. For both the seller and buyer, the transaction delivered a clear outcome: an exit from a completed government development for the seller, and for the buyer, a stabilized office investment backed by a public-sector tenant with newly extended term.
