Medical Office with Alley
For Sale
Under Contract
$199,900
1235/1245 Main St, Sweet Home, OR 97386
Commercial, Sweet Home, OR
Property Size2,156 SF
Lot Size0.07 Acres
Price / SF$92.72
Days on Market40
Property Features for 1235/1245 Main St
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
C1
View
Territorial
Directions
Building is on southside of Main st (hwy 20) in the block between 12th & 13th
Standard status
Active Under Contract
Size
2,156 SF
Lot size
0.07 Acres
Taxes and HOA fees
Tax Annual Amount
2677
Utilities
Heating system
Electric (Heating), Zoned
Cooling system
Window Unit(s), Electric
Building Details
Year built
1938
Roof type
Other
Listing Agency:
HOMESMART REALTY GROUP - SWEET HOME
Listed By:
KARLA HOGAN · License #980900018
(541) 409-0547
Added: Aug 27
Changed: Oct 2
Last Checked: Oct 5 at 4:06AM
MLS# 845022
Copyright © 2026 Willamette Valley Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This medical office property at 1235/1245 Main St in Sweet Home contains 2,156 square feet on a 0.07-acre lot. The building dates to 1938 and has two separate tax accounts. Interior areas include reception, a waiting room, private offices, and work space. Heating is electric and zoned; cooling is provided by electric window units.
The property has Main Street frontage and alley access, with Festival Street and 13th Ave nearby. It is zoned C1.
The property has Main Street frontage and alley access, with Festival Street and 13th Ave nearby. It is zoned C1.
Key Highlights
- 2,156‑square‑foot medical office on a 0.07‑acre lot
- Two separate tax accounts
- Main Street frontage with alley access
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
$12,482
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
6.24%
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%
$249,640
$249.6K
Cap Rate 7%
$178,314
$178.3K
Cap Rate 9%
$138,689
$138.7K
Market Conditions
NOI Build-Up for 2,156 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
$22.0K $10.20/SF
− Vacancy
−$1.2K −$0.55/SF
EGI
$20.8K $9.65/SF
− OpEx
−$8.3K −$3.86/SF
NOI
$12.5K $5.79/SF
Area
Linn County, OR
Vacancy
5.40%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
40.00%
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%
$249,640
Cap Rate 7%
$178,314
Cap Rate 9%
$138,689
Alternative Uses
Best Use
Office B
$562.6K
$492.3K – $656.4K
NOI $39,382 @ 7.0% cap · market cap 19.70%
Second Best
Healthcare Medical
$178.3K
$156.0K – $208.0K
NOI $12,482 @ 7.0% cap · market cap 6.24%
Theoretical Best
Office A
$628.1K
$549.6K – $732.8K
NOI $43,966 @ 7.0% cap · market cap 21.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
392
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97386, OR
14,611
Population
6,339
Households
2.3
Avg Household Size
44
Median Age
11%
College-Educated
87%
High-School Grad
125.9 sq mi
ZIP Area
116
Density / Sq Mi
$68,116
Median Household Income
$37,125
Median Earnings
$1,141
Median Rent
$302,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Its interior has reception and waiting areas, private offices, and dedicated work space.
Where is this medical office space located?
The property is located at 1235/1245 Main St Sweet Home, OR.
What is the asking price?
The asking price for this property is $199,900.
What are key features of this property?
This property features: 2,156‑square‑foot medical office on a 0.07‑acre lot; Two separate tax accounts; Main Street frontage with alley access
