Building Details

Year built 1920

Roof type Composition, Metal

Listing Agency: Real Broker o***@therealbrokerage.com Show Phone

Listed By: Troy DeVries · License #201236644 Show Phone

Added: Mar 25 Changed: Sep 4 Last Checked: Sep 5 at 4:06AM

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MLS# 712166226

Copyright © 2026 Regional Multiple Listing Services. 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 RC-zoned live-work property combines a 1,038-square-foot home-office building with a separate shop measuring approximately 1,250 square feet. The home-office portion includes three rooms, a full bathroom, laundry area, and living room that can function as a waiting area or lobby. The shop adds a large garage door, private office, bathroom, large room, and expansive work area.

Recent property improvements include a brand new septic tank, newer water heater, and a composition and metal roof replaced around 2019. Forced-air heating serves the property, which was built in 1920. The site also includes substantial parking space and is located at 16265 SE Highway 224 in Damascus, Oregon.

Key Highlights

• 1,038‑square‑foot home‑office building with three rooms, full bathroom, laundry area, and living room
• Approximately 1,250‑square‑foot shop with large garage door, office, bathroom, and work area
• RC zoning supports live‑work, retail, contractor space, financial institution, and office uses

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

$40,488

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

7.51%

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%

$809,760 $809.8K

Cap Rate 7%

$578,400 $578.4K

Cap Rate 9%

$449,867 $449.9K

Market Conditions

NOI Build-Up for 2,288 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

$67.8K $29.64/SF

− Vacancy

−$5.5K −$2.42/SF

EGI

$62.3K $27.22/SF

− OpEx

−$21.8K −$9.53/SF

NOI

$40.5K $17.70/SF

Area

Clackamas County, OR

Vacancy

8.15%

Lease Rate

$29.64 /SF/Yr

Expense Ratio

35.00%

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%

$809,760

Cap Rate 7%

$578,400

Cap Rate 9%

$449,867

Alternative Uses

Best Use

Flex RnD

$578.4K

$506.1K – $674.8K (±1% cap)

NOI $40,488 @ 7.0% cap · market cap 7.51%

Second Best

Mixed Use

$513.5K

$449.3K – $599.1K (±1% cap)

NOI $35,943 @ 7.0% cap · market cap 6.67%

Theoretical Best

Office A

$617.6K

$540.4K – $720.5K (±1% cap)

NOI $43,231 @ 7.0% cap · market cap 8.02%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Live-work space

Suggested Use

Top Pick (Bike/Boat/Book/etc) Store Tanning Salon Pet Grooming Service Supermarket Buffet Nursing Home

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

60

Businesses Nearby

Explore this area Business Placement

Demographics for 97089, OR

14,111

Population

4,991

Households

2.8

Avg Household Size

42

Median Age

32%

College-Educated

96%

High-School Grad

21.6 sq mi

ZIP Area

653

Density / Sq Mi

$114,516

Median Household Income

$51,284

Median Earnings

$2,642

Median Rent

$616,800

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this live-work space located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Live-work space - RC-zoned property combines a flexible home-office layout with a separate shop and on-site parking area.

Where is this live-work space located?

The property is located at 16265 SE HIGHWAY 224 Damascus, OR.

What is the asking price?

The asking price for this property is $539,000.

What are key features of this property?

This property features: 1,038‑square‑foot home‑office building with three rooms, full bathroom, laundry area, and living room; Approximately 1,250‑square‑foot shop with large garage door, office, bathroom, and work area; RC zoning supports live‑work, retail, contractor space, financial institution, and office uses