Remodeled Flex Space with
For Sale
$750,000
3640 S Santiam. Hwy, Lebanon, OR 97355
Commercial, Lebanon, OR
Property Size3,330 SF
Lot Size0.46 Acres
Price / SF$225.23
Days on Market317
Property Features for 3640 S Santiam. Hwy
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
UGM 1
View
Territorial
Standard status
Active
Size
3,330 SF
Lot size
0.46 Acres
Taxes and HOA fees
Tax Annual Amount
3243
Utilities
Heating system
Floor Furnace, Natural Gas, Central
Water source
Well
Amenities
conference room
bathrooms
kitchenettes
Building Details
Year built
1956
Listing Agency:
KELLER WILLIAMS REALTY MID-WILLAMETTE - GILLOTT TEAM
(541) 738-7770
Listed By:
LAURA GILLOTT · License #920300248
(541) 990-7785
Added: Oct 14, 2025
Changed: Aug 19
Last Checked: Aug 26 at 5:06AM
MLS# 834488
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 3,330-square-foot flex property, originally built in 1956, has been remodeled into a multi-use commercial facility. The office area includes six suites, a conference room, two bathrooms, and two kitchenettes. A 36' x 36' showroom can support retail, events, or additional workspace. The property also includes a 20 x 75 shop with a concrete floor and loft, along with a 20 x 40 machine shed.
Comprising two tax lots, the site provides access from S Santiam Hwy and Cascade Drive. A fenced yard and parking area add secured outdoor functionality. The property is zoned UGM 1, served by a well, and equipped with floor-furnace, natural-gas, and central heating. Office furnishings are negotiable.
Comprising two tax lots, the site provides access from S Santiam Hwy and Cascade Drive. A fenced yard and parking area add secured outdoor functionality. The property is zoned UGM 1, served by a well, and equipped with floor-furnace, natural-gas, and central heating. Office furnishings are negotiable.
Key Highlights
- 3,330‑square‑foot remodeled flex property with six office suites
- 36' x 36' showroom suitable for retail, events, or additional office space
- 20 x 75 shop with concrete floor and loft
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
$60,827
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
8.11%
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%
$1,216,540
$1.2M
Cap Rate 7%
$868,957
$869.0K
Cap Rate 9%
$675,856
$675.9K
Market Conditions
NOI Build-Up for 3,330 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
$94.3K $28.32/SF
− Vacancy
−$13.2K −$3.96/SF
EGI
$81.1K $24.36/SF
− OpEx
−$20.3K −$6.09/SF
NOI
$60.8K $18.27/SF
Area
Linn County, OR
Vacancy
14.00%
Lease Rate
$28.32 /SF/Yr
Expense Ratio
25.00%
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%
$1,216,540
Cap Rate 7%
$868,957
Cap Rate 9%
$675,856
Alternative Uses
Best Use
Office B
$869.0K
$760.3K – $1.01M
NOI $60,827 @ 7.0% cap · market cap 8.11%
Second Best
Industrial
$480.1K
$420.1K – $560.1K
NOI $33,605 @ 7.0% cap · market cap 4.48%
Theoretical Best
Office A
$970.1K
$848.8K – $1.13M
NOI $67,906 @ 7.0% cap · market cap 9.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
6
Office units
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97355, OR
32,413
Population
13,623
Households
2.4
Avg Household Size
41
Median Age
18%
College-Educated
91%
High-School Grad
214.3 sq mi
ZIP Area
151
Density / Sq Mi
$64,307
Median Household Income
$39,934
Median Earnings
$1,267
Median Rent
$332,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Updated commercial property offers office, showroom, workshop, storage, and fenced outdoor space.
Where is this flex space located?
The property is located at 3640 S Santiam. Hwy Lebanon, OR.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: 3,330‑square‑foot remodeled flex property with six office suites; 36' x 36' showroom suitable for retail, events, or additional office space; 20 x 75 shop with concrete floor and loft
