Building Details

Year built 1950

Floors in Building 1

Building materials CementSiding, Stucco, WoodSiding

Roof type Flat, Built-Up, Membrane

Listing Agency: Windermere Realty Trust · Windermere Real Estate r***@windermere.com Show Phone

Listed By: Jody Conser · License #201237903 Show Phone

Added: Jun 12 Changed: Sep 16 Last Checked: Oct 4 at 4:06PM

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MLS# 237378879

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 4,122-square-foot retail property offers a remodeled interior with commercial equipment already in place, including coolers, deli cases, and ovens. The building also contains two half bathrooms, while the rear portion is currently used for storage. Cement siding, stucco, and wood siding contribute to the exterior construction, with forced-air heating and a membrane, built-up, and flat roof system. Constructed in 1950, the property is configured for continued retail use or conversion to another permitted commercial format.

Located at 599 Pacific Way in downtown Gearhart, the property carries C-1 zoning and sits on a 0.11-acre lot. The source information identifies grocery, deli, retail, and office uses as potential configurations, with the property positioned near beach, shopping, and school destinations. Its prior restaurant, bar, and deli configuration is documented in historical property photos, while the rear area is currently used for storage.

Key Highlights

• 4,122‑square‑foot retail property on a 0.11‑acre lot
• C‑1 zoning in downtown Gearhart
• Remodeled interior with coolers, deli cases, and ovens

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

$63,336

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

8.17%

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%

$1,266,720 $1.3M

Cap Rate 7%

$904,800 $904.8K

Cap Rate 9%

$703,733 $703.7K

Market Conditions

NOI Build-Up for 4,122 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

$133.1K $32.28/SF

− Vacancy

−$42.6K −$10.33/SF

EGI

$90.5K $21.95/SF

− OpEx

−$27.1K −$6.59/SF

NOI

$63.3K $15.37/SF

Area

Clatsop County, OR

Vacancy

32.00%

Lease Rate

$32.28 /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%

$1,266,720

Cap Rate 7%

$904,800

Cap Rate 9%

$703,733

Alternative Uses

Best Use

Retail

$904.8K

$791.7K – $1.06M (±1% cap)

NOI $63,336 @ 7.0% cap · market cap 8.17%

Second Best

Specialty Retail

$872.9K

$763.8K – $1.02M (±1% cap)

NOI $61,100 @ 7.0% cap · market cap 7.88%

Theoretical Best

Office A

$1.20M

$1.05M – $1.40M (±1% cap)

NOI $83,891 @ 7.0% cap · market cap 10.82%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Retail space

Suggested Use

Top Pick Parking Lot & Garage Electrical Service Grocery & Convenience Store Catering Service HVAC Service Barber Shop

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

292

Businesses Nearby

6k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 89% Home Improvements & Furnishings 11%

Dollar General Shops & Services

5,272 visits/mo 0.4 miles

Sherwin-Williams Paint Store Home Improvements & Furnishings

655 visits/mo 0.4 miles

Demographics for 97138, OR

11,248

Population

7,785

Households

1.4

Avg Household Size

48

Median Age

28%

College-Educated

92%

High-School Grad

146.0 sq mi

ZIP Area

77

Density / Sq Mi

$51,993

Median Household Income

$39,285

Median Earnings

$1,004

Median Rent

$433,200

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 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 retail space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Retail space - C-1 zoning and existing food-service fixtures accommodate grocery, deli, retail, or office uses.

Where is this retail space located?

The property is located at 599 PACIFIC Way Gearhart, OR.

What is the asking price?

The asking price for this property is $775,000.

What are key features of this property?

This property features: 4,122‑square‑foot retail property on a 0.11‑acre lot; C‑1 zoning in downtown Gearhart; Remodeled interior with coolers, deli cases, and ovens