Downtown Office
For Sale
$525,000
725 SW 8th Street, Redmond, OR 97756
Commercial Sale, Redmond, OR
Property Size1,080 SF
Lot Size0.12 Acres
Price / SF$486.11
Days on Market159
Property Features for 725 SW 8th Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
C2
Parking features
Assigned, Parking Lot, Alley, On Street
Window features
Aluminum Frames, Double Pane Windows, Vinyl Frames
Patio and Porch features
Porch, Deck
Interior features
Tile Counters
Exterior features
Courtyard
Subdivision
Townsite Of Redmond
Lot features
Landscaped, Sprinkler Timer(s), Sprinklers In Front, Sprinklers In Rear
Directions
From SW Glacier turn left into the alley way just West of SW 8th St,. Property is the third on the left.
Standard status
Active
APN
123503
Size
1,080 SF
Lot size
0.12 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
1970
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating), Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1929
Floors in Building
1
Number of units
1
Flooring type
Laminate
Building materials
Frame
Roof type
Composition
Listing Agency:
Desert Sky Real Estate LLC
(541) 504-9792
Listed By:
Cat Zwicker
(541) 410-9592
Added: Apr 6
Changed: Sep 8
Last Checked: Sep 11 at 10:06PM
MLS# 220218680
Copyright © 2026 Oregon Data Share. 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 1,080-square-foot office unit at 725 SW 8th Street was built in 1929 and includes laminate flooring, tile counters, central air, and forced-air electric heating. The property also features a courtyard, porch, deck, and a frame construction with a composition roof. Public water and sewer serve the site.
The 0.12-acre property is positioned across from the American Legion near Redmond’s core business district. Parking options include assigned spaces, an alley, a parking lot, and on-street parking. The interior layout is identified as suitable for office, service, or light commercial use, with access features supporting clients and staff.
The 0.12-acre property is positioned across from the American Legion near Redmond’s core business district. Parking options include assigned spaces, an alley, a parking lot, and on-street parking. The interior layout is identified as suitable for office, service, or light commercial use, with access features supporting clients and staff.
Key Highlights
- 1,080 SF office unit on a 0.12‑acre property
- Built in 1929 with frame construction and composition roof
- Central air and forced‑air electric heating
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
$15,509
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
2.95%
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%
$310,180
$310.2K
Cap Rate 7%
$221,557
$221.6K
Cap Rate 9%
$172,322
$172.3K
Market Conditions
NOI Build-Up for 1,080 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 $20.40/SF
− Vacancy
−$1.4K −$1.25/SF
EGI
$20.7K $19.15/SF
− OpEx
−$5.2K −$4.79/SF
NOI
$15.5K $14.36/SF
Area
Deschutes County, OR
Vacancy
6.14%
Lease Rate
$20.40 /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%
$310,180
Cap Rate 7%
$221,557
Cap Rate 9%
$172,322
Alternative Uses
Best Use
Office B
$221.6K
$193.9K – $258.5K
NOI $15,509 @ 7.0% cap · market cap 2.95%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$371.7K
$325.2K – $433.6K
NOI $26,018 @ 7.0% cap · market cap 4.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,609
Businesses Nearby
Explore this area
Business Placement
Demographics for 97756, OR
42,168
Population
18,335
Households
2.3
Avg Household Size
40
Median Age
32%
College-Educated
92%
High-School Grad
126.3 sq mi
ZIP Area
334
Density / Sq Mi
$84,067
Median Household Income
$41,909
Median Earnings
$1,473
Median Rent
$469,000
Median Home Value
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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?
Office units - Functional commercial space with courtyard access, assigned parking, and connectivity to the central business district.
Where is this office units located?
The property is located at 725 SW 8th Street Redmond, OR.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: 1,080 SF office unit on a 0.12‑acre property; Built in 1929 with frame construction and composition roof; Central air and forced‑air electric heating
