Two-Story Office
For Sale
$995,000
835 Forest Avenue, Portland, ME 04103
Portland, ME
Property Size3,360 SF
Price / SF$296.13
Days on Market44
Property Features for 835 Forest Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Standard status
Active
Size
3,360 SF
Amenities
underground lawn sprinkler system
Building Details
Year built
1970
Listing Agency:
Auburn, Maine · Better Homes and Gardens Real Estate
(207) 782-8311
Listed By:
Renee Roy
(207) 782-8311
Added: Jul 14
Changed: Aug 24
Last Checked: Aug 26 at 11:06AM
MLS# 1671717
Copyright © 2026 Better Homes and Gardens-The Masiello Group. 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 3,360-square-foot office property was built in 1970 and arranged across two stories. The wood-frame building features brick facing on the front and sides, with vinyl siding at the rear. Interior improvements include five private offices, two full bathrooms, and two half bathrooms, creating a practical configuration for professional occupants. A newer underground lawn sprinkler system supports the grounds.
The property fronts Forest Avenue and sits directly across from 29-acre Baxter Park, which includes walking trails. On-site parking is provided in a paved lot accommodating 21+ vehicles, with additional 24-hour street parking available on both sides of Forest Avenue. Entry is available from the avenue-facing front door and through the rear parking area.
The property fronts Forest Avenue and sits directly across from 29-acre Baxter Park, which includes walking trails. On-site parking is provided in a paved lot accommodating 21+ vehicles, with additional 24-hour street parking available on both sides of Forest Avenue. Entry is available from the avenue-facing front door and through the rear parking area.
Key Highlights
- 3,360‑square‑foot, two‑story office building constructed in 1970
- Five private offices, two full bathrooms, and two half bathrooms
- Paved parking lot accommodates 21+ vehicles
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
$48,102
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
4.83%
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%
$962,040
$962.0K
Cap Rate 7%
$687,171
$687.2K
Cap Rate 9%
$534,467
$534.5K
Market Conditions
NOI Build-Up for 3,360 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
$73.4K $21.84/SF
− Vacancy
−$9.2K −$2.75/SF
EGI
$64.1K $19.09/SF
− OpEx
−$16.0K −$4.77/SF
NOI
$48.1K $14.32/SF
Area
Cumberland County, ME
Vacancy
12.60%
Lease Rate
$21.84 /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%
$962,040
Cap Rate 7%
$687,171
Cap Rate 9%
$534,467
Alternative Uses
Best Use
Office B
$687.2K
$601.3K – $801.7K
NOI $48,102 @ 7.0% cap · market cap 4.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$923.5K
$808.1K – $1.08M
NOI $64,645 @ 7.0% cap · market cap 6.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
865
Businesses Nearby
Explore this area
Business Placement
Demographics for 04103, ME
31,185
Population
14,336
Households
2.2
Avg Household Size
40
Median Age
58%
College-Educated
97%
High-School Grad
10.2 sq mi
ZIP Area
3,057
Density / Sq Mi
$90,682
Median Household Income
$48,640
Median Earnings
$1,571
Median Rent
$421,800
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Flexible professional layout with private offices, multiple restrooms, paved on-site parking, and front and rear access.
Where is this office building located?
The property is located at 835 Forest Avenue Portland, ME.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 3,360‑square‑foot, two‑story office building constructed in 1970; Five private offices, two full bathrooms, and two half bathrooms; Paved parking lot accommodates 21+ vehicles
