Medical Office Building with Solar
For Sale
Contact for pricing
1025 2nd Street Northwest, Salem, OR 97304
2019-built medical office property with photovoltaic panels and a stabilized, 98% leased tenant roster.
Property Size9,822 SF
Price / SF$448.99
Days on Market70
Property Features for 1025 2nd Street Northwest
General Information
Standard status
Active
Size
9,822 SF
Total Parking Spaces
30
Property subtype
Office, Business for Sale
Zoning
CO - Commercial Office
Occupancy
98%
Lease Type
NNN
Net Operating Income
$308,430
Additional Details
Highway Access
Yes
Amenities
photovoltaic panels
Building Details
Year Built
2019
Buildings
1
Tenancy
Multi
Listing Agency:
Northmarq
Listed By:
Anthony Albrecht · License #OR 201239052
(503) 210-4062
Source:
Crexi
Added: Jun 30
Changed: Aug 22
Last Checked: Sep 1 at 12:20PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Northmarq
Investment Insights
Based on property information with market context.
Built in 2019 by CBTWO Architects, this medical office building features a top-of-the-line finish and photovoltaic (PV) panels intended to support lower energy consumption and improved tenant operational efficiency. The property is described as stabilized, with 98% leased occupancy and a weighted average lease term of 5.42 years as of 11/1/26. The anchor tenant represents 87% of the GLA and operates under a true NNN lease, and all tenants have annual rent increases.
The building is positioned along Oregon Route 22, connecting West Salem to downtown Salem, and is approximately a 5-minute drive from Salem Hospital. Salem Hospital’s recent expansion is noted at 200,000+ square feet with 150 ICU beds totaling $245M. The property is anchored by Therapy Partners Group, whose state-of-the-art buildout includes two professional-grade underwater treadmills and a full indoor track used by Division 1 collegiate programs and other major sports teams. Therapy Partners Group recently executed an early lease extension through September 2032.
The building is positioned along Oregon Route 22, connecting West Salem to downtown Salem, and is approximately a 5-minute drive from Salem Hospital. Salem Hospital’s recent expansion is noted at 200,000+ square feet with 150 ICU beds totaling $245M. The property is anchored by Therapy Partners Group, whose state-of-the-art buildout includes two professional-grade underwater treadmills and a full indoor track used by Division 1 collegiate programs and other major sports teams. Therapy Partners Group recently executed an early lease extension through September 2032.
Key Highlights
- 2019‑built medical office property constructed by CBTWO Architects with photovoltaic (PV) panels
- 98% leased with WALT of 5.42 years (as of 11/1/26) and annual rent increases for all tenants
- Anchor tenant accounts for 87% of GLA under a true NNN lease
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
$135,249
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
3.07%
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%
$2,704,980
$2.7M
Cap Rate 7%
$1,932,129
$1.9M
Cap Rate 9%
$1,502,767
$1.5M
Market Conditions
NOI Build-Up for 9,822 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
$212.2K $21.60/SF
− Vacancy
−$31.8K −$3.24/SF
EGI
$180.3K $18.36/SF
− OpEx
−$45.1K −$4.59/SF
NOI
$135.2K $13.77/SF
Area
Salem, OR
Vacancy
15.00%
Lease Rate
$21.60 /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%
$2,704,980
Cap Rate 7%
$1,932,129
Cap Rate 9%
$1,502,767
Alternative Uses
Best Use
Office B
$1.93M
$1.69M – $2.25M
NOI $135,249 @ 7.0% cap · market cap 3.07%
Second Best
Healthcare Medical
$1.88M
$1.64M – $2.19M
NOI $131,536 @ 7.0% cap · market cap 2.98%
Theoretical Best
Office A
$2.61M
$2.28M – $3.04M
NOI $182,548 @ 7.0% cap · market cap 4.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
782
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97304, OR
34,102
Population
14,547
Households
2.3
Avg Household Size
40
Median Age
39%
College-Educated
93%
High-School Grad
56.8 sq mi
ZIP Area
600
Density / Sq Mi
$91,731
Median Household Income
$53,370
Median Earnings
$1,441
Median Rent
$469,500
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?
Medical Office Space - 2019-built medical office property with photovoltaic panels and a stabilized, 98% leased tenant roster.
Where is this medical office space located?
The property is located at 1025 2nd Street Northwest Salem, OR.
What is the asking price?
The asking price for this property is $4,410,000.
What are key features of this property?
This property features: 2019‑built medical office property constructed by CBTWO Architects with photovoltaic (PV) panels; 98% leased with WALT of 5.42 years (as of 11/1/26) and annual rent increases for all tenants; Anchor tenant accounts for 87% of GLA under a true NNN lease
