Office Building with
For Sale
$850,000
10423 SE 23rd Ave, Milwaukie, OR 97222
Commercially zoned office property with multiple work areas, meeting rooms, kitchen facilities, and landscaped outdoor space.
Property Size3,200 SF
Lot Size0.33 Acres
Price / SF$266.29
Days on Market16
Property Features for 10423 SE 23rd Ave
General Information
Standard status
Active
Size
3,200 SF
Total Parking Spaces
7
Lot size
0.33 Acres
Additional Details
Cap Rate
5.17%
Amenities
full kitchen
eating nook
full bathroom
half bathroom
bonus common area great room
landscaped backyard
fenced
gazebo
storage shed
Building Details
Year Built
1949
Buildings
1
Building Size
3,200 SF
Listing Agency:
Premiere Property Group, LLC
(503) 670-9000
Listed By:
Kendel White · License #201236006
Source:
Wisser
Added: Aug 15
Changed: Aug 29
Last Checked: Aug 26 at 7:12AM
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 Premiere Property Group, LLC
Investment Insights
Based on property information with market context.
This commercial office building provides six private offices, two meeting rooms, and a generous shared area that can accommodate additional workstations. The main floor includes a full kitchen and eating nook, while the lower level has a half bathroom. Recent improvements include a new roof installed in 2022 and new gutters scheduled for 2026.
Set on a 1/3-acre treed and landscaped parcel, the property includes a fenced backyard with a large gazebo and storage shed. Seven off-street parking spaces support daily operations, while the setting near downtown Milwaukie places the building within short walking distance of the downtown area. The layout and existing amenities support office users including professional practices, service companies, consulting firms, and headquarters operations.
Set on a 1/3-acre treed and landscaped parcel, the property includes a fenced backyard with a large gazebo and storage shed. Seven off-street parking spaces support daily operations, while the setting near downtown Milwaukie places the building within short walking distance of the downtown area. The layout and existing amenities support office users including professional practices, service companies, consulting firms, and headquarters operations.
Key Highlights
- Six offices and two meeting rooms with a large shared work area
- Full kitchen and eating nook on the main floor
- Fenced landscaped backyard with large gazebo and storage shed
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
$41,319
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
4.86%
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%
$826,380
$826.4K
Cap Rate 7%
$590,271
$590.3K
Cap Rate 9%
$459,100
$459.1K
Market Conditions
NOI Build-Up for 3,192 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
$72.8K $22.80/SF
− Vacancy
−$17.7K −$5.54/SF
EGI
$55.1K $17.26/SF
− OpEx
−$13.8K −$4.31/SF
NOI
$41.3K $12.94/SF
Area
Clackamas County, OR
Vacancy
24.30%
Lease Rate
$22.80 /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%
$826,380
Cap Rate 7%
$590,271
Cap Rate 9%
$459,100
Alternative Uses
Best Use
Office B
$590.3K
$516.5K – $688.7K
NOI $41,319 @ 7.0% cap · market cap 4.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$861.6K
$753.9K – $1.01M
NOI $60,312 @ 7.0% cap · market cap 7.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,230
Businesses Nearby
Explore this area
Business Placement
Demographics for 97222, OR
36,316
Population
16,910
Households
2.1
Avg Household Size
41
Median Age
38%
College-Educated
95%
High-School Grad
8.6 sq mi
ZIP Area
4,223
Density / Sq Mi
$77,441
Median Household Income
$48,298
Median Earnings
$1,592
Median Rent
$465,100
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?
Office building - Commercially zoned office property with multiple work areas, meeting rooms, kitchen facilities, and landscaped outdoor space.
Where is this office building located?
The property is located at 10423 SE 23rd Ave Milwaukie, OR.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Six offices and two meeting rooms with a large shared work area; Full kitchen and eating nook on the main floor; Fenced landscaped backyard with large gazebo and storage shed
