Listing Agency: Berkshire Hathaway HomeServices Elite Real Estate (South County) Show Phone

Listed By: Allison Greetham Show Phone

Source: Exprealty

Added: Jun 23 Changed: Aug 14 Last Checked: Aug 16 at 9:16AM

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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 Berkshire Hathaway HomeServices Elite Real Estate (South County)

Investment Insights

Based on property information with market context.

This 7309 Sq ft main-floor suite combines retail and office functionality within South Valley Plaza. The existing layout includes salon-related spa rooms, additional office areas, and an extra-large event or training room. The space has also previously operated as an ATV dealership, supporting a range of established commercial configurations.

The property fronts SR 198 in Salem, Utah, with multiple access points serving the plaza. An owner-run HOA is in place for the center. The suite can accommodate a combination of customer-facing, administrative, and group-oriented functions within one commercial footprint.

Key Highlights

• 7309 Sq ft main‑floor suite
• Located in South Valley Plaza on SR 198
• Multiple access points serve the property

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

$122,339

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

8.59%

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%

$2,446,780 $2.4M

Cap Rate 7%

$1,747,700 $1.7M

Cap Rate 9%

$1,359,322 $1.4M

Market Conditions

NOI Build-Up for 7,309 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

$182.4K $24.96/SF

− Vacancy

−$7.7K −$1.05/SF

EGI

$174.8K $23.91/SF

− OpEx

−$52.4K −$7.17/SF

NOI

$122.3K $16.74/SF

Area

Utah County, UT

Vacancy

4.20%

Lease Rate

$24.96 /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%

$2,446,780

Cap Rate 7%

$1,747,700

Cap Rate 9%

$1,359,322

Alternative Uses

Best Use

Retail

$1.75M

$1.53M – $2.04M (±1% cap)

NOI $122,339 @ 7.0% cap · market cap 8.59%

Second Best

Office B

$1.47M

$1.28M – $1.71M (±1% cap)

NOI $102,618 @ 7.0% cap · market cap 7.20%

Theoretical Best

Office A

$2.01M

$1.76M – $2.35M (±1% cap)

NOI $141,034 @ 7.0% cap · market cap 9.90%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Retail space

Suggested Use

Top Pick Law Firm Nail Salon Real Estate Agency Hair Salon Big Box & Wholesale Store (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

335

Businesses Nearby

Explore this area Business Placement

Demographics for 84653, UT

11,103

Population

3,235

Households

3.4

Avg Household Size

30

Median Age

41%

College-Educated

98%

High-School Grad

16.1 sq mi

ZIP Area

690

Density / Sq Mi

$111,420

Median Household Income

$48,182

Median Earnings

$1,581

Median Rent

$569,300

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Retail space - Main-floor commercial suite includes offices, spa rooms, and a dedicated event or training area.

Where is this retail space located?

The property is located at 109-523 N State Road 198 Salem, UT.

What is the asking price?

The asking price for this property is $1,425,000.

What are key features of this property?

This property features: 7309 Sq ft main‑floor suite; Located in South Valley Plaza on SR 198; Multiple access points serve the property