Charming Converted Office/Medical
For Sale
$689,900
1320 Chemeketa St NE, Salem, OR 97301
1928 building near Oregon State Capitol and Willamette University.
Property Size3,281 SF
Price / SF$210.27
Days on Market206
Property Features for 1320 Chemeketa St NE
General Information
Standard status
Active
Size
3,281 SF
Class
B
Property subtype
Office
Building Details
Building Size
3,281 SF
Year Built
1923
Listing Agency:
Capacity Commercial Group
(503) 559-7990
Listed By:
Curt Arthur, SIOR · License #201230204
(503) 559-7990
Source:
Corfac
Added: Jan 26
Changed: Aug 8
Last Checked: Aug 8 at 1:27PM
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 Capacity Commercial Group
Investment Insights
Based on property information with market context.
This charming building, originally constructed in 1928, has been converted into an office/medical space, blending its historical appeal with modern infrastructure. Located just three blocks from Willamette University and the Oregon State Capitol, the property was previously a successful dental practice and is suitable for medical, dental, or professional office use. The existing plumbing and vacuum infrastructure support dental operations, but the building could also serve as a law office, accounting firm, or state association headquarters. Situated on the eastern edge of Salem's Central Business District, the property is near the Oregon State Capitol, Capitol Mall, and Salem Hospital. The zoning is RS with conditional use approval for office/medical purposes. On-site parking is available, along with free 90-minute street parking. A garage provides additional storage space.
Key Highlights
- Ideal location: Close proximity to Willamette University, Oregon State Capitol, and Salem Hospital.
- Zoned RS with conditional use approval for office/medical.
- Suitable for medical/dental or professional office use.
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
$45,179
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
6.55%
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%
$903,580
$903.6K
Cap Rate 7%
$645,414
$645.4K
Cap Rate 9%
$501,989
$502.0K
Market Conditions
NOI Build-Up for 3,281 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
$70.9K $21.60/SF
− Vacancy
−$10.6K −$3.24/SF
EGI
$60.2K $18.36/SF
− OpEx
−$15.1K −$4.59/SF
NOI
$45.2K $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%
$903,580
Cap Rate 7%
$645,414
Cap Rate 9%
$501,989
Alternative Uses
Best Use
Office B
$645.4K
$564.7K – $753.0K
NOI $45,179 @ 7.0% cap · market cap 6.55%
Second Best
Healthcare Medical
$627.7K
$549.2K – $732.3K
NOI $43,939 @ 7.0% cap · market cap 6.37%
Theoretical Best
Office A
$871.1K
$762.2K – $1.02M
NOI $60,979 @ 7.0% cap · market cap 8.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,925
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97301, OR
56,393
Population
21,419
Households
2.6
Avg Household Size
34
Median Age
18%
College-Educated
81%
High-School Grad
11.3 sq mi
ZIP Area
4,991
Density / Sq Mi
$57,497
Median Household Income
$33,220
Median Earnings
$1,197
Median Rent
$310,800
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 - 1928 building near Oregon State Capitol and Willamette University.
Where is this medical office space located?
The property is located at 1320 Chemeketa St NE Salem, OR.
What is the asking price?
The asking price for this property is $689,900.
What are key features of this property?
This property features: Ideal location: Close proximity to Willamette University, Oregon State Capitol, and Salem Hospital.; Zoned RS with conditional use approval for office/medical.; Suitable for medical/dental or professional office use.
