High-Traffic Commercial Building For
For Sale
$1,000,000
5409 SE FRANCIS, Portland, OR 97206
Commercial building with high visibility, flexible zoning, and ample parking.
Property Size2,786 SF
Lot Size0.18 Acres
Price / SF$358.94
Days on Market761
Property Features for 5409 SE FRANCIS
General Information
Standard status
Active
Size
2,786 SF
Lot size
0.18 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$6,169
Amenities
Built Up Roof
Flat Roof
Forced Air 90 Heating
On Site
Secured
Building Details
Year Built
1982
Listing Agency:
PREMIERE PROPERTY GROUP, LLC
(503) 670-9000
Listed By:
PATTI SHMILENKO · License #990100012
Source:
Corcoran
Added: Jul 13, 2024
Changed: Aug 8
Last Checked: Aug 8 at 1:35PM
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 building is located at the corner of SE Foster and SE Francis, offering a high-traffic location. The concrete block building is zoned CM-2, allowing for a variety of uses, subject to buyer verification. The property features four 10-foot roll-up doors, office space, and a bathroom with a shower. Equipment is negotiable. The property includes a fenced yard with space for 12 or more parking spaces. The interior features 14-foot ceilings. The roof is a torch down roof. The property size is 2786 square feet. Underground tanks have been removed, and a No Further Action letter is available.
Key Highlights
- High‑traffic corner location at SE Foster & SE Francis
- CM‑2 zoning allowing a myriad of uses (buyer to verify)
- Features four 10' roll‑up doors
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
$36,064
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
3.61%
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%
$721,280
$721.3K
Cap Rate 7%
$515,200
$515.2K
Cap Rate 9%
$400,711
$400.7K
Market Conditions
NOI Build-Up for 2,786 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
$63.5K $22.80/SF
− Vacancy
−$15.4K −$5.54/SF
EGI
$48.1K $17.26/SF
− OpEx
−$12.0K −$4.31/SF
NOI
$36.1K $12.94/SF
Area
ZIP 97206
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%
$721,280
Cap Rate 7%
$515,200
Cap Rate 9%
$400,711
Alternative Uses
Best Use
Office B
$515.2K
$450.8K – $601.1K
NOI $36,064 @ 7.0% cap · market cap 3.61%
Second Best
Retail
$458.9K
$401.5K – $535.3K
NOI $32,120 @ 7.0% cap · market cap 3.21%
Theoretical Best
Office A
$782.4K
$684.6K – $912.8K
NOI $54,766 @ 7.0% cap · market cap 5.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
936
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97206, OR
51,072
Population
22,348
Households
2.3
Avg Household Size
38
Median Age
49%
College-Educated
94%
High-School Grad
6.5 sq mi
ZIP Area
7,857
Density / Sq Mi
$94,233
Median Household Income
$54,254
Median Earnings
$1,693
Median Rent
$480,500
Median Home Value
Market
Vacancy Rate% for Office in Portland, OR
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Commercial building with high visibility, flexible zoning, and ample parking.
Where is this flex space located?
The property is located at 5409 SE FRANCIS Portland, OR.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: High‑traffic corner location at SE Foster & SE Francis; CM‑2 zoning allowing a myriad of uses (buyer to verify); Features four 10' roll‑up doors
