Remodeled Storefront with Attached
For Sale
$200,000
Pending
15231 SE Division, Portland, OR 97236
Remodeled storefront with attached house and large backyard.
Property Size1,300 SF
Days on Market866
Property Features for 15231 SE Division
General Information
Standard status
Pending
Size
1,300 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$2,000
Building Details
Year Built
1958
Listing Agency:
EQUITY OREGON REAL ESTATE
(503) 780-3239
Listed By:
SOO PAIK
Source:
Corcoran
Added: Apr 9, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:43AM
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 EQUITY OREGON REAL ESTATE
Investment Insights
Based on property information with market context.
The property features a remodeled storefront with an attached three-bedroom house. The house is connected to the back of the store. The property includes a large backyard. The combined rent for both the storefront and the house is less than $4,000 per month, including NNN fees. The daily sales for the storefront are approximately $1,600, with an average net income of $10,000 per month. The property size is 1,300 square feet.
Key Highlights
- Established smoke shop business with strong daily sales (approx. $1,600/day) and net monthly income ($10,000/month).
- Includes a remodeled 3BR house attached to the back of the store for convenient living and business operation.
- Low total rent (less than $4,000/month including NNN fees).
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
$15,151
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
7.58%
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%
$303,020
$303.0K
Cap Rate 7%
$216,443
$216.4K
Cap Rate 9%
$168,344
$168.3K
Market Conditions
NOI Build-Up for 1,300 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
$23.4K $18.00/SF
− Vacancy
−$1.8K −$1.35/SF
EGI
$21.6K $16.65/SF
− OpEx
−$6.5K −$5.00/SF
NOI
$15.2K $11.66/SF
Area
Portland, OR
Vacancy
7.50%
Lease Rate
$18.00 /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%
$303,020
Cap Rate 7%
$216,443
Cap Rate 9%
$168,344
Alternative Uses
Best Use
Retail
$216.4K
$189.4K – $252.5K
NOI $15,151 @ 7.0% cap · market cap 7.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$365.1K
$319.4K – $425.9K
NOI $25,555 @ 7.0% cap · market cap 12.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
472
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97236, OR
40,193
Population
13,736
Households
2.9
Avg Household Size
36
Median Age
21%
College-Educated
81%
High-School Grad
7.7 sq mi
ZIP Area
5,220
Density / Sq Mi
$68,582
Median Household Income
$38,131
Median Earnings
$1,436
Median Rent
$414,400
Median Home Value
Market
Vacancy Rate% for Retail in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Remodeled storefront with attached house and large backyard.
Where is this storefront property located?
The property is located at 15231 SE Division Portland, OR.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: Established smoke shop business with strong daily sales (approx. $1,600/day) and net monthly income ($10,000/month).; Includes a remodeled 3BR house attached to the back of the store for convenient living and business operation.; Low total rent (less than $4,000/month including NNN fees).
