Home-to-Office Conversion with
For Sale
Contact for pricing
1230 Fairview Ave SE, Salem, OR 97302
Office building with parking lot on sprawling half-acre lot.
Property Size2,130 SF
Lot Size0.50 Acres
Price / SF$239.44
Days on Market153
Property Features for 1230 Fairview Ave SE
General Information
Standard status
Active
Size
2,130 SF
Class
C
Total Parking Spaces
7
Lot size
0.50 Acres
Property subtype
Office
Zoning
CO
Building Details
Year Built
1941
Year Renovated
2001
Stories
2
Listing Agency:
Tradition Real Estate Partners
(503) 559-9279
Listed By:
AJ Nash · License #OR 201208908
Source:
Crexi
Added: Mar 21
Changed: Aug 14
Last Checked: Aug 19 at 7:34PM
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 Tradition Real Estate Partners
Investment Insights
Based on property information with market context.
This home-to-office conversion is situated on a sprawling half-acre lot with a 7-car parking lot. Located in South Salem between Pringle and 12th, the property is suitable for a variety of small businesses. The first floor features an entry reception area, kitchen, conference room, private office, and flex space. The second floor includes a private office and open flex space. The basement offers office space with a separate entry, along with dry storage and a mechanical room. The property includes an ADA paver entry and an attached 1-car garage. Remodeled in 2001/2002, the property has been well cared for and maintained. It also features a new HVAC system and A/C. The property is zoned CO and has a total size of 2130 square feet.
Key Highlights
- Potential seller carried financing (possible $200k @ 6%)
- Zoned CO (commercial office)
- Home‑to‑office conversion with flexible space
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
$29,330
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
5.75%
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%
$586,600
$586.6K
Cap Rate 7%
$419,000
$419.0K
Cap Rate 9%
$325,889
$325.9K
Market Conditions
NOI Build-Up for 2,130 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
$46.0K $21.60/SF
− Vacancy
−$6.9K −$3.24/SF
EGI
$39.1K $18.36/SF
− OpEx
−$9.8K −$4.59/SF
NOI
$29.3K $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%
$586,600
Cap Rate 7%
$419,000
Cap Rate 9%
$325,889
Alternative Uses
Best Use
Office B
$419.0K
$366.6K – $488.8K
NOI $29,330 @ 7.0% cap · market cap 5.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$565.5K
$494.8K – $659.8K
NOI $39,587 @ 7.0% cap · market cap 7.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
783
Businesses Nearby
Explore this area
Business Placement
Demographics for 97302, OR
39,776
Population
17,888
Households
2.2
Avg Household Size
41
Median Age
43%
College-Educated
95%
High-School Grad
23.5 sq mi
ZIP Area
1,693
Density / Sq Mi
$83,697
Median Household Income
$44,623
Median Earnings
$1,230
Median Rent
$415,200
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 units - Office building with parking lot on sprawling half-acre lot.
Where is this office units located?
The property is located at 1230 Fairview Ave SE Salem, OR.
What is the asking price?
The asking price for this property is $510,000.
What are key features of this property?
This property features: Potential seller carried financing (possible $200k @ 6%); Zoned CO (commercial office); Home‑to‑office conversion with flexible space
