Eliot Tower Retail Condominium
For Sale
$1,099,000
1237 Southwest 10th Avenue, Portland, OR 97205
Prime retail space with long-term tenant in downtown Portland.
Property Size4,789 SF
Price / SF$229.48
Days on Market150
Property Features for 1237 Southwest 10th Avenue
General Information
Standard status
Active
Size
4,789 SF
Property subtype
Retail
Listing Agency:
CBRE | Portland
(503) 221-4850
Listed By:
Megan Wallachy · License #OR Lic. #200603442
(503) 221-4850
Source:
Cbre
Added: Mar 25
Changed: Aug 10
Last Checked: Aug 20 at 11:05AM
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 CBRE | Portland
Investment Insights
Based on property information with market context.
Located in the heart of Portland’s Central Business District, the Eliot Tower condominium unit R2 offers approximately 4,789 square feet of prime retail space. The Eliot Tower is an 18-story modern condominium high-rise constructed in 2006 that integrates retail and residential uses, featuring street-level retail complemented by 223 condominium homes above. The property is LEED certified. The property is well situated in the middle of the CBD next door to Safeway and less than half a mile from the 44 acre Portland State University Campus teaching more than 21,000 students. The property is located just west of the city park blocks on Jefferson Street and sandwiched between SW 10th and SW 11th Avenue with close proximity to Interstate 405 and Highway 26 Interchange. The property houses the Portland Art Museum’s rental sales gallery, with a remaining vacancy of 1,601 square feet. Portland Art Museum and Canoe operate under NNN leases, while Harris & Tailor operates under a gross lease on a month to month term. The Portland Art Museum benefits from tax-exempt status for its leased space. The Eliot Tower enjoys exceptional walkability with a score of 99/100, a transit score of 95/100, and a bike score of 93/100. Portland Art Museum is currently undergoing an $11M Campus Transformation that will include an entrance on 10th street from their original building located directly across the street from the subject property. This entrance will provide seamless connection between the two buildings, encourage increased foot traffic to The Eliot, and secure the need to renew the Lease for Portland Art Museum in this location.
Key Highlights
- Prime Retail Space with Income: Approximately 4,789 sq ft leased to Portland Art Museum providing stable income, plus 1,601 sq ft of vacancy for owner‑user.
- Strategic Downtown Location: Exceptional walkability, transit, and bike scores, near Safeway and Portland State University.
- NNN Leases: Existing NNN leases with Portland Art Museum and Canoe ensure reimbursement of building expenses.
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
$64,652
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
5.88%
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%
$1,293,040
$1.3M
Cap Rate 7%
$923,600
$923.6K
Cap Rate 9%
$718,356
$718.4K
Market Conditions
NOI Build-Up for 4,789 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
$114.9K $24.00/SF
− Vacancy
−$11.5K −$2.40/SF
EGI
$103.4K $21.60/SF
− OpEx
−$38.8K −$8.10/SF
NOI
$64.7K $13.50/SF
Area
Portland, OR
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,293,040
Cap Rate 7%
$923,600
Cap Rate 9%
$718,356
Alternative Uses
Best Use
Mixed Use
$923.6K
$808.2K – $1.08M
NOI $64,652 @ 7.0% cap · market cap 5.88%
Second Best
Retail
$797.4K
$697.7K – $930.3K
NOI $55,816 @ 7.0% cap · market cap 5.08%
Theoretical Best
Office A
$1.34M
$1.18M – $1.57M
NOI $94,141 @ 7.0% cap · market cap 8.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
12,785
Businesses Nearby
Explore this area
Business Placement
Demographics for 97205, OR
8,593
Population
6,727
Households
1.3
Avg Household Size
39
Median Age
61%
College-Educated
97%
High-School Grad
0.9 sq mi
ZIP Area
9,548
Density / Sq Mi
$58,943
Median Household Income
$51,002
Median Earnings
$1,381
Median Rent
$693,600
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?
Retail space - Prime retail space with long-term tenant in downtown Portland.
Where is this retail space located?
The property is located at 1237 Southwest 10th Avenue Portland, OR.
What is the asking price?
The asking price for this property is $1,099,000.
What are key features of this property?
This property features: Prime Retail Space with Income: Approximately 4,789 sq ft leased to Portland Art Museum providing stable income, plus 1,601 sq ft of vacancy for owner‑user.; Strategic Downtown Location: Exceptional walkability, transit, and bike scores, near Safeway and Portland State University.; NNN Leases: Existing NNN leases with Portland Art Museum and Canoe ensure reimbursement of building expenses.
