Versatile Commercial Property with Development
For Sale
$1,300,000
3650 Mainline Dr Ne, Salem, OR 97301
Acre of level ground with existing structures and development potential.
Property Size7,246 SF
Lot Size1.00 Acre
Price / SF$179.41
Days on Market1122
Property Features for 3650 Mainline Dr Ne
General Information
Standard status
Active
Size
7,246 SF
Lot size
1.00 Acre
Taxes and HOA fees
Annual Taxes
$6,862
Listing Agency:
EXP REALTY, LLC
(503) 382-7860
Listed By:
SHANE SCHUSTER · License #201220302
(503) 382-7860
Source:
Exprealty
Added: Jul 27, 2023
Changed: Aug 21
Last Checked: Aug 21 at 10:57AM
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 EXP REALTY, LLC
Investment Insights
Based on property information with market context.
This commercial property features an acre of clear, level ground with a mix of heavily packed gravel and asphalt pavement, accommodating heavy truck traffic, storage, or serving as a base for further development. The site is conveniently located midway between Portland and Eugene off the MLK Parkway, a major artery linking Interstate 5 and the Oregon coast. Its visible side street location allows for safe truck access to major routes and parallels a railroad spur line to a switch yard, offering expanded transportation options. Existing structures on the property can be used for industrial purposes or leased shop space, complementing the open space's potential. Adjacent to one of the paved portions is a truck washing station with an environmentally friendly oil and water separator, along with a partitioned-off center island previously used for above-ground fueling. The main shop includes a secure tool room, office space, and separate bathrooms. Equipped with an automotive lift and direct view from the main entrance, it is suitable for retail repair or truck maintenance. Access to 3-phase power supports heavy industrial needs or a fabrication shop. The main office is separated by a brick courtyard matching its front entrance and parking area. The rear structure features a high ceiling allowing truck and equipment access. Originally configured as two separate shops, the main shop includes a bathroom, office space, and upstairs storage and separate room. The secondary shop has been divided into a third shop space. An adjacent older mobile home has been used as parts storage. All buildings are in usable shape, but should be considered in variable states of disrepair. Level 1 and 2 environmental studies have been performed, with no results requiring any further level 3 action.
Key Highlights
- Acre of clear, level ground with gravel and asphalt pavement.
- Convenient central location with easy access to Interstate 5.
- Favorable environmental studies completed, ensuring readiness for development.
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
$87,191
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
6.71%
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%
$1,743,820
$1.7M
Cap Rate 7%
$1,245,586
$1.2M
Cap Rate 9%
$968,789
$968.8K
Market Conditions
NOI Build-Up for 7,246 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
$130.4K $18.00/SF
− Vacancy
−$5.9K −$0.81/SF
EGI
$124.6K $17.19/SF
− OpEx
−$37.4K −$5.16/SF
NOI
$87.2K $12.03/SF
Area
Salem, OR
Vacancy
4.50%
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%
$1,743,820
Cap Rate 7%
$1,245,586
Cap Rate 9%
$968,789
Alternative Uses
Best Use
Retail
$1.25M
$1.09M – $1.45M
NOI $87,191 @ 7.0% cap · market cap 6.71%
Second Best
Flex RnD
$1.06M
$929.7K – $1.24M
NOI $74,379 @ 7.0% cap · market cap 5.72%
Theoretical Best
Office A
$1.92M
$1.68M – $2.24M
NOI $134,671 @ 7.0% cap · market cap 10.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
465
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 Industrial in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Mayrene's Catering — 2025 Carleton Way NE, Salem, OR 97301
Frequently Asked Questions
What type of property is this?
Flex space - Acre of level ground with existing structures and development potential.
Where is this flex space located?
The property is located at 3650 Mainline Dr Ne Salem, OR.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Acre of clear, level ground with gravel and asphalt pavement.; Convenient central location with easy access to Interstate 5.; Favorable environmental studies completed, ensuring readiness for development.
