Tigard Multi-Tenant Office Investment
For Sale
Contact for pricing
Pending
12720 SW Pacific Hwy, Tigard, OR 97223
Multi-tenant office building in Tigard with income and value creation.
Property Size5,068 SF
Days on Market142
Property Features for 12720 SW Pacific Hwy
General Information
Standard status
Pending
Size
5,068 SF
Class
B
Total Parking Spaces
30
Property subtype
Office, Retail
Zoning
MU-CBD
Occupancy
40%
Lease Type
Modified Gross
Investment Type
Value Add
Building Details
Year Built
1964
Year Renovated
2021
Buildings
1
Stories
1
Units
5
Tenancy
Multi
Listing Agency:
Berkshire Hathaway HomeServices NW Real Estate
(971) 300-9272
Listed By:
Lauren Musco · License #201207198
Source:
Crexi
Added: Mar 24
Changed: Aug 8
Last Checked: Jul 24 at 1:11PM
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 Berkshire Hathaway HomeServices NW Real Estate
Investment Insights
Based on property information with market context.
Located along SW Pacific Hwy in Tigard’s MU-CBD corridor, this multi-tenant office building presents an investment opportunity. The 5,068 SF building is configured into 5 suites, with 2 leased units providing in-place income and 3 suites available for owner-user occupancy or lease-up. Originally built in 1964 and updated in 2021, the property features individually improved suites, each with dual entrances and separately metered electrical service. Ground-level spaces are equipped with higher-capacity HVAC, supporting a range of medical and professional uses. The exterior showcases a natural stone façade with wood siding, repainted in 2022. Positioned along SW Pacific Hwy, the property benefits from strong visibility with approximately 40,000 vehicles per day and prominent on-building signage. Suite 1 (1,172 SF) is a former chiropractic suite with reception, granite counter tops, natural wood paneled ceilings and wainscoting, six private offices, kitchenette, and strong natural light in each office, turnkey ready for medical use. Suite 3 (875 SF) has a medical/professional layout with five offices, reception, laundry, and quartz finishes. Suites 1 & 3 can be combined into ±2,047 SF or function independently with separate entrances. Suites 2 (985 SF) and Suite 4 (820 SF) are currently leased with long-tenured tax professional and an established massage practice, providing immediate income. Suite 5 (1,188 SF) is a finished basement with three offices, large entry area, sink, laundry hookup, and storage. MU-CBD zoning permits medical, professional office, retail, and residential uses, providing long-term development optionality. The location benefits from a robust daytime population of approximately 66,010, with an influx of nearly 21,928 additional daytime customers during business hours.
Key Highlights
- Multi‑tenant office building in Tigard's MU‑CBD corridor with income from 2 leased suites and 3 suites available for owner‑user or lease‑up.
- High visibility location on SW Pacific Hwy with approximately 40,000 vehicles per day and prominent on‑building signage.
- MU‑CBD zoning permits a wide range of uses including medical, professional office, retail, and residential.
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
$74,658
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
5.35%
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%
$1,493,160
$1.5M
Cap Rate 7%
$1,066,543
$1.1M
Cap Rate 9%
$829,533
$829.5K
Market Conditions
NOI Build-Up for 5,068 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
$133.8K $26.40/SF
− Vacancy
−$9.4K −$1.85/SF
EGI
$124.4K $24.55/SF
− OpEx
−$49.8K −$9.82/SF
NOI
$74.7K $14.73/SF
Area
ZIP 97223
Vacancy
7.00%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
40.00%
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%
$1,493,160
Cap Rate 7%
$1,066,543
Cap Rate 9%
$829,533
Alternative Uses
Best Use
Healthcare Medical
$1.07M
$933.2K – $1.24M
NOI $74,658 @ 7.0% cap · market cap 5.35%
Second Best
Office B
$937.2K
$820.1K – $1.09M
NOI $65,604 @ 7.0% cap · market cap 4.70%
Theoretical Best
Office A
$1.42M
$1.25M – $1.66M
NOI $99,625 @ 7.0% cap · market cap 7.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,436
Businesses Nearby
Explore this area
Business Placement
Demographics for 97223, OR
49,967
Population
21,428
Households
2.3
Avg Household Size
39
Median Age
50%
College-Educated
95%
High-School Grad
11.1 sq mi
ZIP Area
4,502
Density / Sq Mi
$108,040
Median Household Income
$57,411
Median Earnings
$1,726
Median Rent
$577,600
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 - Multi-tenant office building in Tigard with income and value creation.
Where is this office units located?
The property is located at 12720 SW Pacific Hwy Tigard, OR.
What is the asking price?
The asking price for this property is $1,395,000.
What are key features of this property?
This property features: Multi‑tenant office building in Tigard's MU‑CBD corridor with income from 2 leased suites and 3 suites available for owner‑user or lease‑up.; High visibility location on SW Pacific Hwy with approximately 40,000 vehicles per day and prominent on‑building signage.; MU‑CBD zoning permits a wide range of uses including medical, professional office, retail, and residential.
