Renovated Medical/Professional Office
For Sale
$1,395,000
Pending
12720 SW PACIFIC, Portland, OR 97223
Fully renovated multi-suite building in downtown Tigard's MU-CBD corridor.
Property Size5,068 SF
Lot Size0.33 Acres
Days on Market150
Property Features for 12720 SW PACIFIC
General Information
Standard status
Pending
Size
5,068 SF
Lot size
0.33 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$8,368
Amenities
Central air
Baseboard Heating
Central Air Cooling
Flat Roof
Forced Air Heating
Off Street
On Site
Building Details
Year Built
1964
Listing Agency:
BERKSHIRE HATHAWAY HOMESERVICES NW REAL ESTATE
(503) 624-9660
Listed By:
LAUREN MUSCO · License #201207198
Source:
Corcoran
Added: Mar 24
Changed: Aug 8
Last Checked: Jul 23 at 9:32AM
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.
This is a renovated, multi-suite medical and professional office building located in downtown Tigard's MU-CBD corridor. The building offers 5,068 square feet across 5 suites. There are 30 on-site parking spaces. The property has approximately 40,000 vehicles per day (VPD) frontage on SW Pacific Highway with prominent signage. Suite 1, with 1,172 square feet, is a former chiropractic suite featuring a reception area with granite counters and wainscoting, 6 private offices, a natural wood-paneled ceiling, recessed lighting, a kitchenette, and natural light in every room. Suite 3, offering 875 square feet, is fully built out for medical or professional use and includes 5 offices, quartz counters, laundry facilities, and a reception area. A shared office/breakroom between Suites 1 and 3 allows them to combine into one suite of approximately 2,047 square feet or remain fully independent, each with its own dual entrance. Suites 2 (985 square feet) and Suite 4 (820 square feet) are currently leased to a long-tenured tax professional and an established massage practice, providing immediate income. Unit 5, a finished basement with 1,188 square feet, features a dual entrance, 3 offices, a large entrance area, a back room with a sink and laundry hookup, and storage. Constructed in 1964 and updated in 2021, the building features a natural stone facade with wood siding painted in 2022 and higher-capacity HVAC. Each suite has been individually updated and has individually metered electric service. The MU-CBD zoning permits medical, professional office, retail, and residential uses.
Key Highlights
- Fully renovated medical/professional office building in downtown Tigard's MU‑CBD corridor.
- Income‑producing property with 2 suites currently leased to established tenants.
- Owner‑occupancy opportunity with 3 suites available for immediate use or lease‑up.
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
791
Businesses Nearby
Under-served
Demand for This Use
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 Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully renovated multi-suite building in downtown Tigard's MU-CBD corridor.
Where is this medical office space located?
The property is located at 12720 SW PACIFIC Portland, 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: Fully renovated medical/professional office building in downtown Tigard's MU‑CBD corridor.; Income‑producing property with 2 suites currently leased to established tenants.; Owner‑occupancy opportunity with 3 suites available for immediate use or lease‑up.
