Office/Medical Building Near State
For Sale
Contact for pricing
1320 Chemeketa St NE, Salem, OR 97301
Charming 1928 building suitable for office or medical use.
Property Size3,281 SF
Price / SF$210.27
Days on Market211
Property Features for 1320 Chemeketa St NE
General Information
Standard status
Active
Size
3,281 SF
Class
B
Total Parking Spaces
8
Property subtype
Office
Zoning
RS with a conditional use approved for office/medical
Investment Type
Owner/User
Building Details
Year Built
1928
Buildings
1
Stories
2
Units
8
Listing Agency:
Capacity Commercial Group
(503) 588-0400
Listed By:
Curt Arthur · License #910200259
Source:
Crexi
Added: Jan 21
Changed: Aug 13
Last Checked: Aug 19 at 5:23PM
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 Capacity Commercial Group
Investment Insights
Based on property information with market context.
This building, originally constructed in 1928 and later converted for office or medical use, combines historical charm with modern infrastructure. The property is situated just three blocks from Willamette University and the Oregon State Capitol, on the eastern fringe of Salem's Central Business District, and is also located in close proximity to Salem Hospital and the Capitol Mall. Previously a dental practice, the 3281-square-foot building retains plumbing and vacuum infrastructure suitable for dental or medical use. It is also suitable for use as a professional office, such as a law office, accounting firm, or state association.
Key Highlights
- Charming 1928 building with modern infrastructure.
- Prime location: close proximity to Willamette University, Oregon State Capitol, and Salem Hospital.
- Versatile building suitable for medical, dental, or professional office use.
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
$45,179
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
6.55%
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%
$903,580
$903.6K
Cap Rate 7%
$645,414
$645.4K
Cap Rate 9%
$501,989
$502.0K
Market Conditions
NOI Build-Up for 3,281 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
$70.9K $21.60/SF
− Vacancy
−$10.6K −$3.24/SF
EGI
$60.2K $18.36/SF
− OpEx
−$15.1K −$4.59/SF
NOI
$45.2K $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%
$903,580
Cap Rate 7%
$645,414
Cap Rate 9%
$501,989
Alternative Uses
Best Use
Office B
$645.4K
$564.7K – $753.0K
NOI $45,179 @ 7.0% cap · market cap 6.55%
Second Best
Healthcare Medical
$627.7K
$549.2K – $732.3K
NOI $43,939 @ 7.0% cap · market cap 6.37%
Theoretical Best
Office A
$871.1K
$762.2K – $1.02M
NOI $60,979 @ 7.0% cap · market cap 8.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,925
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Charming 1928 building suitable for office or medical use.
Where is this medical office space located?
The property is located at 1320 Chemeketa St NE Salem, OR.
What is the asking price?
The asking price for this property is $689,900.
What are key features of this property?
This property features: Charming 1928 building with modern infrastructure.; Prime location: close proximity to Willamette University, Oregon State Capitol, and Salem Hospital.; Versatile building suitable for medical, dental, or professional office use.
