Two-Building Retail Strip
For Sale
Contact for pricing
1420 Lancaster Dr NE, Salem, OR 97301
Two-building retail strip center with seven tenants and one available retail space, recently remodeled exterior and signage improvements.
Property Size26,965 SF
Price / SF$220.66
Days on Market397
Property Features for 1420 Lancaster Dr NE
General Information
Standard status
Active
Size
26,965 SF
Property subtype
RETAIL
Listing Agency:
First Commercial Real Estate
(503) 364-7400
Listed By:
Jennifer Martin · License #200303194
(503) 559-2694
Source:
Moodyscre
Added: Aug 14, 2025
Changed: Sep 10
Last Checked: Sep 13 at 5:07AM
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 First Commercial Real Estate
Investment Insights
Based on property information with market context.
This two-building retail strip center features seven tenants and one currently available retail space. The property’s exterior was completely remodeled in 2019, including new landscaping, facade updates, and pylon signage.
The center is located across the street from Fred Meyer and is less than a half-mile from Market Street in Salem, Oregon. The remarks also note an Interstate 5 interchange in the area that is being offered for sale for the first time in 20 years.
The combination of refreshed exterior improvements and an in-place tenant mix is designed to support ongoing neighborhood retail use within a straightforward strip-center configuration.
The center is located across the street from Fred Meyer and is less than a half-mile from Market Street in Salem, Oregon. The remarks also note an Interstate 5 interchange in the area that is being offered for sale for the first time in 20 years.
The combination of refreshed exterior improvements and an in-place tenant mix is designed to support ongoing neighborhood retail use within a straightforward strip-center configuration.
Key Highlights
- Two‑building retail strip center with seven tenants and one 4,200 SF vacancy
- Located across the street from Fred Meyer and less than 1/2 mile from the Market Street interchange
- Exterior completely remodeled in 2019 with new landscaping, facade, and pylon signage
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
$324,470
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
5.45%
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%
$6,489,400
$6.5M
Cap Rate 7%
$4,635,286
$4.6M
Cap Rate 9%
$3,605,222
$3.6M
Market Conditions
NOI Build-Up for 26,965 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
$485.4K $18.00/SF
− Vacancy
−$21.8K −$0.81/SF
EGI
$463.5K $17.19/SF
− OpEx
−$139.1K −$5.16/SF
NOI
$324.5K $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%
$6,489,400
Cap Rate 7%
$4,635,286
Cap Rate 9%
$3,605,222
Alternative Uses
Best Use
Retail
$4.64M
$4.06M – $5.41M
NOI $324,470 @ 7.0% cap · market cap 5.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.16M
$6.26M – $8.35M
NOI $501,161 @ 7.0% cap · market cap 8.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,035
Businesses Nearby
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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
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Market
Vacancy Rate% for Retail in West region
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Frequently Asked Questions
What type of property is this?
Strip mall - Two-building retail strip center with seven tenants and one available retail space, recently remodeled exterior and signage improvements.
Where is this strip mall located?
The property is located at 1420 Lancaster Dr NE Salem, OR.
What is the asking price?
The asking price for this property is $5,950,000.
What are key features of this property?
This property features: Two‑building retail strip center with seven tenants and one 4,200 SF vacancy; Located across the street from Fred Meyer and less than 1/2 mile from the Market Street interchange; Exterior completely remodeled in 2019 with new landscaping, facade, and pylon signage
