Office Building with Shared
For Sale
$650,000
1607 STATE St, Salem, OR 97301
Commercial office building with new roof, sewer line, fresh interior/exterior paint, and refinished floors.
Property Size2,608 SF
Price / SF$249.23
Days on Market398
Property Features for 1607 STATE St
General Information
Standard status
Active
Size
2,608 SF
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$7,313
Amenities
3
Heavy Composition
MI-1
Parking.
On Site, On Street.
Building Details
Year Built
1926
Listing Agency:
SMI Commercial Real Estate LLC
(503) 390-6060
Listed By:
Casey Oliver · License #201223998
(503) 851-1441
Source:
Xome
Added: Aug 4, 2025
Changed: Sep 2
Last Checked: Sep 5 at 5:19AM
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 SMI Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
This commercial office building has been updated with a new roof, new sewer line, paint (interior and exterior), and newly refinished floors. The property also includes a large parking area for day-to-day use.
Located at 1607 STATE St, Salem, OR 97301, the building offers both a shared parking lot and free street parking. It is currently offered for sale, with the option that it may also be available for lease.
Located at 1607 STATE St, Salem, OR 97301, the building offers both a shared parking lot and free street parking. It is currently offered for sale, with the option that it may also be available for lease.
Key Highlights
- Commercial office building built in 1926 with heavy composition roof
- New roof, sewer line, fresh interior and exterior paint, and refinished floors
- On‑site and on‑street parking available
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
$35,912
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
5.52%
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%
$718,240
$718.2K
Cap Rate 7%
$513,029
$513.0K
Cap Rate 9%
$399,022
$399.0K
Market Conditions
NOI Build-Up for 2,608 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
$56.3K $21.60/SF
− Vacancy
−$8.4K −$3.24/SF
EGI
$47.9K $18.36/SF
− OpEx
−$12.0K −$4.59/SF
NOI
$35.9K $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%
$718,240
Cap Rate 7%
$513,029
Cap Rate 9%
$399,022
Alternative Uses
Best Use
Office B
$513.0K
$448.9K – $598.5K
NOI $35,912 @ 7.0% cap · market cap 5.52%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$692.4K
$605.9K – $807.9K
NOI $48,471 @ 7.0% cap · market cap 7.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,728
Businesses Nearby
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?
Office building - Commercial office building with new roof, sewer line, fresh interior/exterior paint, and refinished floors.
Where is this office building located?
The property is located at 1607 STATE St Salem, OR.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Commercial office building built in 1926 with heavy composition roof; New roof, sewer line, fresh interior and exterior paint, and refinished floors; On‑site and on‑street parking available
