Building Details

Year built 1920

Roof type Metal, Composition

Listing Agency: Real Broker o***@therealbrokerage.com Show Phone

Listed By: Troy DeVries · License #201236644 Show Phone

Added: Mar 25 Changed: Aug 25 Last Checked: Aug 26 at 5:06AM

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MLS# 712166226

Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This live-work property combines a 1,038-square-foot home/office with an approximately 1,250-square-foot shop. The office component includes three rooms, a full bathroom, laundry area, and living room that can function as a waiting area or lobby. The shop adds a large garage door, separate office, bathroom, large room, and substantial work area. Together, the improvements provide 2,288 square feet of building area.

RC zoning supports a range of identified commercial applications, including live-work use, retail, contractor space, financial institutions, and offices. The property is located at 16265 SE Highway 224 in Damascus, Oregon, with significant traffic flow noted along the highway. Recent property updates include a brand new septic tank, newer water heater, and roof replacement around 2019. Heating is provided by forced air, and the roofs are metal and composition.

Key Highlights

• 2,288 square feet of total building area
• 1,038‑square‑foot home/office with three rooms, full bathroom, laundry area, and living room
• Approximately 1,250‑square‑foot shop with large garage door, office, bathroom, and work area

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

$40,488

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

7.51%

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%

$809,760 $809.8K

Cap Rate 7%

$578,400 $578.4K

Cap Rate 9%

$449,867 $449.9K

Market Conditions

NOI Build-Up for 2,288 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

$67.8K $29.64/SF

− Vacancy

−$5.5K −$2.42/SF

EGI

$62.3K $27.22/SF

− OpEx

−$21.8K −$9.53/SF

NOI

$40.5K $17.70/SF

Area

Clackamas County, OR

Vacancy

8.15%

Lease Rate

$29.64 /SF/Yr

Expense Ratio

35.00%

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%

$809,760

Cap Rate 7%

$578,400

Cap Rate 9%

$449,867

Alternative Uses

Best Use

Flex RnD

$578.4K

$506.1K – $674.8K (±1% cap)

NOI $40,488 @ 7.0% cap · market cap 7.51%

Second Best

Mixed Use

$513.5K

$449.3K – $599.1K (±1% cap)

NOI $35,943 @ 7.0% cap · market cap 6.67%

Theoretical Best

Office A

$617.6K

$540.4K – $720.5K (±1% cap)

NOI $43,231 @ 7.0% cap · market cap 8.02%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Live-work space

Suggested Use

Top Pick (Bike/Boat/Book/etc) Store Tanning Salon Pet Grooming Service Supermarket Buffet Nursing Home

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

60

Businesses Nearby

Explore this area Business Placement

Demographics for 97089, OR

14,111

Population

4,991

Households

2.8

Avg Household Size

42

Median Age

32%

College-Educated

96%

High-School Grad

21.6 sq mi

ZIP Area

653

Density / Sq Mi

$114,516

Median Household Income

$51,284

Median Earnings

$2,642

Median Rent

$616,800

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this live-work space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Live-work space - RC-zoned property combines office-ready rooms, residential-style support areas, and a separate work building along SE Highway 224.

Where is this live-work space located?

The property is located at 16265 SE HIGHWAY 224 Damascus, OR.

What is the asking price?

The asking price for this property is $539,000.

What are key features of this property?

This property features: 2,288 square feet of total building area; 1,038‑square‑foot home/office with three rooms, full bathroom, laundry area, and living room; Approximately 1,250‑square‑foot shop with large garage door, office, bathroom, and work area