Two-Level Office
New
For Sale
$939,000
Pending
16742 SE DIVISION, Portland, OR 97236
Corner-lot commercial property with a main-level kitchen and upgraded restrooms.
Property Size3,960 SF
Days on Market4
Property Features for 16742 SE DIVISION
General Information
Standard status
Pending
Size
3,960 SF
Property subtype
Commercial
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$7,668
Amenities
Central air
Built Up Roof
Central Air Cooling
Forced Air Heating
On Site
Building Details
Year Built
1974
Stories
2
Listing Agency:
REALESTATEPDX.COM
(503) 288-3979
Listed By:
HARLAN MAYER
Source:
Corcoran
Added: Aug 19
Changed: Aug 22
Last Checked: Aug 22 at 3:56AM
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 REALESTATEPDX.COM
Investment Insights
Based on property information with market context.
Built in 1974, this 3,960-square-foot office building includes two levels that can support separate tenant configurations or an owner-occupied layout. The main floor includes a kitchen, and the property features upgraded bathrooms.
Positioned on a corner lot at 16742 SE Division in Portland, the building offers a flexible commercial setting for ownership or leasing. Its two-level arrangement provides practical separation for distinct occupants while retaining a single office asset.
Positioned on a corner lot at 16742 SE Division in Portland, the building offers a flexible commercial setting for ownership or leasing. Its two-level arrangement provides practical separation for distinct occupants while retaining a single office asset.
Key Highlights
- 3,960‑square‑foot office building constructed in 1974
- Two‑level layout can accommodate separate tenant configurations
- Corner lot at 16742 SE Division, Portland, OR 97236
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
$51,261
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
5.46%
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%
$1,025,220
$1.0M
Cap Rate 7%
$732,300
$732.3K
Cap Rate 9%
$569,567
$569.6K
Market Conditions
NOI Build-Up for 3,960 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
$90.3K $22.80/SF
− Vacancy
−$21.9K −$5.54/SF
EGI
$68.3K $17.26/SF
− OpEx
−$17.1K −$4.31/SF
NOI
$51.3K $12.94/SF
Area
Portland, OR
Vacancy
24.30%
Lease Rate
$22.80 /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%
$1,025,220
Cap Rate 7%
$732,300
Cap Rate 9%
$569,567
Alternative Uses
Best Use
Office B
$732.3K
$640.8K – $854.4K
NOI $51,261 @ 7.0% cap · market cap 5.46%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.11M
$973.1K – $1.30M
NOI $77,845 @ 7.0% cap · market cap 8.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
533
Businesses Nearby
Explore this area
Business Placement
Demographics for 97236, OR
40,193
Population
13,736
Households
2.9
Avg Household Size
36
Median Age
21%
College-Educated
81%
High-School Grad
7.7 sq mi
ZIP Area
5,220
Density / Sq Mi
$68,582
Median Household Income
$38,131
Median Earnings
$1,436
Median Rent
$414,400
Median Home Value
Market
Vacancy Rate% for Office in Portland, OR
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Corner-lot commercial property with a main-level kitchen and upgraded restrooms.
Where is this office building located?
The property is located at 16742 SE DIVISION Portland, OR.
What is the asking price?
The asking price for this property is $939,000.
What are key features of this property?
This property features: 3,960‑square‑foot office building constructed in 1974; Two‑level layout can accommodate separate tenant configurations; Corner lot at 16742 SE Division, Portland, OR 97236
