Building Details

Tenancy Multi

Listing Agency: James Law Group

Listed By: Christopher James · License #OR

Source: Crexi

Added: Jun 9 Changed: Aug 8 Last Checked: Jul 19 at 5:23AM

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Investment Insights

Based on property information with market context.

171 Sunset Blvd in Cannon Beach is a mixed-use commercial property designed to support both retail leasing and residential/live-work use. The approximately 10,000 SF asset includes multiple commercial tenant spaces alongside residential/live-work space, totaling about 7,000 SF of commercial area and about 2,300 SF of residential area with vaulted ceilings and skylights. The property is currently configured with three occupied units and three vacant units, and the current ownership is actively undertaking improvements and stabilization work within the vacant spaces and throughout the building.

The property is positioned at a highly visible midtown entrance off Highway 101. It offers approximately 100 feet of retail frontage along Sunset Blvd and includes 28 on-site parking spaces, which can support customer access and daily operations.

With C1 zoning permitting up to 50% residential use, this building provides flexibility for investors, owner-users, or mixed-use operators looking to balance commercial leasing with residential/live-work components. The existing mix of occupied and vacant units may support an operator who wants to continue leasing activity while incorporating the in-progress improvements to stabilize and increase occupancy over time.

Key Highlights

• Approx. 10,000 SF mixed‑use property on Sunset Blvd with multiple commercial tenant spaces plus residential/live‑work space
• Includes approx. 7,000 SF commercial space and approx. 2,300 SF residential space with vaulted ceilings and skylights
• Three occupied units and three vacant units, offering existing income plus near‑term lease‑up potential

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

$167,904

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

5.33%

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%

$3,358,080 $3.4M

Cap Rate 7%

$2,398,629 $2.4M

Cap Rate 9%

$1,865,600 $1.9M

Market Conditions

NOI Build-Up for 10,000 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

$264.0K $26.40/SF

− Vacancy

−$40.1K −$4.01/SF

EGI

$223.9K $22.39/SF

− OpEx

−$56.0K −$5.60/SF

NOI

$167.9K $16.79/SF

Area

Clatsop County, OR

Vacancy

15.20%

Lease Rate

$26.40 /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%

$3,358,080

Cap Rate 7%

$2,398,629

Cap Rate 9%

$1,865,600

Alternative Uses

Best Use

Office B

$2.40M

$2.10M – $2.80M (±1% cap)

NOI $167,904 @ 7.0% cap · market cap 5.33%

Second Best

Retail

$2.20M

$1.92M – $2.56M (±1% cap)

NOI $153,653 @ 7.0% cap · market cap 4.88%

Theoretical Best

Office A

$2.91M

$2.54M – $3.39M (±1% cap)

NOI $203,520 @ 7.0% cap · market cap 6.46%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Cannon Beach Fitness Gym & Fitness Center Cleanline Surf (Bike/Boat/Book/etc) Store Michaels Music (Bike/Boat/Book/etc) Store Cameron Francey Health ... Gym & Fitness Center Copies & Fax Shipping Company

Suggested Use

Top Pick Electrical Service Plumbing Service (Bike/Boat/Book/etc) Store Auto Parts Store Storage Facility Garden Center

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

229

Businesses Nearby

Explore this area Business Placement

Demographics for 97110, OR

1,290

Population

1,656

Households

0.8

Avg Household Size

53

Median Age

44%

College-Educated

98%

High-School Grad

6.1 sq mi

ZIP Area

211

Density / Sq Mi

$68,923

Median Household Income

$42,150

Median Earnings

$1,121

Median Rent

$740,100

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

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Mixed-use setup combines retail frontage, multiple tenant spaces, and live-work units for flexible ownership or tenancy plans.

Where is this mixed-use property located?

The property is located at 171 Sunset Blvd Cannon Beach, OR.

What is the asking price?

The asking price for this property is $3,150,000.

What are key features of this property?

This property features: Approx. 10,000 SF mixed‑use property on Sunset Blvd with multiple commercial tenant spaces plus residential/live‑work space; Includes approx. 7,000 SF commercial space and approx. 2,300 SF residential space with vaulted ceilings and skylights; Three occupied units and three vacant units, offering existing income plus near‑term lease‑up potential