Cannabis Retail
New
For Sale
$613,900
1890 Capitol St NE, Salem, OR 97301
CommercialSale, Salem, OR
Property Size1,440 SF
Lot Size0.15 Acres
Price / SF$426.32
Days on Market1
Property Features for 1890 Capitol St NE
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Comm
View
City
Directions
I5 exit 256, W on Market, N on Capitol
Subdivision
_176
Standard status
Active
APN
577395
Size
1,440 SF
Lot size
0.15 Acres
Taxes and HOA fees
Tax Description
HIGHWAY ADDITION, BLOCK 4, LOT 9, ACRES 0.147
Tax Annual Amount
3230
Legal Description
HIGHWAY ADDITION, BLOCK 4, LOT 9, ACRES 0.147
Utilities
Heating system
Forced Air
Building Details
Year built
1973
Floors in Building
1
Building materials
Brick, ShingleSiding
Listing Agency:
Berkshire Hathaway HomeServices Real Estate Professionals
(503) 371-3013
Listed By:
Mark Shadrin · License #201215479
(503) 983-4405
Added: Sep 2
Last Checked: Sep 2 at 6:06PM
MLS# 703208900
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.
Located at 1890 Capitol St NE, this 1,440-square-foot commercial building occupies a 0.15-acre corner lot in Salem. The interior includes an open retail and lobby area, two offices or supply rooms, a bathroom, and a break room. Brick and shingle siding, forced-air heating, and prominent signage are existing property features.
The site includes six onsite parking spaces and adjacent street parking. Capitol Street exposure provides access to a corridor where 2015 city traffic data reported more than 12,000 vehicles passing daily. The property is adjacent to Salem Clinic and is zoned Comm.
The building previously operated as a cannabis dispensary. Furniture, fixtures, security equipment, safes, display cases, and other dispensary equipment are negotiable, as is the existing cannabis retail license, subject to buyer qualification, regulatory requirements, and applicable approvals. The source information also identifies potential for eating and drinking, office, laboratory and research, daycare, neighborhood convenience store, and other commercial uses.
The site includes six onsite parking spaces and adjacent street parking. Capitol Street exposure provides access to a corridor where 2015 city traffic data reported more than 12,000 vehicles passing daily. The property is adjacent to Salem Clinic and is zoned Comm.
The building previously operated as a cannabis dispensary. Furniture, fixtures, security equipment, safes, display cases, and other dispensary equipment are negotiable, as is the existing cannabis retail license, subject to buyer qualification, regulatory requirements, and applicable approvals. The source information also identifies potential for eating and drinking, office, laboratory and research, daycare, neighborhood convenience store, and other commercial uses.
Key Highlights
- 1,440‑square‑foot commercial building on a 0.15‑acre corner lot
- Open retail and lobby area with two offices or supply rooms
- Six onsite parking spaces plus adjacent street parking
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
$17,328
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
2.82%
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%
$346,560
$346.6K
Cap Rate 7%
$247,543
$247.5K
Cap Rate 9%
$192,533
$192.5K
Market Conditions
NOI Build-Up for 1,440 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
$25.9K $18.00/SF
− Vacancy
−$1.2K −$0.81/SF
EGI
$24.8K $17.19/SF
− OpEx
−$7.4K −$5.16/SF
NOI
$17.3K $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%
$346,560
Cap Rate 7%
$247,543
Cap Rate 9%
$192,533
Alternative Uses
Best Use
Retail
$247.5K
$216.6K – $288.8K
NOI $17,328 @ 7.0% cap · market cap 2.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$382.3K
$334.5K – $446.1K
NOI $26,763 @ 7.0% cap · market cap 4.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
944
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 Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Cannabis property - Corner-lot commercial building with open customer areas, private rooms, and flexible commercial-use potential.
Where is this cannabis property located?
The property is located at 1890 Capitol St NE Salem, OR.
What is the asking price?
The asking price for this property is $613,900.
What are key features of this property?
This property features: 1,440‑square‑foot commercial building on a 0.15‑acre corner lot; Open retail and lobby area with two offices or supply rooms; Six onsite parking spaces plus adjacent street parking
