Corner Storefront with Open Retail
New
For Sale
$613,900
1890 Capitol St, Salem, OR 97301
Flexible commercial building with open customer space, private rooms, prominent signage, and on-site parking.
Property Size1,440 SF
Lot Size0.15 Acres
Price / SF$426.32
Days on Market4
Property Features for 1890 Capitol St
General Information
Standard status
Active
Size
1,440 SF
Total Parking Spaces
6
Lot size
0.15 Acres
Property subtype
Retail
Additional Details
Corner Location
Yes
Taxes and HOA fees
Annual Taxes
$3,230
Building Details
Building Size
1,440 SF
Buildings
1
Construction
brick and shingle siding
Listing Agency:
BERKSHIRE HATHAWAY HOMESERVICES R E PROF
Listed By:
MARK SHADRIN · License #201215479
(503) 983-4405
Source:
Harcourtselite
Added: Sep 2
Changed: Sep 4
Last Checked: Sep 4 at 6:05AM
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 BERKSHIRE HATHAWAY HOMESERVICES R E PROF
Investment Insights
Based on property information with market context.
This 1,440-square-foot storefront occupies a 0.15-acre corner parcel on Capitol Street in Salem. The interior includes a broad retail and lobby area, two offices or storage rooms, a bathroom, and a break room. Brick and shingle exterior finishes, prominent signage, and six on-site parking spaces support the property's commercial presentation and access. Adjacent street parking provides additional parking availability.
The building is next to Salem Clinic, and 2015 City of Salem traffic data reported more than 12,000 vehicles passing daily. It previously operated as a cannabis dispensary, and the existing cannabis retail license may be negotiated subject to buyer qualification, regulatory requirements, and applicable approvals. Furniture, fixtures, security equipment, large safes, display cases, and other dispensary equipment are also negotiable.
The building is next to Salem Clinic, and 2015 City of Salem traffic data reported more than 12,000 vehicles passing daily. It previously operated as a cannabis dispensary, and the existing cannabis retail license may be negotiated subject to buyer qualification, regulatory requirements, and applicable approvals. Furniture, fixtures, security equipment, large safes, display cases, and other dispensary equipment are also negotiable.
Key Highlights
- 1,440‑square‑foot commercial building on a 0.15‑acre corner lot
- Open retail and lobby area with two offices or storage 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
Under-served
Demand for This Use
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.
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Frequently Asked Questions
What type of property is this?
Storefront property - Flexible commercial building with open customer space, private rooms, prominent signage, and on-site parking.
Where is this storefront property located?
The property is located at 1890 Capitol St 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 storage rooms; Six onsite parking spaces plus adjacent street parking
