Commercial Portfolio with Highway
For Sale
Contact for pricing
1994 Commercial St NE, Salem, OR 97301
Two-parcel commercial/industrial portfolio with showroom, office, and warehouse space.
Property Size9,299 SF
Lot Size0.60 Acres
Price / SF$150.55
Days on Market106
Property Features for 1994 Commercial St NE
General Information
Standard status
Active
Size
9,299 SF
Class
B
Lot size
0.60 Acres
Property subtype
Retail, Industrial
Zoning
CG (General Commercial)
Lease Type
NNN
Building Details
Year Built
1981
Buildings
2
Tenancy
Single
Listing Agency:
First Commercial Real Estate Services
Listed By:
Joshua Kay · License #OR 201215272
Source:
Crexi
Added: May 13
Changed: Aug 8
Last Checked: Aug 26 at 12:06AM
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 First Commercial Real Estate Services
Investment Insights
Based on property information with market context.
This commercial and industrial portfolio includes two parcels offered together. The first parcel, located at 1985 Liberty St NE, features an 8,471 square foot concrete tilt-up building constructed in 1981. The building includes showroom, office, and warehouse space, with 14' x 14' roll-up doors on the north and west sides. It benefits from highway frontage on Liberty St NE (Hwy 99E), with a traffic volume of 17,860 vehicles per day. The second parcel, located at 1994 Commercial St NE, is a 0.30-acre yard or parking parcel with CG zoning, which includes an 828 square foot residential structure. The combined area of both parcels is 0.60 acres, with CG zoning. The property is suitable for owner-users, investors, contractors, auto or service businesses, light industrial purposes, and showroom users.
Key Highlights
- Highway frontage on Liberty St NE (Hwy 99E) with 17,860 VPD.
- Two‑parcel commercial/industrial portfolio totaling 0.60 acres with CG zoning.
- 8,471 SF concrete tilt‑up building with showroom, office, and warehouse space.
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
$128,047
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
9.15%
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%
$2,560,940
$2.6M
Cap Rate 7%
$1,829,243
$1.8M
Cap Rate 9%
$1,422,744
$1.4M
Market Conditions
NOI Build-Up for 9,299 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
$200.9K $21.60/SF
− Vacancy
−$30.1K −$3.24/SF
EGI
$170.7K $18.36/SF
− OpEx
−$42.7K −$4.59/SF
NOI
$128.0K $13.77/SF
Area
Salem, OR
Vacancy
15.00%
Lease Rate
$21.60 /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%
$2,560,940
Cap Rate 7%
$1,829,243
Cap Rate 9%
$1,422,744
Alternative Uses
Best Use
Office B
$1.83M
$1.60M – $2.13M
NOI $128,047 @ 7.0% cap · market cap 9.15%
Second Best
Retail
$1.60M
$1.40M – $1.86M
NOI $111,895 @ 7.0% cap · market cap 7.99%
Theoretical Best
Office A
$2.47M
$2.16M – $2.88M
NOI $172,827 @ 7.0% cap · market cap 12.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
808
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 Office 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?
Mixed-use property - Two-parcel commercial/industrial portfolio with showroom, office, and warehouse space.
Where is this mixed-use property located?
The property is located at 1994 Commercial St NE Salem, OR.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Highway frontage on Liberty St NE (Hwy 99E) with 17,860 VPD.; Two‑parcel commercial/industrial portfolio totaling 0.60 acres with CG zoning.; 8,471 SF concrete tilt‑up building with showroom, office, and warehouse space.
