Fully Leased Shopping
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2138 Lancaster Dr, Salem, OR 97305
The center is fully leased, with recent lease executions and established tenant tenure across the property.
Property Size22,344 SF
Price / SF$240.33
Days on Market5
Property Features for 2138 Lancaster Dr
General Information
Standard status
Active
Size
22,344 SF
Property subtype
RETAIL
Occupancy
100%
Building Details
Tenancy
Multi
Listing Agency:
Northmarq | Lake Oswego
(503) 887-1233
Listed By:
Mickey Salzman · License #960500191
(212) 603-9549
Source:
Moodyscre
Added: Aug 5
Changed: Aug 9
Last Checked: Aug 9 at 9:03AM
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 Northmarq | Lake Oswego
Investment Insights
Based on property information with market context.
SunnyLan Center is a 22,344-square-foot shopping center with full occupancy and a demonstrated history of tenant retention. Approximately 82% of the GLA has been occupied for five or more years, while 38% has remained with tenants for ten or more years. The property carries a 5.74-year WALT and includes two newly executed leases with Adriana Beauty Salon and Sinalos Bar & Seafood.
The center is positioned along the Lancaster Drive retail corridor near Lancaster Drive NE and Sunnyview Road NE in Salem, Oregon. The intersection records more than 48,000 combined vehicles per day. Nearby housing, schools, and shopping centers with Ross, Walgreens, Crunch Fitness, and Bi-Mart provide established retail context.
The center is positioned along the Lancaster Drive retail corridor near Lancaster Drive NE and Sunnyview Road NE in Salem, Oregon. The intersection records more than 48,000 combined vehicles per day. Nearby housing, schools, and shopping centers with Ross, Walgreens, Crunch Fitness, and Bi-Mart provide established retail context.
Key Highlights
- 22,344‑square‑foot shopping center at 2138 Lancaster Dr, Salem, OR 97305
- Fully leased with approximately 82% of GLA occupied for five or more years
- Approximately 38% of GLA has been occupied for ten or more years
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
$268,865
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
5.01%
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%
$5,377,300
$5.4M
Cap Rate 7%
$3,840,929
$3.8M
Cap Rate 9%
$2,987,389
$3.0M
Market Conditions
NOI Build-Up for 22,344 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
$402.2K $18.00/SF
− Vacancy
−$18.1K −$0.81/SF
EGI
$384.1K $17.19/SF
− OpEx
−$115.2K −$5.16/SF
NOI
$268.9K $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%
$5,377,300
Cap Rate 7%
$3,840,929
Cap Rate 9%
$2,987,389
Alternative Uses
Best Use
Retail
$3.84M
$3.36M – $4.48M
NOI $268,865 @ 7.0% cap · market cap 5.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.93M
$5.19M – $6.92M
NOI $415,277 @ 7.0% cap · market cap 7.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
990
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 97305, OR
44,535
Population
15,219
Households
2.9
Avg Household Size
33
Median Age
16%
College-Educated
77%
High-School Grad
47.2 sq mi
ZIP Area
944
Density / Sq Mi
$64,581
Median Household Income
$32,554
Median Earnings
$1,386
Median Rent
$339,100
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?
Shopping center - The center is fully leased, with recent lease executions and established tenant tenure across the property.
Where is this shopping center located?
The property is located at 2138 Lancaster Dr Salem, OR.
What is the asking price?
The asking price for this property is $5,370,000.
What are key features of this property?
This property features: 22,344‑square‑foot shopping center at 2138 Lancaster Dr, Salem, OR 97305; Fully leased with approximately 82% of GLA occupied for five or more years; Approximately 38% of GLA has been occupied for ten or more years
