Leased FedEx Office Retail
For Sale
Contact for pricing
221 SW Alder Street, Portland, OR 97204
Long-term FedEx Office tenant with dedicated parking supports a straightforward, low landlord-responsibility investment.
Property Size11,600 SF
Price / SF$366.38
Days on Market104
Property Features for 221 SW Alder Street
General Information
Standard status
Active
Size
11,600 SF
Property subtype
Retail
Zoning
Central Commercial
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$279,502
Building Details
Year Built
1956
Buildings
1
Tenancy
Single
Listing Agency:
Commercial Realty Advisors Northwest LLC
Listed By:
Ashley Heichelbech · License #OR 200509097
(503) 274-0211
Source:
Crexi
Added: May 27
Changed: Aug 31
Last Checked: Sep 7 at 2:27AM
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 Commercial Realty Advisors Northwest LLC
Investment Insights
Based on property information with market context.
This retail storefront property has been occupied by FedEx Office for more than 30 years. The site is leased to a long-term, credit-rated tenant, and the existing lease is described as having minimal landlord responsibilities, supporting an operationally simple ownership structure.
The property is positioned at the gateway to Portland’s central business district. Dedicated parking is available at Alder St and 2nd Ave, and the location is described as providing convenient access to both residential neighborhoods and the city’s cultural core, surrounded by office towers and hotels. The site also has direct access to East Portland via the Morrison Bridge.
For buyers or investors seeking leased retail exposure with a long-standing tenant, the current FedEx Office occupancy and minimal landlord responsibilities are the primary considerations. The offering also notes the possibility of future redevelopment, providing an additional consideration for operators evaluating long-term site strategy while maintaining income from the existing lease.
The property is positioned at the gateway to Portland’s central business district. Dedicated parking is available at Alder St and 2nd Ave, and the location is described as providing convenient access to both residential neighborhoods and the city’s cultural core, surrounded by office towers and hotels. The site also has direct access to East Portland via the Morrison Bridge.
For buyers or investors seeking leased retail exposure with a long-standing tenant, the current FedEx Office occupancy and minimal landlord responsibilities are the primary considerations. The offering also notes the possibility of future redevelopment, providing an additional consideration for operators evaluating long-term site strategy while maintaining income from the existing lease.
Key Highlights
- 1956 building with long‑term FedEx Office tenant in place for over 30 years
- Long‑term, credit‑rated tenant supports stable cash flow
- Existing lease has minimal landlord responsibilities
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
$135,198
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
3.18%
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%
$2,703,960
$2.7M
Cap Rate 7%
$1,931,400
$1.9M
Cap Rate 9%
$1,502,200
$1.5M
Market Conditions
NOI Build-Up for 11,600 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
$208.8K $18.00/SF
− Vacancy
−$15.7K −$1.35/SF
EGI
$193.1K $16.65/SF
− OpEx
−$57.9K −$5.00/SF
NOI
$135.2K $11.66/SF
Area
Portland, OR
Vacancy
7.50%
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%
$2,703,960
Cap Rate 7%
$1,931,400
Cap Rate 9%
$1,502,200
Alternative Uses
Best Use
Retail
$1.93M
$1.69M – $2.25M
NOI $135,198 @ 7.0% cap · market cap 3.18%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.26M
$2.85M – $3.80M
NOI $228,030 @ 7.0% cap · market cap 5.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,064
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 97204, OR
1,001
Population
441
Households
2.3
Avg Household Size
40
Median Age
14%
College-Educated
90%
High-School Grad
0.2 sq mi
ZIP Area
5,005
Density / Sq Mi
$16,875
Median Earnings
$783
Median Rent
Market
Vacancy Rate% for Retail in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Long-term FedEx Office tenant with dedicated parking supports a straightforward, low landlord-responsibility investment.
Where is this storefront property located?
The property is located at 221 SW Alder Street Portland, OR.
What is the asking price?
The asking price for this property is $4,250,000.
What are key features of this property?
This property features: 1956 building with long‑term FedEx Office tenant in place for over 30 years; Long‑term, credit‑rated tenant supports stable cash flow; Existing lease has minimal landlord responsibilities
