Single-Story Office
For Sale
$639,000
2318 PACIFIC Ave, Forest Grove, OR 97116
CommercialSale, ForestGrove, OR
Property Size2,424 SF
Lot Size0.41 Acres
Price / SF$263.61
Days on Market61
Property Features for 2318 PACIFIC Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
TCT
Directions
West on Hwy 8, property on left in Forest Grove
Subdivision
_152
Standard status
Active
APN
R421733
Size
2,424 SF
Lot size
0.41 Acres
Taxes and HOA fees
Tax Description
FOREST GROVE, TOWN OF, BLOCK 9, LOT PT 3, ACRES 0.41
Tax Annual Amount
4919
Legal Description
FOREST GROVE, TOWN OF, BLOCK 9, LOT PT 3, ACRES 0.41
Utilities
Heating system
Heat Pump (Heating)
Cooling system
Heat Pump
Building Details
Year built
1950
Floors in Building
1
Building materials
Block, Concrete
Roof type
Flat
Listing Agency:
Keller Williams Sunset Corridor · Keller Williams Realty
(503) 270-5700
Listed By:
Kevin Mapes · License #200607154
(503) 341-0267
Added: Jun 26
Changed: Aug 25
Last Checked: Aug 25 at 9:06PM
MLS# 337537362
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.
This 2,424-square-foot, single-story office building sits on a 0.41-acre lot and is currently occupied by long-term tenants. The concrete block property contains 10 rooms or offices and three bathrooms across two units. One 600-square-foot unit includes three rooms and one bathroom; the 1,824-square-foot unit offers seven rooms or offices, a large storage room, and two bathrooms. The larger suite may be divided to create a third commercial unit for owner use or an additional tenant.
The property is located near Pacific University on a high-traffic road carrying up to 15,000 vehicles per day. Approximately 25 parking spaces serve the building. TCT zoning supports stated commercial uses including retail, office, repair-oriented services, eating and drinking establishments, day care, and multifamily units.
The property is located near Pacific University on a high-traffic road carrying up to 15,000 vehicles per day. Approximately 25 parking spaces serve the building. TCT zoning supports stated commercial uses including retail, office, repair-oriented services, eating and drinking establishments, day care, and multifamily units.
Key Highlights
- 2,424‑square‑foot office building on a 0.41‑acre lot
- Two units measure 600 square feet and 1,824 square feet
- 10 rooms or offices with three bathrooms
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
$31,378
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
4.91%
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%
$627,560
$627.6K
Cap Rate 7%
$448,257
$448.3K
Cap Rate 9%
$348,644
$348.6K
Market Conditions
NOI Build-Up for 2,424 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
$55.3K $22.80/SF
− Vacancy
−$13.4K −$5.54/SF
EGI
$41.8K $17.26/SF
− OpEx
−$10.5K −$4.31/SF
NOI
$31.4K $12.94/SF
Area
Washington County, OR
Vacancy
24.30%
Lease Rate
$22.80 /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%
$627,560
Cap Rate 7%
$448,257
Cap Rate 9%
$348,644
Alternative Uses
Best Use
Office B
$448.3K
$392.2K – $523.0K
NOI $31,378 @ 7.0% cap · market cap 4.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$654.3K
$572.5K – $763.4K
NOI $45,801 @ 7.0% cap · market cap 7.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
844
Businesses Nearby
Explore this area
Business Placement
Demographics for 97116, OR
29,351
Population
10,229
Households
2.9
Avg Household Size
36
Median Age
33%
College-Educated
90%
High-School Grad
82.1 sq mi
ZIP Area
358
Density / Sq Mi
$87,308
Median Household Income
$42,330
Median Earnings
$1,397
Median Rent
$479,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two office units provide a multi-room layout with separate restrooms and approximately 25 parking spaces.
Where is this office building located?
The property is located at 2318 PACIFIC Ave Forest Grove, OR.
What is the asking price?
The asking price for this property is $639,000.
What are key features of this property?
This property features: 2,424‑square‑foot office building on a 0.41‑acre lot; Two units measure 600 square feet and 1,824 square feet; 10 rooms or offices with three bathrooms
