Three-Story Office
For Sale
Contact for pricing
235 Union St NE, Salem, OR 97301
Elevator-served office property with underground parking, conference rooms, and a dedicated kitchen.
Property Size11,360 SF
Price / SF$244.72
Days on Market8
Property Features for 235 Union St NE
General Information
Standard status
Active
Size
11,360 SF
Total Parking Spaces
10
Elevators
Yes
Property subtype
OFFICE
Amenities
custom kitchen
hardwood floors
reception area with fireplace
workroom/copy room
conference rooms
wrought iron fencing
Building Details
Buildings
1
Stories
3
Tenancy
Single
Listing Agency:
Coldwell Banker Commercial - Mountain West | Salem
(503) 587-4777
Listed By:
Alex Rhoten · License #841000042
Source:
Moodyscre
Added: Jul 31
Changed: Aug 3
Last Checked: Aug 6 at 9:12AM
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 Coldwell Banker Commercial - Mountain West | Salem
Investment Insights
Based on property information with market context.
Located at 235 Union St NE in Salem, this 11,360-square-foot office building extends across three floors and includes an elevator, reception area with fireplace, multiple conference rooms, and numerous private offices. A workroom and copy room support daily operations, while real hardwood floors and a custom kitchen with appliances add substantial interior finish.
The property also includes a secure underground garage with 10 parking spaces and new wrought iron fencing. Its three-level configuration provides a broad range of office and meeting areas within one building. The current tenant is planning to relocate, creating an opportunity for an owner occupant to use the existing office improvements.
The property also includes a secure underground garage with 10 parking spaces and new wrought iron fencing. Its three-level configuration provides a broad range of office and meeting areas within one building. The current tenant is planning to relocate, creating an opportunity for an owner occupant to use the existing office improvements.
Key Highlights
- 11,360‑square‑foot office building at 235 Union St NE, Salem, OR 97301
- Three floors with elevator access, numerous offices, and multiple conference rooms
- Secure underground garage with 10 parking spaces
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
$156,427
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
5.63%
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%
$3,128,540
$3.1M
Cap Rate 7%
$2,234,671
$2.2M
Cap Rate 9%
$1,738,078
$1.7M
Market Conditions
NOI Build-Up for 11,360 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
$245.4K $21.60/SF
− Vacancy
−$36.8K −$3.24/SF
EGI
$208.6K $18.36/SF
− OpEx
−$52.1K −$4.59/SF
NOI
$156.4K $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%
$3,128,540
Cap Rate 7%
$2,234,671
Cap Rate 9%
$1,738,078
Alternative Uses
Best Use
Office B
$2.23M
$1.96M – $2.61M
NOI $156,427 @ 7.0% cap · market cap 5.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.02M
$2.64M – $3.52M
NOI $211,132 @ 7.0% cap · market cap 7.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,991
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
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Frequently Asked Questions
What type of property is this?
Office building - Elevator-served office property with underground parking, conference rooms, and a dedicated kitchen.
Where is this office building located?
The property is located at 235 Union St NE Salem, OR.
What is the asking price?
The asking price for this property is $2,780,000.
What are key features of this property?
This property features: 11,360‑square‑foot office building at 235 Union St NE, Salem, OR 97301; Three floors with elevator access, numerous offices, and multiple conference rooms; Secure underground garage with 10 parking spaces
