Leased Restaurant and Bar
For Sale
$649,000
2407 State St, Salem, OR 97305
Restaurant and bar space is leased, with the building and property available for sale.
Property Size2,427 SF
Price / SF$267.41
Days on Market223
Property Features for 2407 State St
General Information
Standard status
Active
Size
2,427 SF
Taxes and HOA fees
Annual Taxes
$8,754
Listing Agency:
COLDWELL BNKR/COMMERCIAL DIV
(503) 588-3508
Listed By:
PAM RUSHING · License #200202271
(503) 566-5706
Source:
Exprealty
Added: Feb 3
Changed: Sep 10
Last Checked: Sep 13 at 12:24PM
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 BNKR/COMMERCIAL DIV
Investment Insights
Based on property information with market context.
This offering includes the building and property only, as the restaurant/bar is currently leased and the tenant should not be disturbed. The tenant has more than three years remaining on the lease, with options extending the term further.
The property is located on a busy intersection of 24th and State Street, supporting a steady commercial presence at a prominent local corner.
This listing is focused on the real estate; a possible sale of the business is available on a separate deal for those interested in pursuing both transactions.
The property is located on a busy intersection of 24th and State Street, supporting a steady commercial presence at a prominent local corner.
This listing is focused on the real estate; a possible sale of the business is available on a separate deal for those interested in pursuing both transactions.
Key Highlights
- Building and property for sale; restaurant/bar space is currently leased.
- Restaurant/bar tenant has over 3 years remaining on the lease with options.
- Located on a busy intersection of 24th and State Street.
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
$33,551
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
5.17%
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%
$671,020
$671.0K
Cap Rate 7%
$479,300
$479.3K
Cap Rate 9%
$372,789
$372.8K
Market Conditions
NOI Build-Up for 2,427 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
$46.6K $19.20/SF
− Vacancy
−$1.9K −$0.77/SF
EGI
$44.7K $18.43/SF
− OpEx
−$11.2K −$4.61/SF
NOI
$33.6K $13.82/SF
Area
Salem, OR
Vacancy
4.00%
Lease Rate
$19.20 /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%
$671,020
Cap Rate 7%
$479,300
Cap Rate 9%
$372,789
Alternative Uses
Best Use
Specialty Retail
$479.3K
$419.4K – $559.2K
NOI $33,551 @ 7.0% cap · market cap 5.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$644.4K
$563.8K – $751.8K
NOI $45,107 @ 7.0% cap · market cap 6.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
975
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in West region
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Similar Off Market Nearby
- Graveyard Bar — 2407 State St, Salem, OR 97301
- King Hookah Lounge — 1930 State St, Salem, OR 97301
- Noble's Tavern — 1747 Center St NE, Salem, OR 97301
- Starbucks — 1265 Center St NE, Salem, OR 97301
- Lickit — 604 17th st ne, salem, or 97301
Frequently Asked Questions
What type of property is this?
Bar & Pub - Restaurant and bar space is leased, with the building and property available for sale.
Where is this bar & pub located?
The property is located at 2407 State St Salem, OR.
What is the asking price?
The asking price for this property is $649,000.
What are key features of this property?
This property features: Building and property for sale; restaurant/bar space is currently leased.; Restaurant/bar tenant has over 3 years remaining on the lease with options.; Located on a busy intersection of 24th and State Street.
