Two-Story Office
For Sale
$520,000
245 245 Oak St, Salem, OR 97301
Built in 1900, this two-story office building features separate level reception areas and multiple private workspaces.
Property Size1,892 SF
Price / SF$274.84
Days on Market28
Property Features for 245 245 Oak St
General Information
Standard status
Active
Size
1,892 SF
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$5,246
Amenities
3
Building Details
Year Built
1900
Stories
2
Tenancy
Single
Listing Agency:
BLUM REAL ESTATE
(503) 485-1900
Listed By:
GLADYS BLUM
(503) 485-1900
Source:
Xome
Added: Jul 13
Changed: Aug 8
Last Checked: Aug 9 at 5:37AM
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 BLUM REAL ESTATE
Investment Insights
Based on property information with market context.
This historic two-story office building was built in 1900 and is described as well-maintained. The main level includes a reception area and four private offices. The lower level also has a reception area and four partitioned workspaces, providing a practical mix of front-of-house space and individual work areas.
The property is located at 245 245 Oak St SE in Salem, near the Salem Convention Center and downtown amenities. It is currently occupied by a single tenant, and the layout is presented as flexible enough to accommodate multiple tenants, with separate entrances for each level.
As currently configured, the building supports a two-level operational plan with reception on both floors and multiple enclosed or partitioned workspace options, making it a straightforward fit for office tenants seeking separate areas within one building.
The property is located at 245 245 Oak St SE in Salem, near the Salem Convention Center and downtown amenities. It is currently occupied by a single tenant, and the layout is presented as flexible enough to accommodate multiple tenants, with separate entrances for each level.
As currently configured, the building supports a two-level operational plan with reception on both floors and multiple enclosed or partitioned workspace options, making it a straightforward fit for office tenants seeking separate areas within one building.
Key Highlights
- Historic two‑story office building built in 1900 with separate reception areas on each level
- Main level layout includes a reception area plus four private offices
- Lower level includes a reception area and four partitioned workspaces
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
$26,053
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%
$521,060
$521.1K
Cap Rate 7%
$372,186
$372.2K
Cap Rate 9%
$289,478
$289.5K
Market Conditions
NOI Build-Up for 1,892 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
$40.9K $21.60/SF
− Vacancy
−$6.1K −$3.24/SF
EGI
$34.7K $18.36/SF
− OpEx
−$8.7K −$4.59/SF
NOI
$26.1K $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%
$521,060
Cap Rate 7%
$372,186
Cap Rate 9%
$289,478
Alternative Uses
Best Use
Office B
$372.2K
$325.7K – $434.2K
NOI $26,053 @ 7.0% cap · market cap 5.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$502.3K
$439.6K – $586.1K
NOI $35,164 @ 7.0% cap · market cap 6.76%
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
3,287
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 - Built in 1900, this two-story office building features separate level reception areas and multiple private workspaces.
Where is this office building located?
The property is located at 245 245 Oak St Salem, OR.
What is the asking price?
The asking price for this property is $520,000.
What are key features of this property?
This property features: Historic two‑story office building built in 1900 with separate reception areas on each level; Main level layout includes a reception area plus four private offices; Lower level includes a reception area and four partitioned workspaces
