Fully Leased Light Industrial
For Sale
$1,905,000
2608-2618 Cherry Avenue Northeast, Salem, OR 97301
Two fully fenced light industrial buildings are offered for sale with three in-place tenants.
Property Size14,400 SF
Days on Market55
Property Features for 2608-2618 Cherry Avenue Northeast
General Information
Standard status
Active
Size
14,400 SF
Property subtype
Factory
Occupancy
100%
Additional Details
Fenced Yard
Yes
Building Details
Building Size
14,400 SF
Year Built
1991
Tenancy
Multi
Listing Agency:
Capacity Commercial Group
Listed By:
Curt Arthur, SIOR · License ##910200259
(503) 559-7990
Source:
Thebrokerlist
Added: Jul 22
Changed: Sep 4
Last Checked: Sep 14 at 5:10AM
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 Capacity Commercial Group
Investment Insights
Based on property information with market context.
This offering includes two light industrial buildings presented as a fully leased investment. The properties are described as fully fenced and are currently occupied by three tenants: Lefty's Plumbing, BW Customs, and Razborka.
The asset is located at 2608–2618 Cherry Avenue Northeast in Salem, Oregon, and is marketed as a sought-after, fully leased light industrial investment.
Buyers should note the multi-tenant configuration across two buildings and the fully fenced site condition as key characteristics of this industrial package.
The asset is located at 2608–2618 Cherry Avenue Northeast in Salem, Oregon, and is marketed as a sought-after, fully leased light industrial investment.
Buyers should note the multi-tenant configuration across two buildings and the fully fenced site condition as key characteristics of this industrial package.
Key Highlights
- Two light industrial buildings offered for sale with 3 in‑place tenants.
- Both buildings are fully fenced.
- Property includes two buildings and was built in 1991.
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
$137,894
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
7.24%
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%
$2,757,880
$2.8M
Cap Rate 7%
$1,969,914
$2.0M
Cap Rate 9%
$1,532,156
$1.5M
Market Conditions
NOI Build-Up for 14,400 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
$207.4K $14.40/SF
− Vacancy
−$10.4K −$0.72/SF
EGI
$197.0K $13.68/SF
− OpEx
−$59.1K −$4.10/SF
NOI
$137.9K $9.58/SF
Area
Salem, OR
Vacancy
5.00%
Lease Rate
$14.40 /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%
$2,757,880
Cap Rate 7%
$1,969,914
Cap Rate 9%
$1,532,156
Alternative Uses
Best Use
Industrial
$1.97M
$1.72M – $2.30M
NOI $137,894 @ 7.0% cap · market cap 7.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.82M
$3.35M – $4.46M
NOI $267,633 @ 7.0% cap · market cap 14.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
738
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 Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Two fully fenced light industrial buildings are offered for sale with three in-place tenants.
Where is this manufacturing property located?
The property is located at 2608-2618 Cherry Avenue Northeast Salem, OR.
What is the asking price?
The asking price for this property is $1,905,000.
What are key features of this property?
This property features: Two light industrial buildings offered for sale with 3 in‑place tenants.; Both buildings are fully fenced.; Property includes two buildings and was built in 1991.
