Manufacturing Property with Industrial
New
For Sale
$6,300,000
291 Commercial Pkwy, Molalla, OR 97038
M-2 zoning accommodates manufacturing, processing, and outdoor storage uses in an established industrial setting.
Property Size45,450 SF
Days on Market5
Property Features for 291 Commercial Pkwy
General Information
Standard status
Active
Size
45,450 SF
Property subtype
Industrial
Zoning
M-2
Additional Details
Road Access
Yes
Building Details
Building Size
45,450 SF
Year Built
2006
Listing Agency:
(503) 789-5750
Listed By:
Daniel Helm, SIOR
(503) 789-5750
Source:
Buildout
Added: Aug 26
Changed: Aug 28
Last Checked: Aug 29 at 6:40AM
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 Daniel Helm, SIOR
Investment Insights
Based on property information with market context.
Built in 2006, this manufacturing property is located in Molalla, within Clackamas County. Heavy Industrial (M-2) zoning is identified for manufacturing, processing, and outdoor storage uses, while the property’s established industrial setting provides a clear connection to those functions.
The property fronts the Woodburn-Estacada Highway and is approximately 35 miles from Portland, 30 miles from Salem, and 15 miles from I-5 at Woodburn. Rural and low-density surroundings characterize the broader setting, creating an industrial property context outside the major metro areas.
The property fronts the Woodburn-Estacada Highway and is approximately 35 miles from Portland, 30 miles from Salem, and 15 miles from I-5 at Woodburn. Rural and low-density surroundings characterize the broader setting, creating an industrial property context outside the major metro areas.
Key Highlights
- 2006 construction
- Heavy Industrial (M‑2) zoning
- Manufacturing, processing, and outdoor storage uses identified
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
$285,266
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
4.53%
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%
$5,705,320
$5.7M
Cap Rate 7%
$4,075,229
$4.1M
Cap Rate 9%
$3,169,622
$3.2M
Market Conditions
NOI Build-Up for 45,450 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
$436.3K $9.60/SF
− Vacancy
−$28.8K −$0.63/SF
EGI
$407.5K $8.97/SF
− OpEx
−$122.3K −$2.69/SF
NOI
$285.3K $6.28/SF
Area
Clackamas County, OR
Vacancy
6.60%
Lease Rate
$9.60 /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%
$5,705,320
Cap Rate 7%
$4,075,229
Cap Rate 9%
$3,169,622
Alternative Uses
Best Use
Industrial
$4.08M
$3.57M – $4.75M
NOI $285,266 @ 7.0% cap · market cap 4.53%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$12.27M
$10.73M – $14.31M
NOI $858,765 @ 7.0% cap · market cap 13.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
144
Businesses Nearby
Explore this area
Business Placement
Demographics for 97038, OR
17,173
Population
6,423
Households
2.7
Avg Household Size
38
Median Age
20%
College-Educated
90%
High-School Grad
130.8 sq mi
ZIP Area
131
Density / Sq Mi
$87,585
Median Household Income
$45,681
Median Earnings
$1,497
Median Rent
$452,200
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Manufacturing property - M-2 zoning accommodates manufacturing, processing, and outdoor storage uses in an established industrial setting.
Where is this manufacturing property located?
The property is located at 291 Commercial Pkwy Molalla, OR.
What is the asking price?
The asking price for this property is $6,300,000.
What are key features of this property?
This property features: 2006 construction; Heavy Industrial (M‑2) zoning; Manufacturing, processing, and outdoor storage uses identified
