Class B Office
New
For Sale
$3,099,000
2965 Ryan Drive SE, Salem, OR 97301
Flexible workspace combines private offices, open areas, a break room, and an outdoor second-floor patio.
Property Size14,235 SF
Days on Market5
Property Features for 2965 Ryan Drive SE
General Information
Standard status
Active
Size
14,235 SF
Class
B
Property subtype
Office
Additional Details
Highway Access
Yes
Amenities
large break area
outside second floor patio
Building Details
Building Size
14,235 SF
Year Built
1992
Listing Agency:
Capacity Commercial Group
(503) 559-7990
Listed By:
Curt Arthur, SIOR · License #201230204
(503) 559-7990
Source:
Buildout
Added: Aug 26
Changed: Aug 29
Last Checked: Aug 29 at 8:17PM
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 vacant Class B office property, built in 1992, provides a mix of enclosed offices and open workspace across a two-story configuration. The interior includes a substantial break area, while the second floor opens to an exterior patio. A large on-site parking area supports the building’s office use, with parking exceeding 4:1000.
The suburban setting places the property near Salem Airport and I-5, with the Central Business District approximately two miles away. The asset offers a combination of private and collaborative work areas within an established office building, along with convenient regional access and outdoor amenity space.
The suburban setting places the property near Salem Airport and I-5, with the Central Business District approximately two miles away. The asset offers a combination of private and collaborative work areas within an established office building, along with convenient regional access and outdoor amenity space.
Key Highlights
- Vacant Class B office property built in 1992
- Blend of private offices and open work areas
- Large break area plus outdoor second‑floor patio
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
$196,016
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
6.33%
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%
$3,920,320
$3.9M
Cap Rate 7%
$2,800,229
$2.8M
Cap Rate 9%
$2,177,956
$2.2M
Market Conditions
NOI Build-Up for 14,235 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
$307.5K $21.60/SF
− Vacancy
−$46.1K −$3.24/SF
EGI
$261.4K $18.36/SF
− OpEx
−$65.3K −$4.59/SF
NOI
$196.0K $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%
$3,920,320
Cap Rate 7%
$2,800,229
Cap Rate 9%
$2,177,956
Alternative Uses
Best Use
Office B
$2.80M
$2.45M – $3.27M
NOI $196,016 @ 7.0% cap · market cap 6.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.78M
$3.31M – $4.41M
NOI $264,566 @ 7.0% cap · market cap 8.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
491
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 - Flexible workspace combines private offices, open areas, a break room, and an outdoor second-floor patio.
Where is this office building located?
The property is located at 2965 Ryan Drive SE Salem, OR.
What is the asking price?
The asking price for this property is $3,099,000.
What are key features of this property?
This property features: Vacant Class B office property built in 1992; Blend of private offices and open work areas; Large break area plus outdoor second‑floor patio
