Two-Story Office
New
For Sale
$2,800,000
305 - 321 Court Street NE, Salem, OR 97301
Two-story office property with CB zoning and restaurant tenancy.
Property Size17,625 SF
Lot Size0.14 Acres
Price / SF$158.87
Days on Market5
Property Features for 305 - 321 Court Street NE
General Information
Standard status
Active
Size
17,625 SF
Class
B
Lot size
0.14 Acres
Property subtype
Office
Zoning
CB
Occupancy
98%
Additional Details
Asking Price
$2,800,000
Building Details
Building Size
17,625 SF
Year Built
1940
Buildings
1
Stories
2
Listed By:
Terry Hancock, SIOR
(503) 370-2581
Source:
Hancockre
Added: Sep 18
Last Checked: Sep 21 at 4:37AM
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 Terry Hancock, SIOR
Investment Insights
Based on property information with market context.
Built in 1940, this two-story office building contains 17,625 SF on a 0.14-acre parcel. The property is zoned CB and includes a restaurant tenancy within the overall office-oriented asset.
The building is located in downtown Salem at 305–321 Court Street NE. Occupancy is reported at 98% leased, and the restaurant tenant is committed to executing a new five-year lease upon closing.
The building is located in downtown Salem at 305–321 Court Street NE. Occupancy is reported at 98% leased, and the restaurant tenant is committed to executing a new five-year lease upon closing.
Key Highlights
- 17,625 SF two‑story office building
- 98% leased
- 0.14‑acre parcel in downtown Salem
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
$242,696
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
8.67%
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%
$4,853,920
$4.9M
Cap Rate 7%
$3,467,086
$3.5M
Cap Rate 9%
$2,696,622
$2.7M
Market Conditions
NOI Build-Up for 17,625 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
$380.7K $21.60/SF
− Vacancy
−$57.1K −$3.24/SF
EGI
$323.6K $18.36/SF
− OpEx
−$80.9K −$4.59/SF
NOI
$242.7K $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%
$4,853,920
Cap Rate 7%
$3,467,086
Cap Rate 9%
$2,696,622
Alternative Uses
Best Use
Office B
$3.47M
$3.03M – $4.04M
NOI $242,696 @ 7.0% cap · market cap 8.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.68M
$4.09M – $5.46M
NOI $327,571 @ 7.0% cap · market cap 11.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
98%
Occupancy
Location Intelligence
Trade Area within ½ mile
3,569
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office 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?
Office building - Two-story office property with CB zoning and restaurant tenancy.
Where is this office building located?
The property is located at 305 - 321 Court Street NE Salem, OR.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: 17,625 SF two‑story office building; 98% leased; 0.14‑acre parcel in downtown Salem
