Two-Unit Office
For Sale
$700,000
3511 SE MILWAUKIE Ave, Portland, OR 97202
CommercialSale, Portland, OR
Property Size2,480 SF
Lot Size0.09 Acres
Price / SF$282.26
Days on Market36
Property Features for 3511 SE MILWAUKIE Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CS
Directions
Milwaukie Ave
Subdivision
_143
Standard status
Active
APN
R228572
Size
2,480 SF
Lot size
0.09 Acres
Taxes and HOA fees
Tax Description
OAK KNOLL, BLOCK 1, LOT 1
Tax Annual Amount
6169
Legal Description
OAK KNOLL, BLOCK 1, LOT 1
Utilities
Heating system
Heat Pump (Heating)
Cooling system
Central Air
Building Details
Year built
1973
Floors in Building
2
Roof type
Composition
Listing Agency:
Georgetown Realty Inc.
(503) 256-1112
Listed By:
John Mahaffy
(503) 256-1112
Added: Jul 21
Changed: Aug 25
Last Checked: Aug 25 at 5:06AM
MLS# 531329891
Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office building contains two separate units within 2,480 square feet of commercial space. Constructed in 1973, the property includes central air conditioning, heat pump heating, and a composition roof. The configuration supports separate occupancy arrangements and provides flexibility for office users or future owner occupancy.
The property is located on SE MILWAUKIE Ave in Portland’s 97202 ZIP code, near the Sellwood neighborhood and approximately 5 minutes from downtown Portland. Its setting places the building near established businesses, shopping, dining, and residential areas. The property is zoned CS, and the existing lease structure is NNN.
The property is located on SE MILWAUKIE Ave in Portland’s 97202 ZIP code, near the Sellwood neighborhood and approximately 5 minutes from downtown Portland. Its setting places the building near established businesses, shopping, dining, and residential areas. The property is zoned CS, and the existing lease structure is NNN.
Key Highlights
- Two separate office units within 2,480 square feet
- CS zoning designation
- NNN lease structure
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
$34,404
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
4.91%
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%
$688,080
$688.1K
Cap Rate 7%
$491,486
$491.5K
Cap Rate 9%
$382,267
$382.3K
Market Conditions
NOI Build-Up for 2,480 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
$62.5K $25.20/SF
− Vacancy
−$16.6K −$6.70/SF
EGI
$45.9K $18.50/SF
− OpEx
−$11.5K −$4.62/SF
NOI
$34.4K $13.87/SF
Area
ZIP 97202
Vacancy
26.60%
Lease Rate
$25.20 /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%
$688,080
Cap Rate 7%
$491,486
Cap Rate 9%
$382,267
Alternative Uses
Best Use
Office B
$491.5K
$430.1K – $573.4K
NOI $34,404 @ 7.0% cap · market cap 4.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$591.7K
$517.7K – $690.3K
NOI $41,416 @ 7.0% cap · market cap 5.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
1,556
Businesses Nearby
Explore this area
Business Placement
Demographics for 97202, OR
43,193
Population
20,097
Households
2.1
Avg Household Size
38
Median Age
65%
College-Educated
96%
High-School Grad
6.3 sq mi
ZIP Area
6,856
Density / Sq Mi
$100,353
Median Household Income
$52,090
Median Earnings
$1,674
Median Rent
$684,800
Median Home Value
Market
Vacancy Rate% for Office in Portland, OR
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 - Commercially zoned office property with separate units, central air, and heat pump heating.
Where is this office building located?
The property is located at 3511 SE MILWAUKIE Ave Portland, OR.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: Two separate office units within 2,480 square feet; CS zoning designation; NNN lease structure
