Flex Property with Live-Work
For Sale
$900,000
3625 N Hwy 97, Redmond, OR 97756
Block warehouse improvements include a live-work configuration and a separate vacant residence.
Property Size3,168 SF
Price / SF$284.09
Days on Market396
Property Features for 3625 N Hwy 97
General Information
Standard status
Active
Size
3,168 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$2,233
Amenities
Heat Pump, Evaporative
3
Concrete, Laminate, Carpet
Carbon Monoxide Detector
Asphalt
Parking.
Driveway, Gravel, Lot.
Mountain, Panoramic
1.6799999475479126
Ground Level Unit, Paved Road.
Building Details
Year Built
2004
Stories
1
Listing Agency:
Desert Sky Real Estate LLC
(541) 550-6656
Listed By:
Jeffrey Casserly · License #200606059
(541) 550-6656
Source:
Xome
Added: Aug 1, 2025
Changed: Aug 30
Last Checked: Aug 30 at 8:47PM
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 Desert Sky Real Estate LLC
Investment Insights
Based on property information with market context.
This flex property includes a block warehouse presently arranged as a live-work unit, along with a vacant 768-square-foot, two-bedroom, one-bath residence. A separate 600-square-foot private well pump house is also on the site. The property totals 3,168 square feet and was built in 2004, with ground-level access, asphalt paving, and a gravel driveway.
The site has direct frontage on Hwy 97, south of Pershall/Oneil Hwy, with the New Hayden residential community and Redmond city limits adjoining the south property line. Mountain and panoramic views are identified. The septic system was pumped and inspected in 7/25 and reported in good condition. Wastewater treatment expansion lines associated with the Wetlands Project are in process west of the property.
The site has direct frontage on Hwy 97, south of Pershall/Oneil Hwy, with the New Hayden residential community and Redmond city limits adjoining the south property line. Mountain and panoramic views are identified. The septic system was pumped and inspected in 7/25 and reported in good condition. Wastewater treatment expansion lines associated with the Wetlands Project are in process west of the property.
Key Highlights
- 3,168‑square‑foot flex property with block warehouse improvements
- Warehouse currently configured as a live‑work unit
- Additional 768 sq.ft. vacant 2B.1Ba residence
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
$45,494
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
5.05%
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%
$909,880
$909.9K
Cap Rate 7%
$649,914
$649.9K
Cap Rate 9%
$505,489
$505.5K
Market Conditions
NOI Build-Up for 3,168 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
$64.6K $20.40/SF
− Vacancy
−$4.0K −$1.25/SF
EGI
$60.7K $19.15/SF
− OpEx
−$15.2K −$4.79/SF
NOI
$45.5K $14.36/SF
Area
Deschutes County, OR
Vacancy
6.14%
Lease Rate
$20.40 /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%
$909,880
Cap Rate 7%
$649,914
Cap Rate 9%
$505,489
Alternative Uses
Best Use
Office B
$649.9K
$568.7K – $758.2K
NOI $45,494 @ 7.0% cap · market cap 5.05%
Second Best
Mixed Use
$574.3K
$502.5K – $670.0K
NOI $40,202 @ 7.0% cap · market cap 4.47%
Theoretical Best
Retail
$1.09M
$954.0K – $1.27M
NOI $76,321 @ 7.0% cap · market cap 8.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
69
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97756, OR
42,168
Population
18,335
Households
2.3
Avg Household Size
40
Median Age
32%
College-Educated
92%
High-School Grad
126.3 sq mi
ZIP Area
334
Density / Sq Mi
$84,067
Median Household Income
$41,909
Median Earnings
$1,473
Median Rent
$469,000
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?
Flex space - Block warehouse improvements include a live-work configuration and a separate vacant residence.
Where is this flex space located?
The property is located at 3625 N Hwy 97 Redmond, OR.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 3,168‑square‑foot flex property with block warehouse improvements; Warehouse currently configured as a live‑work unit; Additional 768 sq.ft. vacant 2B.1Ba residence
