Flex Retail/Warehouse
For Sale
Contact for pricing
390 Lancaster Drive NE, Salem, OR 97301
Vacant 6,545 SF flex building with retail, warehouse, and second-floor mezzanine/office space and 9 parking stalls.
Property Size6,545 SF
Lot Size0.31 Acres
Price / SF$174.94
Days on Market72
Property Features for 390 Lancaster Drive NE
General Information
Standard status
Active
Size
6,545 SF
Total Parking Spaces
9
Lot size
0.31 Acres
Property subtype
Retail
Zoning
Commercial General
Investment Type
Owner/User
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1979
Year Renovated
2019
Buildings
1
Stories
2
Units
1
Listing Agency:
Marcus & Millichap - Seattle
Listed By:
Clayton J. Brown · License #WA 123258
(206) 826-5700
Source:
Crexi
Added: Jul 8
Changed: Sep 16
Last Checked: Sep 16 at 12:38PM
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 Marcus & Millichap - Seattle
Investment Insights
Based on property information with market context.
Former Miller Paint property offered for sale as a flexible owner-user or redevelopment opportunity. The 6,545 SF commercial building sits on 0.31 acres and features an open layout with space configured for retail, warehouse, and second-floor mezzanine/office use, creating multiple on-site operating options. The property is currently vacant and includes 9 parking stalls for employee and customer use.
The building has prominent frontage along Lancaster Drive NE and is supported by a protected turning lane for access from both directions. It is positioned within a retail and medical corridor with national and regional tenants nearby, offering consistent consumer traffic. The property is in flexible Commercial General zoning, which permits a broad range of uses including retail, health services, general commercial, warehouse/wholesale sales and services, outdoor storage, and hospitality uses.
The building has prominent frontage along Lancaster Drive NE and is supported by a protected turning lane for access from both directions. It is positioned within a retail and medical corridor with national and regional tenants nearby, offering consistent consumer traffic. The property is in flexible Commercial General zoning, which permits a broad range of uses including retail, health services, general commercial, warehouse/wholesale sales and services, outdoor storage, and hospitality uses.
Key Highlights
- Vacant 6,545 SF commercial building on 0.31 acres with flexible retail, warehouse, and second‑floor mezzanine/office space.
- Prominent Lancaster Dr NE frontage with a protected turning lane for easy access from both traffic directions.
- 9 parking stalls for employee and customer parking.
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
$69,763
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
6.09%
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%
$1,395,260
$1.4M
Cap Rate 7%
$996,614
$996.6K
Cap Rate 9%
$775,144
$775.1K
Market Conditions
NOI Build-Up for 6,545 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
$86.4K $13.20/SF
− Vacancy
−$4.3K −$0.66/SF
EGI
$82.1K $12.54/SF
− OpEx
−$12.3K −$1.88/SF
NOI
$69.8K $10.66/SF
Area
Salem, OR
Vacancy
5.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
15.00%
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%
$1,395,260
Cap Rate 7%
$996,614
Cap Rate 9%
$775,144
Alternative Uses
Best Use
Warehouse
$996.6K
$872.0K – $1.16M
NOI $69,763 @ 7.0% cap · market cap 6.09%
Second Best
Flex RnD
$959.8K
$839.8K – $1.12M
NOI $67,183 @ 7.0% cap · market cap 5.87%
Theoretical Best
Office A
$1.74M
$1.52M – $2.03M
NOI $121,643 @ 7.0% cap · market cap 10.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
814
Businesses Nearby
Under-served
Demand for This Use
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
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Market
Vacancy Rate% for Industrial in West region
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Similar Off Market Nearby
- Dalias Catering Service — 322 Pansy Way NE, Salem, OR 97301
Frequently Asked Questions
What type of property is this?
Flex space - Vacant 6,545 SF flex building with retail, warehouse, and second-floor mezzanine/office space and 9 parking stalls.
Where is this flex space located?
The property is located at 390 Lancaster Drive NE Salem, OR.
What is the asking price?
The asking price for this property is $1,145,000.
What are key features of this property?
This property features: Vacant 6,545 SF commercial building on 0.31 acres with flexible retail, warehouse, and second‑floor mezzanine/office space.; Prominent Lancaster Dr NE frontage with a protected turning lane for easy access from both traffic directions.; 9 parking stalls for employee and customer parking.
