Freestanding Retail Building with
For Sale
$855,000
3965-3985 Rich Dr NE, Salem, OR 97305
Freestanding retail building is fully leased to two tenants and includes 17 striped parking spaces.
Property Size3,125 SF
Lot Size0.25 Acres
Price / SF$273.60
Days on Market69
Property Features for 3965-3985 Rich Dr NE
General Information
Standard status
Active
Size
3,125 SF
Total Parking Spaces
17
Lot size
0.25 Acres
Property subtype
Retail
Zoning
CR
Additional Details
Cap Rate
7%
Building Details
Building Size
3,125 SF
Year Built
1998
Tenancy
Multi
Listed By:
Zach Reichle · License #OR #201246634
(503) 706-0562
Source:
Macadamforbes
Added: Jul 4
Changed: Sep 4
Last Checked: Sep 10 at 8:04AM
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 Zach Reichle
Investment Insights
Based on property information with market context.
The property is a 3,125-square-foot freestanding retail building situated on 0.25 acres and presented in a clean, low-maintenance profile. It is fully leased to two long-tenured tenants, Odd Moe's Pizza and Jackson Hewitt Tax Service, both operating at the location for over two decades. The offering is structured as a turnkey investment, supported by on-site striped parking with 17 dedicated spaces.
Located at 3965-3985 Rich Dr NE in Salem, Oregon’s capital city, the building sits just off Lancaster Drive NE and is positioned for straightforward customer access with on-site parking.
Located at 3965-3985 Rich Dr NE in Salem, Oregon’s capital city, the building sits just off Lancaster Drive NE and is positioned for straightforward customer access with on-site parking.
Key Highlights
- 3,125‑SF freestanding retail building built in 1998
- Fully leased to two tenants: Odd Moe's Pizza and Jackson Hewitt Tax Service
- Both tenants have operated at this location for over two decades
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
$37,603
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
4.40%
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%
$752,060
$752.1K
Cap Rate 7%
$537,186
$537.2K
Cap Rate 9%
$417,811
$417.8K
Market Conditions
NOI Build-Up for 3,125 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
$56.3K $18.00/SF
− Vacancy
−$2.5K −$0.81/SF
EGI
$53.7K $17.19/SF
− OpEx
−$16.1K −$5.16/SF
NOI
$37.6K $12.03/SF
Area
Salem, OR
Vacancy
4.50%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$752,060
Cap Rate 7%
$537,186
Cap Rate 9%
$417,811
Alternative Uses
Best Use
Retail
$537.2K
$470.0K – $626.7K
NOI $37,603 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$829.7K
$726.0K – $968.0K
NOI $58,080 @ 7.0% cap · market cap 6.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
655
Businesses Nearby
Explore this area
Business Placement
Demographics for 97305, OR
44,535
Population
15,219
Households
2.9
Avg Household Size
33
Median Age
16%
College-Educated
77%
High-School Grad
47.2 sq mi
ZIP Area
944
Density / Sq Mi
$64,581
Median Household Income
$32,554
Median Earnings
$1,386
Median Rent
$339,100
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Freestanding retail building is fully leased to two tenants and includes 17 striped parking spaces.
Where is this retail space located?
The property is located at 3965-3985 Rich Dr NE Salem, OR.
What is the asking price?
The asking price for this property is $855,000.
What are key features of this property?
This property features: 3,125‑SF freestanding retail building built in 1998; Fully leased to two tenants: Odd Moe's Pizza and Jackson Hewitt Tax Service; Both tenants have operated at this location for over two decades
