Multi-Building Retail Shopping
For Sale
Contact for pricing
Pending
407 Lancaster Dr NE, Salem, OR 97301
42,033 SF shopping center with 11 suites across six buildings and eight parcels, anchored by established national and regional tenants.
Property Size42,033 SF
Lot Size4.48 Acres
Days on Market151
Property Features for 407 Lancaster Dr NE
General Information
Standard status
Pending
Size
42,033 SF
Class
B
Lot size
4.48 Acres
Property subtype
Retail
Occupancy
96%
Lease Type
NNN
Investment Type
Value Add
Net Operating Income
$750,130
Building Details
Year Built
1988
Year Renovated
2000
Buildings
7
Stories
1
Units
11
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Portland
Listed By:
Eric Garske · License #OR 201235586
(503) 200-2031
Source:
Crexi
Added: Apr 10
Changed: Aug 26
Last Checked: Sep 7 at 7:00AM
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 - Portland
Investment Insights
Based on property information with market context.
Salem Valley Shopping Center is a 42,033-square-foot retail center on 4.48 acres featuring eight parcels with 11 suites across six buildings. The property is offered for sale either as a complete portfolio or as individual parcels, with broker details available upon inquiry.
Anchors include IHOP, Original Roadhouse Grill, Domino’s Pizza, and DaVita. The center is located along Lancaster Drive NE in Salem and benefits from proximity to Willamette Town Center, which includes retailers such as Regal Cinemas, Dollar Tree, Barnes & Noble, and Ulta Beauty, along with nearby national retailers including Rite Aid, Target, Dick’s Sporting Goods, and Walgreens.
With multiple buildings and a tenant mix that includes established dining, healthcare, and restaurant brands, the center is designed to support a steady flow of everyday shopping activity for its surrounding residential and apartment communities.
Anchors include IHOP, Original Roadhouse Grill, Domino’s Pizza, and DaVita. The center is located along Lancaster Drive NE in Salem and benefits from proximity to Willamette Town Center, which includes retailers such as Regal Cinemas, Dollar Tree, Barnes & Noble, and Ulta Beauty, along with nearby national retailers including Rite Aid, Target, Dick’s Sporting Goods, and Walgreens.
With multiple buildings and a tenant mix that includes established dining, healthcare, and restaurant brands, the center is designed to support a steady flow of everyday shopping activity for its surrounding residential and apartment communities.
Key Highlights
- 42,033‑square‑foot Salem Valley Shopping Center on 4.48 acres along Lancaster Drive NE
- 11 retail suites across six buildings on eight parcels
- Anchored by established tenants including IHOP, Original Roadhouse Grill, Domino's Pizza, and DaVita
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
$505,783
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
4.59%
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%
$10,115,660
$10.1M
Cap Rate 7%
$7,225,471
$7.2M
Cap Rate 9%
$5,619,811
$5.6M
Market Conditions
NOI Build-Up for 42,033 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
$756.6K $18.00/SF
− Vacancy
−$34.0K −$0.81/SF
EGI
$722.5K $17.19/SF
− OpEx
−$216.8K −$5.16/SF
NOI
$505.8K $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%
$10,115,660
Cap Rate 7%
$7,225,471
Cap Rate 9%
$5,619,811
Alternative Uses
Best Use
Retail
$7.23M
$6.32M – $8.43M
NOI $505,783 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.16M
$9.77M – $13.02M
NOI $781,209 @ 7.0% cap · market cap 7.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
916
Businesses Nearby
Balanced
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
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- State Street Crossing — 140 Lancaster Dr SE, Salem, OR 97317
- Salem Valley Shopping Center — 407 Lancaster Dr NE, Salem, OR 97301
- Auburn Center — 474-498 Lancaster Dr NE, Salem, OR 97301
- Evergreen Plaza — 3842 Center St NE, Salem, OR 97301
- fi.d.o — Petco, 3811 Center St NE, Salem, OR 97301
Frequently Asked Questions
What type of property is this?
Shopping center - 42,033 SF shopping center with 11 suites across six buildings and eight parcels, anchored by established national and regional tenants.
Where is this shopping center located?
The property is located at 407 Lancaster Dr NE Salem, OR.
What is the asking price?
The asking price for this property is $11,025,000.
What are key features of this property?
This property features: 42,033‑square‑foot Salem Valley Shopping Center on 4.48 acres along Lancaster Drive NE; 11 retail suites across six buildings on eight parcels; Anchored by established tenants including IHOP, Original Roadhouse Grill, Domino's Pizza, and DaVita
