Fully Leased Shopping
For Sale
$3,200,000
4656 Commercial Street SE, Salem, OR 97302
Seven-tenant retail and office complex includes a restaurant, service businesses, and updated roofs and HVAC systems.
Property Size11,292 SF
Days on Market69
Property Features for 4656 Commercial Street SE
General Information
Standard status
Active
Size
11,292 SF
Property subtype
Retail
Occupancy
100%
Net Operating Income
$207,863
Additional Details
Anchor Co-Tenants
UPS Store
Building Details
Building Size
11,292 SF
Year Built
1994
Buildings
3
Tenancy
Multi
Listing Agency:
Capacity Commercial Group
(503) 559-7990
Listed By:
Curt Arthur, SIOR · License #201230204
(503) 559-7990
Source:
Capacitycommercial
Added: Jun 24
Changed: Aug 29
Last Checked: Aug 30 at 4:20PM
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 Capacity Commercial Group
Investment Insights
Based on property information with market context.
This fully leased shopping center at 4656 Commercial Street SE in Salem combines restaurant, retail, and office occupancy across a multi-building property. The Original Pancake House has operated at the site since 1994, while the rear portion includes two additional buildings containing six suites. Existing uses include a UPS Store, chiropractic office, beauty salon, travel agency, insurance business, and rare coins and metals retailer.
The property has seven tenants, with the current occupants in place since 1997. Most roof systems and HVAC equipment have been updated. The combination of a long-operating restaurant, established service businesses, and multiple smaller suites provides a varied commercial tenant mix within one Salem property.
The property has seven tenants, with the current occupants in place since 1997. Most roof systems and HVAC equipment have been updated. The combination of a long-operating restaurant, established service businesses, and multiple smaller suites provides a varied commercial tenant mix within one Salem property.
Key Highlights
- Fully leased seven‑tenant retail and office property
- The Original Pancake House has operated at the site since 1994
- Two additional buildings contain six suites constructed in 1997
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
$156,101
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
4.88%
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%
$3,122,020
$3.1M
Cap Rate 7%
$2,230,014
$2.2M
Cap Rate 9%
$1,734,456
$1.7M
Market Conditions
NOI Build-Up for 11,292 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
$216.8K $19.20/SF
− Vacancy
−$8.7K −$0.77/SF
EGI
$208.1K $18.43/SF
− OpEx
−$52.0K −$4.61/SF
NOI
$156.1K $13.82/SF
Area
Salem, OR
Vacancy
4.00%
Lease Rate
$19.20 /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%
$3,122,020
Cap Rate 7%
$2,230,014
Cap Rate 9%
$1,734,456
Alternative Uses
Best Use
Specialty Retail
$2.23M
$1.95M – $2.60M
NOI $156,101 @ 7.0% cap · market cap 4.88%
Second Best
Office B
$2.22M
$1.94M – $2.59M
NOI $155,491 @ 7.0% cap · market cap 4.86%
Theoretical Best
Office A
$3.00M
$2.62M – $3.50M
NOI $209,869 @ 7.0% cap · market cap 6.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
638
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 97302, OR
39,776
Population
17,888
Households
2.2
Avg Household Size
41
Median Age
43%
College-Educated
95%
High-School Grad
23.5 sq mi
ZIP Area
1,693
Density / Sq Mi
$83,697
Median Household Income
$44,623
Median Earnings
$1,230
Median Rent
$415,200
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?
Shopping center - Seven-tenant retail and office complex includes a restaurant, service businesses, and updated roofs and HVAC systems.
Where is this shopping center located?
The property is located at 4656 Commercial Street SE Salem, OR.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Fully leased seven‑tenant retail and office property; The Original Pancake House has operated at the site since 1994; Two additional buildings contain six suites constructed in 1997
