Two-Story Office Building with
For Sale
$1,115,000
509 Ocean Ave, Portland, ME 04101
Two-story office building with reception, eight private offices, conference room, kitchenette, and two restrooms on RN-3 land.
Property Size2,254 SF
Lot Size1.53 Acres
Days on Market65
Property Features for 509 Ocean Ave
General Information
Standard status
Active
Size
2,254 SF
Class
B
Lot size
1.53 Acres
Property subtype
Office
Zoning
RN-3
Building Details
Building Size
2,254 SF
Year Built
1914
Stories
2
Listing Agency:
The Boulos Company Portland
(207) 831-5838
Listed By:
Drew Sigfridson, SIOR
(207) 831-5838
Source:
Boulos
Added: Jun 9
Changed: Aug 8
Last Checked: Jun 10 at 12:14PM
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 The Boulos Company Portland
Investment Insights
Based on property information with market context.
Free-standing, two-story office building on 1.53± acres on Ocean Avenue, offering an efficient layout and excess RN-3 zoned land. The office interior includes a welcoming reception area, eight private offices, two restrooms, a conference room, and a kitchenette/breakroom.
In addition to the existing office improvements, the property includes excess land with potential for future residential expansion or redevelopment. The remarks indicate permitting up to four-family dwellings on lots as small as 5,000± SF.
The building features excellent natural light, with windows in every office. The property is also described as being approximately 450± feet from Payson Park, which includes amenities such as a disc golf course, tennis courts, ice skating, walking trails, and a community garden.
In addition to the existing office improvements, the property includes excess land with potential for future residential expansion or redevelopment. The remarks indicate permitting up to four-family dwellings on lots as small as 5,000± SF.
The building features excellent natural light, with windows in every office. The property is also described as being approximately 450± feet from Payson Park, which includes amenities such as a disc golf course, tennis courts, ice skating, walking trails, and a community garden.
Key Highlights
- Two‑story, free‑standing office building on 1.53± acres on Ocean Avenue (built 1914).
- RN‑3 zoned land allows up to four‑family dwellings, with permitting for lots as small as 5,000± SF.
- Efficient layout with welcoming reception area, conference room, kitchenette/breakroom, and eight private offices.
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
$32,269
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
2.89%
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%
$645,380
$645.4K
Cap Rate 7%
$460,986
$461.0K
Cap Rate 9%
$358,544
$358.5K
Market Conditions
NOI Build-Up for 2,254 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
$49.2K $21.84/SF
− Vacancy
−$6.2K −$2.75/SF
EGI
$43.0K $19.09/SF
− OpEx
−$10.8K −$4.77/SF
NOI
$32.3K $14.32/SF
Area
Cumberland County, ME
Vacancy
12.60%
Lease Rate
$21.84 /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%
$645,380
Cap Rate 7%
$460,986
Cap Rate 9%
$358,544
Alternative Uses
Best Use
Office B
$461.0K
$403.4K – $537.8K
NOI $32,269 @ 7.0% cap · market cap 2.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$619.5K
$542.1K – $722.8K
NOI $43,366 @ 7.0% cap · market cap 3.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
385
Businesses Nearby
Explore this area
Business Placement
Demographics for 04101, ME
18,109
Population
11,510
Households
1.6
Avg Household Size
36
Median Age
57%
College-Educated
93%
High-School Grad
2.0 sq mi
ZIP Area
9,055
Density / Sq Mi
$60,726
Median Household Income
$45,009
Median Earnings
$1,457
Median Rent
$600,600
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office building with reception, eight private offices, conference room, kitchenette, and two restrooms on RN-3 land.
Where is this office building located?
The property is located at 509 Ocean Ave Portland, ME.
What is the asking price?
The asking price for this property is $1,115,000.
What are key features of this property?
This property features: Two‑story, free‑standing office building on 1.53± acres on Ocean Avenue (built 1914).; RN‑3 zoned land allows up to four‑family dwellings, with permitting for lots as small as 5,000± SF.; Efficient layout with welcoming reception area, conference room, kitchenette/breakroom, and eight private offices.
