IG-Zoned Flex
New
For Sale
$1,500,000
516 S 1ST AVE, Hillsboro, OR 97123
IG zoning accommodates industrial, office, and flexible-space uses.
Property Size5,255 SF
Days on Market5
Property Features for 516 S 1ST AVE
General Information
Standard status
Active
Size
5,255 SF
Property subtype
Industrial
Zoning
IG
Taxes and HOA fees
Annual Taxes
$3,076
Building Details
Building Size
5,255 SF
Year Built
1975
Listing Agency:
All Professionals Real Estate
Listed By:
Eric Squires · License #201102006
(503) 807-3899
Source:
Eleeterealestate
Added: Sep 23
Changed: Sep 26
Last Checked: Sep 26 at 2:44PM
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 All Professionals Real Estate
Investment Insights
Based on property information with market context.
Built in 1975, this flex property carries IG zoning and is described as suitable for industrial, office, and flex space uses. Its zoning and use range allow for consideration as an owner-occupied or multi-tenant property.
The property is near downtown Hillsboro, major arterials, and TriMet access.
The property is near downtown Hillsboro, major arterials, and TriMet access.
Key Highlights
- IG zoning for industrial, office, or flex space uses
- Built in 1975
- Near downtown Hillsboro, major arterials, and TriMet access
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
$54,228
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
3.62%
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%
$1,084,560
$1.1M
Cap Rate 7%
$774,686
$774.7K
Cap Rate 9%
$602,533
$602.5K
Market Conditions
NOI Build-Up for 5,255 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
$82.0K $15.60/SF
− Vacancy
−$4.5K −$0.86/SF
EGI
$77.5K $14.74/SF
− OpEx
−$23.2K −$4.42/SF
NOI
$54.2K $10.32/SF
Area
Hillsboro, OR
Vacancy
5.50%
Lease Rate
$15.60 /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%
$1,084,560
Cap Rate 7%
$774,686
Cap Rate 9%
$602,533
Alternative Uses
Best Use
Industrial
$774.7K
$677.9K – $903.8K
NOI $54,228 @ 7.0% cap · market cap 3.62%
Second Best
Flex RnD
$766.5K
$670.7K – $894.3K
NOI $53,655 @ 7.0% cap · market cap 3.58%
Theoretical Best
Office A
$1.41M
$1.23M – $1.65M
NOI $98,781 @ 7.0% cap · market cap 6.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,838
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97123, OR
48,369
Population
17,685
Households
2.7
Avg Household Size
37
Median Age
36%
College-Educated
87%
High-School Grad
55.7 sq mi
ZIP Area
868
Density / Sq Mi
$105,999
Median Household Income
$50,578
Median Earnings
$1,814
Median Rent
$489,100
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - IG zoning accommodates industrial, office, and flexible-space uses.
Where is this flex space located?
The property is located at 516 S 1ST AVE Hillsboro, OR.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: IG zoning for industrial, office, or flex space uses; Built in 1975; Near downtown Hillsboro, major arterials, and TriMet access
