Retail Grocery
For Sale
Contact for pricing
5518 South 6th Street, Klamath Falls, OR 97603
For sale retail space within a shopping center at 5518 South 6th Street in Klamath Falls.
Property Size10,459 SF
Price / SF$166.36
Days on Market108
Property Features for 5518 South 6th Street
General Information
Standard status
Active
Size
10,459 SF
Property subtype
Retail
Occupancy
66%
Building Details
Year Built
2001
Tenancy
Multi
Listing Agency:
ParaSell Inc
Listed By:
Scott Reid · License #478027307
(949) 942-6585
Source:
Crexi
Added: May 20
Changed: Aug 31
Last Checked: Sep 4 at 10:05AM
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 ParaSell Inc
Investment Insights
Based on property information with market context.
This property is a retail-focused shopping center offering, classified for use as retail space and grocery/convenience retail. The offering totals 10,459 square feet and is presented for sale.
The property is located at 5518 South 6th Street in Klamath Falls, Oregon.
The combination of retail and grocery/convenience categorization makes the space suitable for businesses seeking a storefront environment tied to neighborhood retail activity.
The property is located at 5518 South 6th Street in Klamath Falls, Oregon.
The combination of retail and grocery/convenience categorization makes the space suitable for businesses seeking a storefront environment tied to neighborhood retail activity.
Key Highlights
- Retail space for sale within a shopping center
- Located at 5518 South 6th Street, Klamath Falls
- Year built: 2001
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
$102,622
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
5.90%
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%
$2,052,440
$2.1M
Cap Rate 7%
$1,466,029
$1.5M
Cap Rate 9%
$1,140,244
$1.1M
Market Conditions
NOI Build-Up for 10,459 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
$144.3K $13.80/SF
− Vacancy
−$7.5K −$0.72/SF
EGI
$136.8K $13.08/SF
− OpEx
−$34.2K −$3.27/SF
NOI
$102.6K $9.81/SF
Area
Klamath County, OR
Vacancy
5.20%
Lease Rate
$13.80 /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%
$2,052,440
Cap Rate 7%
$1,466,029
Cap Rate 9%
$1,140,244
Alternative Uses
Best Use
Specialty Retail
$1.47M
$1.28M – $1.71M
NOI $102,622 @ 7.0% cap · market cap 5.90%
Second Best
Retail
$1.29M
$1.13M – $1.51M
NOI $90,649 @ 7.0% cap · market cap 5.21%
Theoretical Best
Office A
$2.14M
$1.87M – $2.49M
NOI $149,646 @ 7.0% cap · market cap 8.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
328
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97603, OR
31,302
Population
13,568
Households
2.3
Avg Household Size
41
Median Age
22%
College-Educated
91%
High-School Grad
340.6 sq mi
ZIP Area
92
Density / Sq Mi
$64,272
Median Household Income
$41,124
Median Earnings
$987
Median Rent
$251,100
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?
Shopping center - For sale retail space within a shopping center at 5518 South 6th Street in Klamath Falls.
Where is this shopping center located?
The property is located at 5518 South 6th Street Klamath Falls, OR.
What is the asking price?
The asking price for this property is $1,740,000.
What are key features of this property?
This property features: Retail space for sale within a shopping center; Located at 5518 South 6th Street, Klamath Falls; Year built: 2001
