Two-Unit Office
New
For Sale
$625,000
5848 SE MILWAUKIE Ave, Portland, OR 97202
CommercialSale, Portland, OR
Property Size2,856 SF
Lot Size0.13 Acres
Price / SF$218.84
Days on Market5
Property Features for 5848 SE MILWAUKIE Ave
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
RM2
Directions
Corner of SE Milwaukie Ave & SE Knight Street
Subdivision
_143
Standard status
Active
APN
R198800
Size
2,856 SF
Lot size
0.13 Acres
Taxes and HOA fees
Tax Description
KINGTON, BLOCK 1, LOT 8
Tax Annual Amount
4843
Legal Description
KINGTON, BLOCK 1, LOT 8
Utilities
Heating system
Baseboard
Cooling system
Heat Pump
Building Details
Year built
1904
Floors in Building
1
Building materials
WoodSiding
Roof type
Shingle, Flat
Listing Agency:
Keller Williams Realty Portland Premiere
(503) 597-2444
Listed By:
Bradley King · License #201235429
(503) 313-8262
Added: Sep 1
Changed: Sep 3
Last Checked: Sep 5 at 4:06AM
MLS# 350212150
Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,856 SF office building at 5848 SE Milwaukie Avenue includes two rentable units and off-street parking on a 0.13-acre parcel. Built in 1904, the property has wood siding, baseboard heating, heat pump cooling, and a roof configuration combining shingle and flat sections.
The building is located in Portland’s Sellwood area, along SE Milwaukie Avenue between the Westmoreland and Sellwood neighborhoods. Its RM2 zoning and two-unit layout provide the primary physical and land-use characteristics for evaluating the property.
The building is located in Portland’s Sellwood area, along SE Milwaukie Avenue between the Westmoreland and Sellwood neighborhoods. Its RM2 zoning and two-unit layout provide the primary physical and land-use characteristics for evaluating the property.
Key Highlights
- 2,856 SF office building on a 0.13‑acre parcel
- Two rentable units with off‑street parking
- RM2 zoning
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
$39,620
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
6.34%
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%
$792,400
$792.4K
Cap Rate 7%
$566,000
$566.0K
Cap Rate 9%
$440,222
$440.2K
Market Conditions
NOI Build-Up for 2,856 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
$72.0K $25.20/SF
− Vacancy
−$19.1K −$6.70/SF
EGI
$52.8K $18.50/SF
− OpEx
−$13.2K −$4.62/SF
NOI
$39.6K $13.87/SF
Area
ZIP 97202
Vacancy
26.60%
Lease Rate
$25.20 /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%
$792,400
Cap Rate 7%
$566,000
Cap Rate 9%
$440,222
Alternative Uses
Best Use
Office B
$566.0K
$495.3K – $660.3K
NOI $39,620 @ 7.0% cap · market cap 6.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$681.4K
$596.2K – $794.9K
NOI $47,695 @ 7.0% cap · market cap 7.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
855
Businesses Nearby
Explore this area
Business Placement
Demographics for 97202, OR
43,193
Population
20,097
Households
2.1
Avg Household Size
38
Median Age
65%
College-Educated
96%
High-School Grad
6.3 sq mi
ZIP Area
6,856
Density / Sq Mi
$100,353
Median Household Income
$52,090
Median Earnings
$1,674
Median Rent
$684,800
Median Home Value
Market
Vacancy Rate% for Office in Portland, OR
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - RM2-zoned office property with separate rentable units and off-street parking along SE Milwaukie Avenue.
Where is this office building located?
The property is located at 5848 SE MILWAUKIE Ave Portland, OR.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: 2,856 SF office building on a 0.13‑acre parcel; Two rentable units with off‑street parking; RM2 zoning
