Flex Space with
For Sale
Contact for pricing
635 SE Business Way, Bend, OR 97702
Industrial flex property combining showroom, office, and warehouse areas across multiple levels and a separate shop building.
Property Size11,100 SF
Price / SF$234.14
Days on Market46
Property Features for 635 SE Business Way
General Information
Standard status
Active
Size
11,100 SF
Property subtype
INDUSTRIAL
Listing Agency:
Fratzke Commercial Real Estate
(541) 480-2526
Listed By:
Brian Fratzke · License #200402169
(541) 480-2526
Source:
Moodyscre
Added: Jul 17
Changed: Aug 31
Last Checked: Aug 31 at 4:37AM
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 Fratzke Commercial Real Estate
Investment Insights
Based on property information with market context.
Located at 635 SE Business Way in Bend, Oregon, this flex property includes approximately 11,100 RSF across two buildings. The primary 9,000 RSF structure provides an open showroom, offices, and restrooms on both levels, along with a lower level containing additional office space and a 7-foot roll-up door. A separate 2,100 RSF shop and warehouse adds another functional work area with its own 7-foot roll-up door.
The property occupies a 0.60-acre IL-zoned parcel within the Wilson Avenue Business & Industrial Park. Seven front parking spaces are supplemented by paved parking at the lower level, and an existing pole sign serves the site. Building infrastructure includes three 200-amp/240V electrical panels, fiber-optic availability, and a gas heat pump.
The property occupies a 0.60-acre IL-zoned parcel within the Wilson Avenue Business & Industrial Park. Seven front parking spaces are supplemented by paved parking at the lower level, and an existing pole sign serves the site. Building infrastructure includes three 200-amp/240V electrical panels, fiber-optic availability, and a gas heat pump.
Key Highlights
- Approximately 11,100 RSF across a 9,000 RSF main building and 2,100 RSF auxiliary shop
- 0.60‑acre IL‑zoned lot in Wilson Avenue Business & Industrial Park
- Open showroom plus offices and restrooms on both levels of the main building
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
$159,402
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
6.13%
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%
$3,188,040
$3.2M
Cap Rate 7%
$2,277,171
$2.3M
Cap Rate 9%
$1,771,133
$1.8M
Market Conditions
NOI Build-Up for 11,100 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
$226.4K $20.40/SF
− Vacancy
−$13.9K −$1.25/SF
EGI
$212.5K $19.15/SF
− OpEx
−$53.1K −$4.79/SF
NOI
$159.4K $14.36/SF
Area
Bend, OR
Vacancy
6.14%
Lease Rate
$20.40 /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%
$3,188,040
Cap Rate 7%
$2,277,171
Cap Rate 9%
$1,771,133
Alternative Uses
Best Use
Retail
$3.82M
$3.34M – $4.46M
NOI $267,412 @ 7.0% cap · market cap 10.29%
Second Best
Office B
$2.28M
$1.99M – $2.66M
NOI $159,402 @ 7.0% cap · market cap 6.13%
Theoretical Best
Specialty Retail
$4.80M
$4.20M – $5.59M
NOI $335,664 @ 7.0% cap · market cap 12.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
796
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97702, OR
51,161
Population
23,318
Households
2.2
Avg Household Size
42
Median Age
46%
College-Educated
96%
High-School Grad
103.5 sq mi
ZIP Area
494
Density / Sq Mi
$89,094
Median Household Income
$47,743
Median Earnings
$1,825
Median Rent
$620,600
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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- Korean Food by All Elements — 1177 SE 9th St, Bend, OR 97702
Frequently Asked Questions
What type of property is this?
Flex space - Industrial flex property combining showroom, office, and warehouse areas across multiple levels and a separate shop building.
Where is this flex space located?
The property is located at 635 SE Business Way Bend, OR.
What is the asking price?
The asking price for this property is $2,599,000.
What are key features of this property?
This property features: Approximately 11,100 RSF across a 9,000 RSF main building and 2,100 RSF auxiliary shop; 0.60‑acre IL‑zoned lot in Wilson Avenue Business & Industrial Park; Open showroom plus offices and restrooms on both levels of the main building
