Flex Warehouse with Office
For Sale
$1,295,000
6501 South Macadam Avenue, Portland, OR 97239
Two-floor flex space with warehouse/mezzanine potential and grade-level loading supports a range of commercial uses.
Property Size8,990 SF
Price / SF$144.05
Days on Market49
Property Features for 6501 South Macadam Avenue
General Information
Standard status
Active
Size
8,990 SF
Class
C
Total Parking Spaces
10
Property subtype
Office
Zoning
CM2
Additional Details
Clear Height
16 ft
Building Details
Building Size
8,990 SF
Stories
2
Listing Agency:
Capacity Commercial Group
(503) 781-4008
Listed By:
Don Ossey, SIOR · License #201233429
(503) 781-4008
Source:
Capacitycommercial
Added: Jun 24
Changed: Aug 7
Last Checked: Aug 11 at 5:30AM
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 Capacity Commercial Group
Investment Insights
Based on property information with market context.
This property offers approximately 8,990 SF across two floors with flexible interior layouts. The conceptual plan contemplates restoring flex capabilities, combining warehouse functionality with a mezzanine configuration. With a 16’ ceiling height and grade-level loading potential, the space is designed to support both operational and light office needs.
The property is located at 6501 South Macadam Avenue in Portland, Oregon. It is under CM2 zoning, which supports diverse commercial uses. The site includes ten surface parking stalls, and street parking is also available. The property also benefits from high visibility and is positioned adjacent to retail, food, and service amenities.
For buyers seeking an adaptable industrial-flex asset, the combination of two-floor layout, mezzanine potential, and grade-level loading provides a practical foundation for a range of tenants. CM2 zoning supports broader commercial use options, while the on-site parking and nearby daily amenities can help accommodate both staff and customers depending on the operator’s needs.
The property is located at 6501 South Macadam Avenue in Portland, Oregon. It is under CM2 zoning, which supports diverse commercial uses. The site includes ten surface parking stalls, and street parking is also available. The property also benefits from high visibility and is positioned adjacent to retail, food, and service amenities.
For buyers seeking an adaptable industrial-flex asset, the combination of two-floor layout, mezzanine potential, and grade-level loading provides a practical foundation for a range of tenants. CM2 zoning supports broader commercial use options, while the on-site parking and nearby daily amenities can help accommodate both staff and customers depending on the operator’s needs.
Key Highlights
- 8,990 SF across two floors with flexible layout options
- Conceptual plan for warehouse and mezzanine flex capabilities
- 16' ceiling height with grade‑level loading potential
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
$91,299
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
7.05%
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%
$1,825,980
$1.8M
Cap Rate 7%
$1,304,271
$1.3M
Cap Rate 9%
$1,014,433
$1.0M
Market Conditions
NOI Build-Up for 8,990 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
$151.0K $16.80/SF
− Vacancy
−$10.6K −$1.18/SF
EGI
$140.5K $15.62/SF
− OpEx
−$49.2K −$5.47/SF
NOI
$91.3K $10.16/SF
Area
Portland, OR
Vacancy
7.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
35.00%
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%
$1,825,980
Cap Rate 7%
$1,304,271
Cap Rate 9%
$1,014,433
Alternative Uses
Best Use
Flex RnD
$1.30M
$1.14M – $1.52M
NOI $91,299 @ 7.0% cap · market cap 7.05%
Second Best
Warehouse
$978.8K
$856.5K – $1.14M
NOI $68,517 @ 7.0% cap · market cap 5.29%
Theoretical Best
Office A
$2.52M
$2.21M – $2.95M
NOI $176,723 @ 7.0% cap · market cap 13.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16 ft
Clear height
Location Intelligence
Trade Area within ½ mile
914
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97239, OR
18,323
Population
9,963
Households
1.8
Avg Household Size
39
Median Age
74%
College-Educated
99%
High-School Grad
3.6 sq mi
ZIP Area
5,090
Density / Sq Mi
$108,795
Median Household Income
$67,384
Median Earnings
$1,749
Median Rent
$713,100
Median Home Value
Market
Vacancy Rate% for Industrial in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Two-floor flex space with warehouse/mezzanine potential and grade-level loading supports a range of commercial uses.
Where is this flex space located?
The property is located at 6501 South Macadam Avenue Portland, OR.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: 8,990 SF across two floors with flexible layout options; Conceptual plan for warehouse and mezzanine flex capabilities; 16' ceiling height with grade‑level loading potential
