Multi-Tenant Office
New
For Sale
Contact for pricing
659-695 Cottage St NE, Salem, OR 97301
Well-maintained office property with parking and a varied roster of service-oriented occupants.
Property Size9,570 SF
Price / SF$167.19
Days on Market7
Property Features for 659-695 Cottage St NE
General Information
Standard status
Active
Size
9,570 SF
Property subtype
OFFICE
Net Operating Income
$114,429
Building Details
Tenancy
Multi
Listing Agency:
Capacity Commercial Group
(503) 559-7990
Listed By:
Curt Arthur · License #201230204
(503) 559-7990
Source:
Moodyscre
Added: Aug 25
Changed: Aug 29
Last Checked: Aug 30 at 4:41PM
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 9,570-square-foot office building contains multiple tenant spaces and is described as well maintained. Existing occupants include medical and naturopathic practitioners, professional event planners, massage therapists, salons, and counselors, creating a service-oriented tenant mix across the property.
The property is located at 659-695 Cottage St NE in Salem, Oregon, on the northern edge of Downtown Salem. Its downtown-fringe setting places the asset within an established central-city office context, while on-site parking supports the needs of occupants and visitors. The property is offered for sale.
The property is located at 659-695 Cottage St NE in Salem, Oregon, on the northern edge of Downtown Salem. Its downtown-fringe setting places the asset within an established central-city office context, while on-site parking supports the needs of occupants and visitors. The property is offered for sale.
Key Highlights
- 9,570‑square‑foot multi‑tenant office building
- Tenant mix includes medical practitioners, event planners, salons, massage therapists, and counselors
- Well‑maintained office property
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
$131,779
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
8.24%
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%
$2,635,580
$2.6M
Cap Rate 7%
$1,882,557
$1.9M
Cap Rate 9%
$1,464,211
$1.5M
Market Conditions
NOI Build-Up for 9,570 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
$206.7K $21.60/SF
− Vacancy
−$31.0K −$3.24/SF
EGI
$175.7K $18.36/SF
− OpEx
−$43.9K −$4.59/SF
NOI
$131.8K $13.77/SF
Area
Salem, OR
Vacancy
15.00%
Lease Rate
$21.60 /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%
$2,635,580
Cap Rate 7%
$1,882,557
Cap Rate 9%
$1,464,211
Alternative Uses
Best Use
Office B
$1.88M
$1.65M – $2.20M
NOI $131,779 @ 7.0% cap · market cap 8.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.54M
$2.22M – $2.96M
NOI $177,864 @ 7.0% cap · market cap 11.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,382
Businesses Nearby
Explore this area
Business Placement
Demographics for 97301, OR
56,393
Population
21,419
Households
2.6
Avg Household Size
34
Median Age
18%
College-Educated
81%
High-School Grad
11.3 sq mi
ZIP Area
4,991
Density / Sq Mi
$57,497
Median Household Income
$33,220
Median Earnings
$1,197
Median Rent
$310,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Well-maintained office property with parking and a varied roster of service-oriented occupants.
Where is this office building located?
The property is located at 659-695 Cottage St NE Salem, OR.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 9,570‑square‑foot multi‑tenant office building; Tenant mix includes medical practitioners, event planners, salons, massage therapists, and counselors; Well‑maintained office property
