Freestanding Office
New
For Sale
$1,095,000
7 Forest Avenue, Portland, ME 04101
Standalone commercial property with divisible space and zoning that permits residential use.
Property Size5,102 SF
Price / SF$214.62
Days on Market4
Property Features for 7 Forest Avenue
General Information
Standard status
Active
Size
5,102 SF
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$10,233
Building Details
Building Size
5,102 SF
Year Built
1900
Buildings
1
Listing Agency:
Spectrum Real Estate
(207) 329-6732
Listed By:
Anthony Donovan
(207) 329-6732
Source:
Heathershieldsmaine
Added: Aug 19
Changed: Aug 22
Last Checked: Aug 22 at 5:32AM
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 Spectrum Real Estate
Investment Insights
Based on property information with market context.
This freestanding office property dates to 1900 and provides a distinct standalone setting for professional operations. The interior can be divided into separate areas, supporting flexible occupancy within the building. A full basement adds additional below-grade space, although no measurements are included here.
Located at 7 Forest Avenue in downtown Portland, the property places office users within the city’s central business environment, with access to local amenities and transportation. Zoning permits residential use, and the seller will provide residential renovation plans for consideration.
Located at 7 Forest Avenue in downtown Portland, the property places office users within the city’s central business environment, with access to local amenities and transportation. Zoning permits residential use, and the seller will provide residential renovation plans for consideration.
Key Highlights
- Freestanding office building at 7 Forest Avenue
- Built in 1900
- Interior layout can be divided into separate areas
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
$73,041
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
6.67%
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%
$1,460,820
$1.5M
Cap Rate 7%
$1,043,443
$1.0M
Cap Rate 9%
$811,567
$811.6K
Market Conditions
NOI Build-Up for 5,102 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
$111.4K $21.84/SF
− Vacancy
−$14.0K −$2.75/SF
EGI
$97.4K $19.09/SF
− OpEx
−$24.3K −$4.77/SF
NOI
$73.0K $14.32/SF
Area
Cumberland County, ME
Vacancy
12.60%
Lease Rate
$21.84 /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%
$1,460,820
Cap Rate 7%
$1,043,443
Cap Rate 9%
$811,567
Alternative Uses
Best Use
Office B
$1.04M
$913.0K – $1.22M
NOI $73,041 @ 7.0% cap · market cap 6.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.40M
$1.23M – $1.64M
NOI $98,160 @ 7.0% cap · market cap 8.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,135
Businesses Nearby
Explore this area
Business Placement
Demographics for 04101, ME
18,109
Population
11,510
Households
1.6
Avg Household Size
36
Median Age
57%
College-Educated
93%
High-School Grad
2.0 sq mi
ZIP Area
9,055
Density / Sq Mi
$60,726
Median Household Income
$45,009
Median Earnings
$1,457
Median Rent
$600,600
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Standalone commercial property with divisible space and zoning that permits residential use.
Where is this office building located?
The property is located at 7 Forest Avenue Portland, ME.
What is the asking price?
The asking price for this property is $1,095,000.
What are key features of this property?
This property features: Freestanding office building at 7 Forest Avenue; Built in 1900; Interior layout can be divided into separate areas
