One-Story Office
For Sale
$376,500
704 E Main St, Molalla, OR 97038
Vacant C-2 office property with private office, restrooms, break area, storage, and rear access.
Property Size1,152 SF
Days on Market75
Property Features for 704 E Main St
General Information
Standard status
Active
Size
1,152 SF
Total Parking Spaces
12
Property subtype
Commercial
Zoning
C2
Taxes and HOA fees
Annual Taxes
$1,391
Building Details
Building Size
1,152 SF
Year Built
1920
Listing Agency:
Northwest Professional Realty
(503) 969-1373
Listed By:
Robin Edmunds · License #200401106
(503) 969-1373
Source:
Allprofessionalsre
Added: Jun 17
Changed: Aug 29
Last Checked: Aug 29 at 3:44PM
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 Northwest Professional Realty
Investment Insights
Based on property information with market context.
This one-story office building is currently vacant and configured for immediate occupancy. The interior includes a private 12' x 10' office, two restrooms, a kitchen and break area, plus a 7' x 10' storage room with its own rear entrance. The property was built in 1920 and carries C-2 zoning.
Positioned along E Main St in Molalla, the site provides approximately 88 feet of Main Street frontage and convenient customer access. Ample parking is also available. The combination of office space, support areas, street exposure, and existing rear access creates a practical commercial setting for office, retail, service, or professional business use as permitted by zoning.
Positioned along E Main St in Molalla, the site provides approximately 88 feet of Main Street frontage and convenient customer access. Ample parking is also available. The combination of office space, support areas, street exposure, and existing rear access creates a practical commercial setting for office, retail, service, or professional business use as permitted by zoning.
Key Highlights
- Approximately 88 feet of Main Street frontage
- C‑2 zoning supports retail, office, service, and professional business uses
- One‑story building with a private 12' x 10' office
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
$16,022
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
4.26%
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%
$320,440
$320.4K
Cap Rate 7%
$228,886
$228.9K
Cap Rate 9%
$178,022
$178.0K
Market Conditions
NOI Build-Up for 1,152 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
$24.7K $21.48/SF
− Vacancy
−$1.9K −$1.61/SF
EGI
$22.9K $19.87/SF
− OpEx
−$6.9K −$5.96/SF
NOI
$16.0K $13.91/SF
Area
Clackamas County, OR
Vacancy
7.50%
Lease Rate
$21.48 /SF/Yr
Expense Ratio
30.00%
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%
$320,440
Cap Rate 7%
$228,886
Cap Rate 9%
$178,022
Alternative Uses
Best Use
Retail
$228.9K
$200.3K – $267.0K
NOI $16,022 @ 7.0% cap · market cap 4.26%
Second Best
Office B
$213.0K
$186.4K – $248.5K
NOI $14,912 @ 7.0% cap · market cap 3.96%
Theoretical Best
Office A
$311.0K
$272.1K – $362.8K
NOI $21,767 @ 7.0% cap · market cap 5.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
446
Businesses Nearby
Explore this area
Business Placement
Demographics for 97038, OR
17,173
Population
6,423
Households
2.7
Avg Household Size
38
Median Age
20%
College-Educated
90%
High-School Grad
130.8 sq mi
ZIP Area
131
Density / Sq Mi
$87,585
Median Household Income
$45,681
Median Earnings
$1,497
Median Rent
$452,200
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 - Vacant C-2 office property with private office, restrooms, break area, storage, and rear access.
Where is this office building located?
The property is located at 704 E Main St Molalla, OR.
What is the asking price?
The asking price for this property is $376,500.
What are key features of this property?
This property features: Approximately 88 feet of Main Street frontage; C‑2 zoning supports retail, office, service, and professional business uses; One‑story building with a private 12' x 10' office
