One-Story Office
For Sale
$376,500
704 E MAIN St, Molalla, OR 97038
CommercialSale, Molalla, OR
Property Size1,152 SF
Lot Size0.16 Acres
Price / SF$326.82
Days on Market70
Property Features for 704 E MAIN St
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C2
Directions
Corner of Main st and Molalla Ave
Subdivision
_146
Standard status
Active
APN
01101051
Size
1,152 SF
Lot size
0.16 Acres
Taxes and HOA fees
Tax Description
SECTION 09 TOWNSHIP 5S RANGE 2E QUARTER DC TAX LOT 02500
Tax Annual Amount
1392
Legal Description
SECTION 09 TOWNSHIP 5S RANGE 2E QUARTER DC TAX LOT 02500
Utilities
Heating system
Forced Air
Cooling system
Heat Pump
Building Details
Year built
1920
Building materials
WoodSiding
Roof type
Metal
Listing Agency:
Northwest Professional Realty
(503) 829-5405
Listed By:
Robin Edmunds · License #200401106
(503) 969-1373
Added: Jun 17
Changed: Jun 18
Last Checked: Aug 25 at 1:06PM
MLS# 730423898
Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,152-square-foot office building is configured as a one-story commercial property with a private 12' x 10' office, two restrooms, a kitchen/break area, and a 7' x 10' storage room with a rear entrance. The building is vacant and includes forced-air heating, heat-pump cooling, wood siding, and a metal roof.
The property occupies 0.16 acres at 704 E MAIN St in Molalla, Oregon, with approximately 88 feet of Main Street frontage and on-site parking. C-2 zoning supports retail, office, service, and professional business uses as stated in the property information. Built in 1920, the building provides a compact commercial layout for an owner-user or other permitted business use.
The property occupies 0.16 acres at 704 E MAIN St in Molalla, Oregon, with approximately 88 feet of Main Street frontage and on-site parking. C-2 zoning supports retail, office, service, and professional business uses as stated in the property information. Built in 1920, the building provides a compact commercial layout for an owner-user or other permitted business use.
Key Highlights
- 1,152‑square‑foot one‑story office building on a 0.16‑acre lot
- Approximately 88 feet of Main Street frontage
- C‑2 zoning supports retail, office, service, and professional business uses
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 one-story office property with restrooms, kitchen 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: 1,152‑square‑foot one‑story office building on a 0.16‑acre lot; Approximately 88 feet of Main Street frontage; C‑2 zoning supports retail, office, service, and professional business uses
