Two-Story Office Building in
For Sale
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735 E Clarendon St, Gladstone, OR 97027
9,940 SF office building with I-205 access.
Property Size9,940 SF
Price / SF$377.26
Days on Market376
Property Features for 735 E Clarendon St
General Information
Standard status
Active
Size
9,940 SF
Total Parking Spaces
22
Property subtype
Office
Zoning
C3 (General Commercial City of Gladstone)
Lease Type
Gross
Investment Type
Owner/User
Building Details
Year Built
2019
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
Macadam Forbes
(503) 972-7294
Listed By:
Joe Kappler · License #OR 200605069
Source:
Crexi
Added: Aug 7, 2025
Changed: Aug 15
Last Checked: Aug 17 at 6:39AM
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 Macadam Forbes
Investment Insights
Based on property information with market context.
This modern two-story office building, totaling 9,940 square feet, is located in Gladstone. The property features frontage on 82nd Drive, providing excellent visibility, and convenient access to I-205. Off-street parking is available. The building is elevator-served. The first floor is currently occupied by two tenants. The entire second floor, configured as two separate suites totaling 4,970 square feet, is available for an owner/user. Many restaurants are located nearby.
Key Highlights
- Modern office building built in 2019 with 4,970 SF available for owner/user on the second floor.
- Excellent visibility with frontage on 82nd Drive.
- Convenient access to I‑205.
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
$128,670
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
3.43%
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%
$2,573,400
$2.6M
Cap Rate 7%
$1,838,143
$1.8M
Cap Rate 9%
$1,429,667
$1.4M
Market Conditions
NOI Build-Up for 9,940 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
$226.6K $22.80/SF
− Vacancy
−$55.1K −$5.54/SF
EGI
$171.6K $17.26/SF
− OpEx
−$42.9K −$4.31/SF
NOI
$128.7K $12.94/SF
Area
Clackamas County, OR
Vacancy
24.30%
Lease Rate
$22.80 /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%
$2,573,400
Cap Rate 7%
$1,838,143
Cap Rate 9%
$1,429,667
Alternative Uses
Best Use
Office B
$1.84M
$1.61M – $2.14M
NOI $128,670 @ 7.0% cap · market cap 3.43%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.68M
$2.35M – $3.13M
NOI $187,814 @ 7.0% cap · market cap 5.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
581
Businesses Nearby
Explore this area
Business Placement
Demographics for 97027, OR
12,599
Population
5,365
Households
2.3
Avg Household Size
41
Median Age
24%
College-Educated
92%
High-School Grad
2.5 sq mi
ZIP Area
5,040
Density / Sq Mi
$91,957
Median Household Income
$49,689
Median Earnings
$1,721
Median Rent
$464,700
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 - 9,940 SF office building with I-205 access.
Where is this office building located?
The property is located at 735 E Clarendon St Gladstone, OR.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: Modern office building built in 2019 with **4,970 SF available for owner/user on the second floor**.; Excellent visibility with frontage on 82nd Drive.; Convenient access to I‑205.
