South Portland Mixed-Use
For Sale
Contact for pricing
8 Cottage Road, South Portland, ME 04108
Mixed-use building in Knightville neighborhood, close to downtown Portland.
Property Size1,148 SF
Price / SF$387.63
Days on Market86
Property Features for 8 Cottage Road
General Information
Standard status
Active
Size
1,148 SF
Total Parking Spaces
6
Property subtype
Retail, Office, Mixed Use
Zoning
VE - Village Extension
Investment Type
Redevelopment
Building Details
Year Built
1940
Tenancy
Single
Listing Agency:
The Dunham Group
Listed By:
Greg Perry · License #db917310
Source:
Crexi
Added: May 18
Changed: Aug 8
Last Checked: Aug 8 at 3:10PM
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 The Dunham Group
Investment Insights
Based on property information with market context.
Located in the Knightville neighborhood of South Portland, 8 Cottage Road is a 1,148 square foot mixed-use building suitable for retail or office use. The property is less than 5 minutes by car from downtown Portland. The location benefits from foot traffic generated by residents, visitors, and nearby businesses. The surrounding area includes coffee shops, boutiques, restaurants, marinas, and parks. The area's mix of residential growth, waterfront activity, and local commerce creates an environment for retail, office, service, or mixed-use concepts. The property offers frontage on Cottage Road.
Key Highlights
- Prime location in the heart of South Portland's Knightville neighborhood, a highly desirable and walkable area.
- Mixed‑use building offering versatile business opportunities.
- Excellent accessibility, less than 5 minutes by car to downtown Portland.
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
$16,435
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
3.69%
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%
$328,700
$328.7K
Cap Rate 7%
$234,786
$234.8K
Cap Rate 9%
$182,611
$182.6K
Market Conditions
NOI Build-Up for 1,148 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
$25.1K $21.84/SF
− Vacancy
−$3.2K −$2.75/SF
EGI
$21.9K $19.09/SF
− OpEx
−$5.5K −$4.77/SF
NOI
$16.4K $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%
$328,700
Cap Rate 7%
$234,786
Cap Rate 9%
$182,611
Alternative Uses
Best Use
Office B
$234.8K
$205.4K – $273.9K
NOI $16,435 @ 7.0% cap · market cap 3.69%
Second Best
Mixed Use
$203.7K
$178.2K – $237.6K
NOI $14,258 @ 7.0% cap · market cap 3.20%
Theoretical Best
Office A
$315.5K
$276.1K – $368.1K
NOI $22,087 @ 7.0% cap · market cap 4.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
746
Businesses Nearby
Explore this area
Business Placement
Demographics for 04108, ME
907
Population
1,059
Households
0.9
Avg Household Size
57
Median Age
70%
College-Educated
97%
High-School Grad
1.2 sq mi
ZIP Area
756
Density / Sq Mi
$84,120
Median Household Income
$45,000
Median Earnings
$1,484
Median Rent
$488,400
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?
Mixed-use property - Mixed-use building in Knightville neighborhood, close to downtown Portland.
Where is this mixed-use property located?
The property is located at 8 Cottage Road South Portland, ME.
What is the asking price?
The asking price for this property is $445,000.
What are key features of this property?
This property features: Prime location in the heart of South Portland's Knightville neighborhood, a highly desirable and walkable area.; Mixed‑use building offering versatile business opportunities.; Excellent accessibility, less than 5 minutes by car to downtown Portland.
