Highway 395 Industrial Flex
For Sale
Contact for pricing
81143 N Hwy 395, Hermiston, OR 97838
Industrial flex property with shop, showroom, and expansion potential.
Property Size9,450 SF
Lot Size3.00 Acres
Price / SF$148.15
Days on Market710
Property Features for 81143 N Hwy 395
General Information
Standard status
Active
Size
9,450 SF
Lot size
3.00 Acres
Property subtype
Industrial
Building Details
Buildings
2
Listing Agency:
NAI Tri-Cities
(509) 947-0323
Listed By:
Vicki Monteagudo · License #WA
Source:
Crexi
Added: Aug 30, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:27AM
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 NAI Tri-Cities
Investment Insights
Based on property information with market context.
This industrial flex property, situated on approximately 3 acres, features frontage on Highway 395 in Hermiston, Oregon. The property includes a commercial/repair shop spanning approximately 9,540 square feet, suitable for various operations. Additionally, there is a retail showroom/sales center with office space and restrooms. The property's design allows for flexible use, accommodating maintenance companies, automotive services, and agricultural businesses. Multiple access points facilitate the movement of heavy machinery and vehicles. The grounds offer space for a laydown yard, vehicle storage, parking, or future expansion. This property is suited for businesses seeking to expand in a thriving location.
Key Highlights
- Prime frontage on Highway 395.
- ±9,540 SF commercial/repair shop.**
- Versatile retail showroom/sales center with office space and restrooms.
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
$91,255
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
6.52%
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%
$1,825,100
$1.8M
Cap Rate 7%
$1,303,643
$1.3M
Cap Rate 9%
$1,013,944
$1.0M
Market Conditions
NOI Build-Up for 9,450 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
$136.1K $14.40/SF
− Vacancy
−$5.7K −$0.60/SF
EGI
$130.4K $13.80/SF
− OpEx
−$39.1K −$4.14/SF
NOI
$91.3K $9.66/SF
Area
Umatilla County, OR
Vacancy
4.20%
Lease Rate
$14.40 /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%
$1,825,100
Cap Rate 7%
$1,303,643
Cap Rate 9%
$1,013,944
Alternative Uses
Best Use
Retail
$1.30M
$1.14M – $1.52M
NOI $91,255 @ 7.0% cap · market cap 6.52%
Second Best
Flex RnD
$837.3K
$732.6K – $976.8K
NOI $58,610 @ 7.0% cap · market cap 4.19%
Theoretical Best
Office A
$1.98M
$1.73M – $2.31M
NOI $138,475 @ 7.0% cap · market cap 9.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
94
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97838, OR
28,387
Population
10,166
Households
2.8
Avg Household Size
34
Median Age
15%
College-Educated
79%
High-School Grad
202.4 sq mi
ZIP Area
140
Density / Sq Mi
$76,032
Median Household Income
$40,698
Median Earnings
$1,046
Median Rent
$274,400
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial flex property with shop, showroom, and expansion potential.
Where is this flex space located?
The property is located at 81143 N Hwy 395 Hermiston, OR.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Prime frontage on Highway 395.; ±9,540 SF commercial/repair shop.**; Versatile retail showroom/sales center with office space and restrooms.
