Two-Story Office
For Sale
$995,000
835 Forest Avenue, Portland, ME 04103
Private offices and dedicated paved parking support a flexible professional layout.
Property Size3,360 SF
Days on Market40
Property Features for 835 Forest Avenue
General Information
Standard status
Active
Size
3,360 SF
Property subtype
Commercial
Zoning
B2b
Taxes and HOA fees
Annual Taxes
$7,811
Building Details
Building Size
3,360 SF
Year Built
1970
Stories
2
Listing Agency:
Better Homes & Gardens Real Estate/The Masiello Group
(207) 212-3134
Listed By:
Renee Roy
(207) 212-3134
Source:
Startpoint
Added: Jul 14
Changed: Aug 17
Last Checked: Aug 21 at 3:03PM
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 Better Homes & Gardens Real Estate/The Masiello Group
Investment Insights
Based on property information with market context.
Located at 835 Forest Avenue, this 3,360-square-foot office building provides two floors of professional workspace. The wood-frame structure has a brick façade on the front and sides, vinyl siding at the rear, five private offices, two full bathrooms, and two half bathrooms. Built in 1970, the property is zoned B2b and includes a newer underground lawn sprinkler system.
A paved parking lot accommodates 21+ vehicles, with 24-hour street parking available on both sides of Forest Avenue. Entry is provided from the Forest Avenue frontage and from the rear parking area. The building sits directly across from 29-acre Baxter Park, which includes walking trails and an open setting near the property.
A paved parking lot accommodates 21+ vehicles, with 24-hour street parking available on both sides of Forest Avenue. Entry is provided from the Forest Avenue frontage and from the rear parking area. The building sits directly across from 29-acre Baxter Park, which includes walking trails and an open setting near the property.
Key Highlights
- 3,360‑square‑foot, two‑story office building at 835 Forest Avenue
- Five private offices, two full bathrooms, and two half bathrooms
- Paved parking lot accommodates 21+ vehicles
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
$48,102
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
4.83%
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%
$962,040
$962.0K
Cap Rate 7%
$687,171
$687.2K
Cap Rate 9%
$534,467
$534.5K
Market Conditions
NOI Build-Up for 3,360 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
$73.4K $21.84/SF
− Vacancy
−$9.2K −$2.75/SF
EGI
$64.1K $19.09/SF
− OpEx
−$16.0K −$4.77/SF
NOI
$48.1K $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%
$962,040
Cap Rate 7%
$687,171
Cap Rate 9%
$534,467
Alternative Uses
Best Use
Office B
$687.2K
$601.3K – $801.7K
NOI $48,102 @ 7.0% cap · market cap 4.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$923.5K
$808.1K – $1.08M
NOI $64,645 @ 7.0% cap · market cap 6.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
865
Businesses Nearby
Explore this area
Business Placement
Demographics for 04103, ME
31,185
Population
14,336
Households
2.2
Avg Household Size
40
Median Age
58%
College-Educated
97%
High-School Grad
10.2 sq mi
ZIP Area
3,057
Density / Sq Mi
$90,682
Median Household Income
$48,640
Median Earnings
$1,571
Median Rent
$421,800
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?
Office building - Private offices and dedicated paved parking support a flexible professional layout.
Where is this office building located?
The property is located at 835 Forest Avenue Portland, ME.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 3,360‑square‑foot, two‑story office building at 835 Forest Avenue; Five private offices, two full bathrooms, and two half bathrooms; Paved parking lot accommodates 21+ vehicles
