Net-Leased Commercial
For Sale
$1,725,000
8535 N LOMBARD St Unit 8535, Portland, OR 97203
Net leases are in place, with leased second-floor offices and additional unfinished area for future completion.
Property Size8,600 SF
Price / SF$200.58
Days on Market147
Property Features for 8535 N LOMBARD St Unit 8535
General Information
Standard status
Active
Size
8,600 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$11,230
Amenities
Central Air
3
Flat, Membrane
MU
10 Parking Spaces. On Site.
50x200
Outdoor Lights. Paved Road.
Building Details
Year Built
1907
Buildings
1
Tenancy
Multi
Listing Agency:
(503) 774-8893
Listed By:
Hanna Network
(503) 774-8893
Source:
Xome
Added: Apr 7
Changed: Aug 30
Last Checked: Aug 30 at 3:49PM
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 Hanna Network
Investment Insights
Based on property information with market context.
This 8,600-square-foot net-leased commercial property at 8535 N Lombard St includes occupied second-floor office space and additional unfinished area. The building dates to 1907 and has central air, a flat membrane roof, and an MU zoning designation. A pro forma cap rate over 8% is stated for the property.
The site includes a paved parking area behind the building with 10 on-site parking spaces. Outdoor lighting is also present, supporting access to the property after daylight hours. The lot measures 50x200, providing a defined commercial setting along N Lombard St in Portland.
The site includes a paved parking area behind the building with 10 on-site parking spaces. Outdoor lighting is also present, supporting access to the property after daylight hours. The lot measures 50x200, providing a defined commercial setting along N Lombard St in Portland.
Key Highlights
- 8,600‑square‑foot commercial building constructed in 1907
- Net leases and some leased second‑floor office space in place
- Unfinished second‑floor area remains for completion
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
$111,324
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
6.45%
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%
$2,226,480
$2.2M
Cap Rate 7%
$1,590,343
$1.6M
Cap Rate 9%
$1,236,933
$1.2M
Market Conditions
NOI Build-Up for 8,600 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
$196.1K $22.80/SF
− Vacancy
−$47.6K −$5.54/SF
EGI
$148.4K $17.26/SF
− OpEx
−$37.1K −$4.31/SF
NOI
$111.3K $12.94/SF
Area
Portland, 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%
$2,226,480
Cap Rate 7%
$1,590,343
Cap Rate 9%
$1,236,933
Alternative Uses
Best Use
Office B
$1.59M
$1.39M – $1.86M
NOI $111,324 @ 7.0% cap · market cap 6.45%
Second Best
Retail
$1.43M
$1.25M – $1.67M
NOI $100,233 @ 7.0% cap · market cap 5.81%
Theoretical Best
Office A
$2.42M
$2.11M – $2.82M
NOI $169,056 @ 7.0% cap · market cap 9.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
922
Businesses Nearby
Explore this area
Business Placement
Demographics for 97203, OR
33,763
Population
13,462
Households
2.5
Avg Household Size
34
Median Age
45%
College-Educated
90%
High-School Grad
10.8 sq mi
ZIP Area
3,126
Density / Sq Mi
$77,619
Median Household Income
$46,152
Median Earnings
$1,551
Median Rent
$468,600
Median Home Value
Market
Vacancy Rate% for Office in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Net leases are in place, with leased second-floor offices and additional unfinished area for future completion.
Where is this nnn property located?
The property is located at 8535 N LOMBARD St Unit 8535 Portland, OR.
What is the asking price?
The asking price for this property is $1,725,000.
What are key features of this property?
This property features: 8,600‑square‑foot commercial building constructed in 1907; Net leases and some leased second‑floor office space in place; Unfinished second‑floor area remains for completion
