Updated Professional Office
For Sale
$724,900
856 NE 7th Street, Grants Pass, OR 97526
General Commercial zoning accommodates professional, medical, service, and other business uses.
Property Size2,120 SF
Price / SF$341.93
Days on Market270
Property Features for 856 NE 7th Street
General Information
Standard status
Active
Size
2,120 SF
Property subtype
General Commercial
Zoning
General Commercial
Taxes and HOA fees
Annual Taxes
$3,975
Amenities
Central Air
3
Tile, Laminate, Carpet
Composition
Parking.
Asphalt, Driveway, Lot.
0.25999999046325684
Building Details
Year Built
1936
Year Renovated
2010
Stories
2
Listing Agency:
Realty Executives Southern Oregon
(541) 660-5195
Listed By:
Chris Barnett · License #200003074
(541) 660-5195
Source:
Xome
Added: Dec 4, 2025
Changed: Aug 30
Last Checked: Aug 31 at 12:59PM
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 Realty Executives Southern Oregon
Investment Insights
Based on property information with market context.
This 2,120-square-foot office building at 856 NE 7th Street in Grants Pass was built in 1936 and remodeled and fully updated in 2010. The property is currently configured for professional office operations, with central air and a mix of tile, laminate, and carpet flooring. On-site parking is provided through an asphalt driveway and lot, and the site encompasses approximately 0.26 acres.
General Commercial zoning supports a broad range of business applications identified for the property, including medical or dental office, legal, accounting, insurance, real estate, consulting, call center, administrative, retail, service, technology, training, and creative workspace uses. The existing office configuration can support current operations while allowing future reconfiguration.
General Commercial zoning supports a broad range of business applications identified for the property, including medical or dental office, legal, accounting, insurance, real estate, consulting, call center, administrative, retail, service, technology, training, and creative workspace uses. The existing office configuration can support current operations while allowing future reconfiguration.
Key Highlights
- 2,120 SF office building on approximately 0.26 acres
- Remodeled and fully updated in 2010
- General Commercial zoning
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
$24,174
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
3.33%
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%
$483,480
$483.5K
Cap Rate 7%
$345,343
$345.3K
Cap Rate 9%
$268,600
$268.6K
Market Conditions
NOI Build-Up for 2,120 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
$35.6K $16.80/SF
− Vacancy
−$3.4K −$1.60/SF
EGI
$32.2K $15.20/SF
− OpEx
−$8.1K −$3.80/SF
NOI
$24.2K $11.40/SF
Area
Josephine County, OR
Vacancy
9.50%
Lease Rate
$16.80 /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%
$483,480
Cap Rate 7%
$345,343
Cap Rate 9%
$268,600
Alternative Uses
Best Use
Office B
$345.3K
$302.2K – $402.9K
NOI $24,174 @ 7.0% cap · market cap 3.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$480.7K
$420.6K – $560.8K
NOI $33,648 @ 7.0% cap · market cap 4.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,776
Businesses Nearby
Explore this area
Business Placement
Demographics for 97526, OR
36,561
Population
15,987
Households
2.3
Avg Household Size
47
Median Age
20%
College-Educated
91%
High-School Grad
140.7 sq mi
ZIP Area
260
Density / Sq Mi
$57,103
Median Household Income
$35,685
Median Earnings
$1,076
Median Rent
$379,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - General Commercial zoning accommodates professional, medical, service, and other business uses.
Where is this office building located?
The property is located at 856 NE 7th Street Grants Pass, OR.
What is the asking price?
The asking price for this property is $724,900.
What are key features of this property?
This property features: 2,120 SF office building on approximately 0.26 acres; Remodeled and fully updated in 2010; General Commercial zoning
