Auto Shop with Paint
For Sale
$850,000
8705 SE Foster Rd, Portland, OR 97266
CM2-zoned automotive property includes business operations, a professionally installed paint booth, and painting, welding, and framing equipment.
Property Size2,768 SF
Lot Size0.19 Acres
Price / SF$307.08
Days on Market49
Property Features for 8705 SE Foster Rd
General Information
Standard status
Active
Size
2,768 SF
Lot size
0.19 Acres
Zoning
CM2
Site & Location
Highway Access
Yes
Road Access
Yes
Fenced Yard
Yes
Additional Details
Business Included
Yes
Building Details
Year Built
1948
Listing Agency:
Kelly Right Real Estate of Portland, LLC
(503) 793-5478
Listed By:
Youssef Fransis
Source:
Wyndeekono
Added: Jul 12
Changed: Aug 29
Last Checked: Aug 25 at 5:52AM
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 Kelly Right Real Estate of Portland, LLC
Investment Insights
Based on property information with market context.
This 2,768-square-foot auto body shop occupies a fenced 0.19-acre corner site and includes the real estate, operating business, and equipment. A new paint booth was professionally installed, with additional tools and equipment for painting, welding, and framing. The property was built in 1948 and is zoned CM2.
Located at the corner of SE Foster Road and 87th Avenue, the site is near the 205 freeway. The secured lot can accommodate over 8 average-size vehicles, with additional parking available on the street and driveway. The combination of an established automotive operation, specialized equipment, and on-site parking supports continued auto body use.
Located at the corner of SE Foster Road and 87th Avenue, the site is near the 205 freeway. The secured lot can accommodate over 8 average-size vehicles, with additional parking available on the street and driveway. The combination of an established automotive operation, specialized equipment, and on-site parking supports continued auto body use.
Key Highlights
- 2,768‑square‑foot auto body shop on a fenced 0.19‑acre lot
- Real estate, business, and equipment included in the sale
- New professionally installed paint booth
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
$32,261
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
3.80%
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%
$645,220
$645.2K
Cap Rate 7%
$460,871
$460.9K
Cap Rate 9%
$358,456
$358.5K
Market Conditions
NOI Build-Up for 2,768 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
$49.8K $18.00/SF
− Vacancy
−$3.7K −$1.35/SF
EGI
$46.1K $16.65/SF
− OpEx
−$13.8K −$5.00/SF
NOI
$32.3K $11.66/SF
Area
Portland, OR
Vacancy
7.50%
Lease Rate
$18.00 /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%
$645,220
Cap Rate 7%
$460,871
Cap Rate 9%
$358,456
Alternative Uses
Best Use
Retail
$460.9K
$403.3K – $537.7K
NOI $32,261 @ 7.0% cap · market cap 3.80%
Second Best
Industrial
$248.2K
$217.2K – $289.6K
NOI $17,373 @ 7.0% cap · market cap 2.04%
Theoretical Best
Office A
$777.3K
$680.2K – $906.9K
NOI $54,413 @ 7.0% cap · market cap 6.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
788
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97266, OR
36,095
Population
13,863
Households
2.6
Avg Household Size
37
Median Age
29%
College-Educated
85%
High-School Grad
6.1 sq mi
ZIP Area
5,917
Density / Sq Mi
$71,791
Median Household Income
$39,856
Median Earnings
$1,532
Median Rent
$420,800
Median Home Value
Market
Vacancy Rate% for Retail in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Auto shop - CM2-zoned automotive property includes business operations, a professionally installed paint booth, and painting, welding, and framing equipment.
Where is this auto shop located?
The property is located at 8705 SE Foster Rd Portland, OR.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 2,768‑square‑foot auto body shop on a fenced 0.19‑acre lot; Real estate, business, and equipment included in the sale; New professionally installed paint booth
