Fenced Auto Body
For Sale
$850,000
8705 SE FOSTER Rd, Portland, OR 97266
CommercialSale, Portland, OR
Property Size2,768 SF
Lot Size0.19 Acres
Price / SF$307.08
Days on Market48
Property Features for 8705 SE FOSTER Rd
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CM2
Directions
SE 87th X Foster Rd
Subdivision
_143
Standard status
Active
APN
R231152
Size
2,768 SF
Lot size
0.19 Acres
Taxes and HOA fees
Tax Description
ORPHA PK, BLOCK 2, LOT 1 EXC PT IN STS, LOT 2
Tax Annual Amount
3574
Legal Description
ORPHA PK, BLOCK 2, LOT 1 EXC PT IN STS, LOT 2
Building Details
Year built
1948
Building materials
Frame, MetalFrame
Listing Agency:
Kelly Right Real Estate of Portland, LLC
(503) 719-6056
Listed By:
Youssef Fransis
(503) 793-5478
Added: Jul 9
Changed: Aug 25
Last Checked: Aug 25 at 5:06AM
MLS# 557578406
Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This auto body operation occupies a 2,768-square-foot building on a fenced 0.19-acre parcel. The offering combines the real estate, business, and shop equipment, including a new paint booth along with painting, welding, and framing tools. Frame and metal-frame construction dates to 1948, and the property carries CM2 zoning.
The facility is positioned at the corner of SE Foster Road and SE 87th Avenue, near the I-205 freeway. The enclosed lot can accommodate over 8 average-size vehicles, with additional street and driveway parking identified. The property presents an automotive operating site with its business components, equipment, and real estate included together.
The facility is positioned at the corner of SE Foster Road and SE 87th Avenue, near the I-205 freeway. The enclosed lot can accommodate over 8 average-size vehicles, with additional street and driveway parking identified. The property presents an automotive operating site with its business components, equipment, and real estate included together.
Key Highlights
- 2,768‑square‑foot auto body shop
- Fenced 0.19‑acre lot
- CM2 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
$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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Robs Roadside service
- Big Body Towing Auto Repair & Service — SE Ogden St, Portland, OR 97206
- J & R Equipment and Automotive Repair
- Brakes Master
- Truck Fiix Inc - Semi Truck Maintenance, Fix & Repair — 6400 SE 101st Ave #1a, Portland, OR 97266
Frequently Asked Questions
What type of property is this?
Auto shop - CM2-zoned property includes the business, real estate, and shop 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; Fenced 0.19‑acre lot; CM2 zoning
