Freestanding Office
New
For Sale
$849,000
875 Idylwood Dr SE, Salem, OR 97302
Commercial, Salem, OR
Property Size3,676 SF
Lot Size0.38 Acres
Price / SF$230.96
Days on Market1
Property Features for 875 Idylwood Dr SE
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
Salem MU-1
Parking
16
Standard status
Active
Size
3,676 SF
Lot size
0.38 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
9696
Building Details
Year built
1951
Roof type
Composition
Listing Agency:
REALTY ONE GROUP WILLAMETTE VALLEY
(503) 881-2313
Listed By:
KELLY CULVER
(503) 931-2565
Added: Aug 20
Last Checked: Aug 20 at 6:06PM
MLS# 844824
Copyright © 2026 Willamette Valley Multiple Listing Service. 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 freestanding office building contains 3,676 square feet across three levels and was built in 1951. The first floor offers up to 1,500 square feet for an owner-user, including reception, four offices or a conference room, a break room, and a restroom. The second floor is occupied by tenants, while private offices are available on the third floor. Business signage is already in place, and a new composition roof was installed in 2025.
The property includes 16 parking spaces and benefits from visibility from South Commercial and Sunnyside streets, with building access from the surrounding street network. Zoning is Salem MU-1, supporting the property's established office configuration.
The property includes 16 parking spaces and benefits from visibility from South Commercial and Sunnyside streets, with building access from the surrounding street network. Zoning is Salem MU-1, supporting the property's established office configuration.
Key Highlights
- 3,676 SF office building on three levels
- Up to 1,500 SF on the first floor for an owner‑user
- Four offices or conference room, reception, break room, and restroom
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
$50,619
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
5.96%
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%
$1,012,380
$1.0M
Cap Rate 7%
$723,129
$723.1K
Cap Rate 9%
$562,433
$562.4K
Market Conditions
NOI Build-Up for 3,676 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
$79.4K $21.60/SF
− Vacancy
−$11.9K −$3.24/SF
EGI
$67.5K $18.36/SF
− OpEx
−$16.9K −$4.59/SF
NOI
$50.6K $13.77/SF
Area
Salem, OR
Vacancy
15.00%
Lease Rate
$21.60 /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%
$1,012,380
Cap Rate 7%
$723,129
Cap Rate 9%
$562,433
Alternative Uses
Best Use
Office B
$723.1K
$632.7K – $843.7K
NOI $50,619 @ 7.0% cap · market cap 5.96%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$976.0K
$854.0K – $1.14M
NOI $68,321 @ 7.0% cap · market cap 8.05%
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
644
Businesses Nearby
Explore this area
Business Placement
Demographics for 97302, OR
39,776
Population
17,888
Households
2.2
Avg Household Size
41
Median Age
43%
College-Educated
95%
High-School Grad
23.5 sq mi
ZIP Area
1,693
Density / Sq Mi
$83,697
Median Household Income
$44,623
Median Earnings
$1,230
Median Rent
$415,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Three-level office property with tenant occupancy, private offices, signage, and convenient on-site parking.
Where is this office building located?
The property is located at 875 Idylwood Dr SE Salem, OR.
What is the asking price?
The asking price for this property is $849,000.
What are key features of this property?
This property features: 3,676 SF office building on three levels; Up to 1,500 SF on the first floor for an owner‑user; Four offices or conference room, reception, break room, and restroom
