Mixed-Use Property on Corner
New
For Sale
$995,000
8827 SE Division ST, Portland, OR 97266
CM1 zoning supports office, retail, light industrial, multifamily, and residential uses.
Property Size3,900 SF
Lot Size0.21 Acres
Price / SF$255.13
Days on Market2
Property Features for 8827 SE Division ST
General Information
Standard status
Active
Size
3,900 SF
Lot size
0.21 Acres
Property subtype
Commercial
Zoning
CM1
Additional Details
Corner Location
Yes
Amenities
fencing
office
bathroom
Building Details
Year Built
1949
Buildings
1
Listing Agency:
Jmg - Jason Mitchell Group
Listed By:
Donna Roberts
(360) 844-3142
Source:
Donnarobertsgroup
Added: Sep 26
Last Checked: Sep 26 at 5:33AM
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 Jmg - Jason Mitchell Group
Investment Insights
Based on property information with market context.
A freestanding 3,900-square-foot commercial building occupies a 0.21-acre corner parcel at SE 89th Ave and SE Division St. The property includes fencing, an office, and a bathroom. Improvements include a 600-amp electrical system with 3-phase panels, updated plumbing, and a roof installed in 2020; the building dates to 1949.
CM1 – Commercial Mixed Use 1 zoning allows office, retail, light industrial, multifamily, and residential uses. The site is within walking distance of a college, restaurants, shops, and major retail.
CM1 – Commercial Mixed Use 1 zoning allows office, retail, light industrial, multifamily, and residential uses. The site is within walking distance of a college, restaurants, shops, and major retail.
Key Highlights
- 3,900‑square‑foot freestanding commercial building
- 0.21‑acre corner parcel at SE 89th Ave and SE Division St
- CM1 – Commercial Mixed Use 1 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
$52,650
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
5.29%
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%
$1,053,000
$1.1M
Cap Rate 7%
$752,143
$752.1K
Cap Rate 9%
$585,000
$585.0K
Market Conditions
NOI Build-Up for 3,900 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
$93.6K $24.00/SF
− Vacancy
−$9.4K −$2.40/SF
EGI
$84.2K $21.60/SF
− OpEx
−$31.6K −$8.10/SF
NOI
$52.7K $13.50/SF
Area
Portland, OR
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,053,000
Cap Rate 7%
$752,143
Cap Rate 9%
$585,000
Alternative Uses
Best Use
Mixed Use
$752.1K
$658.1K – $877.5K
NOI $52,650 @ 7.0% cap · market cap 5.29%
Second Best
Retail
$649.4K
$568.2K – $757.6K
NOI $45,455 @ 7.0% cap · market cap 4.57%
Theoretical Best
Office A
$1.10M
$958.3K – $1.28M
NOI $76,665 @ 7.0% cap · market cap 7.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
849
Businesses Nearby
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - CM1 zoning supports office, retail, light industrial, multifamily, and residential uses.
Where is this mixed-use property located?
The property is located at 8827 SE Division ST Portland, OR.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 3,900‑square‑foot freestanding commercial building; 0.21‑acre corner parcel at SE 89th Ave and SE Division St; CM1 – Commercial Mixed Use 1 zoning
