Oregon Coast Investment
For Sale
Contact for pricing
1118 SW Canyon Way, Newport, OR 97365
Bay and bridge view property with multiple development opportunities.
Property Size5,288 SF
Price / SF$312.03
Days on Market1951
Property Features for 1118 SW Canyon Way
General Information
Standard status
Active
Size
5,288 SF
Total Parking Spaces
21
Property subtype
Retail
Zoning
C-1 Commercial
Building Details
Year Built
2019
Stories
1
Tenancy
Single
Listing Agency:
Equity Plus Real Estate
(541) 270-2484
Listed By:
Brodie Becksted · License #OR
Source:
Crexi
Added: Apr 21, 2021
Changed: Aug 17
Last Checked: Aug 21 at 12:21PM
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 Equity Plus Real Estate
Investment Insights
Based on property information with market context.
This property presents an investment opportunity on the Oregon Coast, featuring views of the bay and bridge. The existing 5200 square foot building is complemented by a newly constructed covered patio. The upper parking lot provides 10 off-street parking spaces. Infrastructure has been recently installed in the lower parking lot, including underground water, sewer, and power, with individual pedestals to accommodate 7 food trucks or RVs. Conditional use approval has been granted for the property to operate as a food truck pod. The property is currently set up for a brewery or restaurant. A 2023 appraisal valued the property at $2,250,000.
Key Highlights
- Investment opportunity with conditional use approval for a 7‑space food truck/RV pod with new underground infrastructure (water/sewer/power).
- Bay and Bridge views on the Oregon Coast.
- Existing 5200 sq. ft. building currently set up for Brewery/Restaurant.
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
$54,997
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%
$1,099,940
$1.1M
Cap Rate 7%
$785,671
$785.7K
Cap Rate 9%
$611,078
$611.1K
Market Conditions
NOI Build-Up for 5,288 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
$76.1K $14.40/SF
− Vacancy
−$2.8K −$0.53/SF
EGI
$73.3K $13.87/SF
− OpEx
−$18.3K −$3.47/SF
NOI
$55.0K $10.40/SF
Area
Lincoln County, OR
Vacancy
3.70%
Lease Rate
$14.40 /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%
$1,099,940
Cap Rate 7%
$785,671
Cap Rate 9%
$611,078
Alternative Uses
Best Use
Specialty Retail
$785.7K
$687.5K – $916.6K
NOI $54,997 @ 7.0% cap · market cap 3.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.38M
$1.21M – $1.61M
NOI $96,550 @ 7.0% cap · market cap 5.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,411
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97365, OR
10,806
Population
6,026
Households
1.8
Avg Household Size
47
Median Age
31%
College-Educated
91%
High-School Grad
41.5 sq mi
ZIP Area
260
Density / Sq Mi
$60,736
Median Household Income
$30,963
Median Earnings
$1,155
Median Rent
$418,500
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Restaurant - Bay and bridge view property with multiple development opportunities.
Where is this restaurant located?
The property is located at 1118 SW Canyon Way Newport, OR.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Investment opportunity with conditional use approval for a 7‑space food truck/RV pod with new underground infrastructure (water/sewer/power).; Bay and Bridge views on the Oregon Coast.; Existing 5200 sq. ft. building currently set up for Brewery/Restaurant.
