Central Eastside Commercial
For Sale
Contact for pricing
324 SE Grand Ave, Portland, OR 97214
Prime location with versatile zoning and development potential.
Property Size18,000 SF
Price / SF$194.44
Days on Market1029
Property Features for 324 SE Grand Ave
General Information
Standard status
Active
Size
18,000 SF
Property subtype
Retail
Building Details
Year Built
1925
Listing Agency:
Cascade Commercial Real Estate
Listed By:
Todd DeNeffe · License #OR
Source:
Crexi
Added: Nov 7, 2023
Changed: Jul 6
Last Checked: Aug 29 at 1:52AM
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 Cascade Commercial Real Estate
Investment Insights
Based on property information with market context.
Located in Portland's Central Eastside, this property offers exposure to over 25,000 vehicles daily on SE Grand Avenue. The building features a 9,000-square-foot main level and a 9,000-square-foot usable warehouse basement, both accessible via grade loading doors. Ceiling heights range from 12 to 14 feet on the main floor and 9 feet in the basement. The EX (Employment) zoning allows for a range of uses, including retail, light industrial, and residential. The property is strategically located with access to I-5 and I-84, as well as bridges to downtown and Northwest Portland, and is along the Portland streetcar line. An adjacent 8,000-square-foot parking lot can accommodate up to 20 vehicles and offers further development potential. Two adjoining properties are available for acquisition, potentially giving a buyer control of over 3/4 of the block. The Central Eastside has seen over $1.2 billion in new property development and investment in the last decade, resulting in 1 million square feet of new or converted office space and over 4,000 apartments, with another $500 million of projected new development in the coming years. The area is home to over 1,000 businesses and 20,000 employees and includes food and beverage establishments, entertainment venues, and creative office users involved in tech, design, and engineering.
Key Highlights
- Two‑level building with 18,000 sq ft total and grade loading doors to both levels.
- 8,000 sq ft adjacent parking lot accommodating up to 20 vehicles with development potential.
- Excellent exposure with high traffic volume on SE Grand Avenue.
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
$209,790
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
5.99%
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%
$4,195,800
$4.2M
Cap Rate 7%
$2,997,000
$3.0M
Cap Rate 9%
$2,331,000
$2.3M
Market Conditions
NOI Build-Up for 18,000 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
$324.0K $18.00/SF
− Vacancy
−$24.3K −$1.35/SF
EGI
$299.7K $16.65/SF
− OpEx
−$89.9K −$5.00/SF
NOI
$209.8K $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%
$4,195,800
Cap Rate 7%
$2,997,000
Cap Rate 9%
$2,331,000
Alternative Uses
Best Use
Retail
$3.00M
$2.62M – $3.50M
NOI $209,790 @ 7.0% cap · market cap 5.99%
Second Best
Warehouse
$1.96M
$1.71M – $2.29M
NOI $137,186 @ 7.0% cap · market cap 3.92%
Theoretical Best
Office A
$5.05M
$4.42M – $5.90M
NOI $353,839 @ 7.0% cap · market cap 10.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,974
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 97214, OR
28,403
Population
15,948
Households
1.8
Avg Household Size
36
Median Age
67%
College-Educated
98%
High-School Grad
2.9 sq mi
ZIP Area
9,794
Density / Sq Mi
$86,879
Median Household Income
$55,643
Median Earnings
$1,628
Median Rent
$733,200
Median Home Value
Market
Vacancy Rate% for Industrial in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Prime location with versatile zoning and development potential.
Where is this storefront property located?
The property is located at 324 SE Grand Ave Portland, OR.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Two‑level building with 18,000 sq ft total and grade loading doors to both levels.; 8,000 sq ft adjacent parking lot accommodating up to 20 vehicles with development potential.; Excellent exposure with high traffic volume on SE Grand Avenue.
