Three-Story Multi-Tenant Office
For Sale
Contact for pricing
925-935 Commercial St SE, Salem, OR 97302
Three-story, multi-tenant office building with ample on-site parking and access from two streets, zoned Mixed-Use I.
Property Size27,748 SF
Lot Size1.15 Acres
Price / SF$219.84
Days on Market87
Property Features for 925-935 Commercial St SE
General Information
Standard status
Active
Size
27,748 SF
Class
B
Lot size
1.15 Acres
Property subtype
Office
Zoning
Mixed-Use I
Occupancy
70%
Investment Type
Stabilized
Additional Details
Cap Rate
6.5%
Road Access
Yes
Building Details
Stories
3
Tenancy
Multi
Listing Agency:
Hancock Real Estate
Listed By:
Terry Hancock · License #OR 200110013
(503) 371-1234
Source:
Crexi
Added: Jun 11
Changed: Aug 26
Last Checked: Aug 30 at 4:36PM
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 Hancock Real Estate
Investment Insights
Based on property information with market context.
This three-story, multi-tenant office building offers a professionally managed mix of suite sizes and configurations designed for professional office users. The property totals 27,748 square feet and is presented as an office investment offering at appraised value.
The building sits on 1.15 acres and provides ample on-site parking. Access is available from both Commercial Street and Saginaw Street, and the property is zoned Mixed-Use I.
The offering is structured for tenants and investors seeking a managed, multi-suite office asset with street access from two points and parking on site.
The building sits on 1.15 acres and provides ample on-site parking. Access is available from both Commercial Street and Saginaw Street, and the property is zoned Mixed-Use I.
The offering is structured for tenants and investors seeking a managed, multi-suite office asset with street access from two points and parking on site.
Key Highlights
- Three‑story, multi‑tenant 27,748 SF office building
- Reported 6.5% cap rate and offered at appraised value (per PublicRemarks)
- Professionally managed range of suite sizes and configurations for professional office users
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
$382,090
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
6.26%
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%
$7,641,800
$7.6M
Cap Rate 7%
$5,458,429
$5.5M
Cap Rate 9%
$4,245,444
$4.2M
Market Conditions
NOI Build-Up for 27,748 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
$599.4K $21.60/SF
− Vacancy
−$89.9K −$3.24/SF
EGI
$509.5K $18.36/SF
− OpEx
−$127.4K −$4.59/SF
NOI
$382.1K $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%
$7,641,800
Cap Rate 7%
$5,458,429
Cap Rate 9%
$4,245,444
Alternative Uses
Best Use
Office B
$5.46M
$4.78M – $6.37M
NOI $382,090 @ 7.0% cap · market cap 6.26%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.37M
$6.45M – $8.60M
NOI $515,713 @ 7.0% cap · market cap 8.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,543
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-story, multi-tenant office building with ample on-site parking and access from two streets, zoned Mixed-Use I.
Where is this office building located?
The property is located at 925-935 Commercial St SE Salem, OR.
What is the asking price?
The asking price for this property is $6,100,000.
What are key features of this property?
This property features: Three‑story, multi‑tenant 27,748 SF office building; Reported 6.5% cap rate and offered at appraised value (per PublicRemarks); Professionally managed range of suite sizes and configurations for professional office users
