JUST LISTED

PROPERTY OVERVIEW:
This fantastic professional/medical building located off Wallace Road in West Salem is available for sale and for lease. Great opportunity for an owner-user seeking approximately 6,023 rentable square feet of turnkey medical space for their own use while benefitting from the income generated by the other tenants of the building. There is excellent shared parking for the businesses in the building and their clients. This property is strategically located approximately one half mile to downtown Salem and within walking distance to Roth’s Fresh Market, numerous other restaurants and retail uses, across the street from the bus line and a short walk from the Courthouse Athletic Club and Wallace Marine Park.

LEASE OVERVIEW:
First floor professional medical space located off Wallace Road in West Salem. This 6,023 rentable square foot suite has a large waiting area, exam rooms, large procedure rooms, and break room. The available suite comes with shared parking for employees and clients. NNN’s estimated at $7.25/SF/YR and includes all utilities and common area maintenance.

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FEATURED LISTING

PROPERTY OVERVIEW:
Rare high-profile, retail endcap space on Commercial Street SE. Join Panera Bread, AT&T, Five Guys, Café Yumm, and Roth’s Fresh Market, in this concentrated retail area with South Salem’s highest traffic counts. Excellent parking, signage and visibility.

NO LOTTERY. NO CANNABIS. NO RESTAURANT.

SPACE AVAILABLE: 2,904 SF
LEASE RATE: $32/SF/YR, NNN
YEAR BUILT: 2007
NNN ESTIMATE: $7.33/SF ANNUALLY
ZONING: MU-1

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RECENT CLOSING

TRANSACTION OVERVIEW
First Commercial Real Estate is pleased to announce the sale of 10.76 acres on Baxter Road in South Salem. The site has been acquired by Neighborly Ventures, a local development firm committed to building high-quality, community-focused housing.

REPRESENTATION
This successful transaction was the result of a collaborative effort between teams with shared interests. Josh Kay worked closely with the family estate, guiding them through a complex and important sale process. On the buyer side, Jennifer Martin, CCIM, and Conrad Venti partnered with Neighborly Ventures, helping to coordinate an acquisition path, stewarding the project through negotiations and subsequent due diligence.

DEVELOPMENT PLANS
The Baxter Road site in South Salem will be the future home of a new multi-family residential community, thoughtfully designed and developed by Neighborly Ventures. With a focus on long-term livability and neighborhood compatibility, Neighborly approached the project with a strong commitment to community engagement and transparency. Their team actively collaborated with neighbors, City of Salem departments, vendors, and local stakeholders, fostering a process that was informative, responsive, and well-coordinated—laying the foundation for a project that will serve both new residents and the broader South Salem community.

COLLABORATION AND DUE DILIGENCE 
Bringing this transaction to the finish line required persistence, expertise, and a strong team effort. From navigating title and entitlement complexities to coordinating timelines with multiple parties, the process reflected a high level of professional collaboration and trust. The due diligence period was marked by thorough research, responsive communication, and mutual respect among all involved, ensuring that every detail was vetted and aligned with long-term development goals. It’s a testament to what’s possible when experienced professionals and committed stakeholders work together toward a shared vision.

MARKET INSIGHT

RETAIL VACANCY TRENDS IN
SALEM-KEIZER MARKET:
THEN AND NOW

During the Great Recession of 2008–2009, the Salem retail market faced a significant downturn, with investor-owned retail vacancy rates nearing 20%. This figure excluded key properties like the Willamette Town Center, Salem Center Mall, and large-format stores that own their own real estate. By early 2010, the Salem-Keizer market had 12 vacant big-box retail spaces (10,000 SF or larger). Remarkably, by the end of 2012, all but two had been backfilled. However, it came at a cost. Record-low lease rates were necessary to close many of these deals, which in turn suppressed asset values and delayed market expansion, as rents weren’t sufficient to justify new construction.

Fast forward fifteen years, and while there has been relatively little development of large-format retail over that period, the market is once again facing 11 vacancies of this size, some of which are the very same spaces that were dark in 2009.

So, what does this tell us? While the 2008 recession was largely a result of a capital market collapse and a dramatic pullback in consumer spending which left many retailers without the resources to expand or right-size their portfolios, today’s market is being shaped by different forces. Consumer caution is here again and is a major driver of current vacancy together with the ongoing shift toward e-commerce. Many traditional retail footprints have been repurposed into fulfillment hubs rather than brick-and-mortar shopping destinations, and when leases expire, those retailers are questioning the continued need for such a large store and/or questioning the need to be in such a high-profile location.

Adding to the complexity are local market fundamentals. Since reaching a pre-pandemic high, Salem has seen limited employment growth and relatively flat single-family residential development. Without meaningful job creation or population growth, the market lacks the foundational drivers that typically support retail expansion. As a result, retail demand in our trade area remains stagnant, and absorption of existing vacancies may continue to lag unless these broader economic forces shift.

By: Jennifer Martin, CCIM

COMMUNITY SPOTLIGHT

It’s time to celebrate Marion County and the community! Made in Marion is all about celebration. We celebrate the hard work of our youth. We honor those that serve. We celebrate with live music, wild rides, fun contests, great food, friends and fun.

WHERE?
Oregon State Fairgrounds
2330 17th ST NE
Salem, OR 97301

WHEN?
July 10–13, 2025

THURSDAY
Noon - 10pm
FRIDAY & SATURDAY
10am - 11pm
SUNDAY
10am - 6pm