Working for half price?

Most real estate investors I know consider themselves more savvy than average folks. And for many, they may be right. Over time, real estate returns can be better than stocks…and real estate profits can be partially or completely tax sheltered. But many investors only realize half of their profit potential. Ask a welder who earns $45 an hour if he would work just as happily at $20 an hour, and they would say: “Heck, no!” or something more colorful, meaning the same thing. But investors commonly do a similar thing.

Strategy makes the difference
SELL!: I interviewed principals of 2 large multifamily investment firms this week, one with “several thousand units”, the other with as many “as 7,500 apartment units”. One said, “We always get over half of our total profit generated from selling.” The other said, “Profits from selling generate as much as 60% of our Internal Rate of Return on investments.

HOLD!: A long-time friend of mine and housing investor used a strategy of saving up enough money and buying properties cash and never selling.

RESULTS: The “HOLD” strategy investor has now retired with a comfortable income if he lives within his means. One of the “SELL” investors was able to retire decades younger with generational wealth and enough profit to support numerous charities. Selling and redeploying assets allows real estate investors to maximize their gains. Many don’t realize just how much perodic selling improves their bottom lined.

SUMMARY: The goals, stragegies, and tactics investors use to meet their goals are  so varied and individual that investors are wise to use the best brokers, 1031 Accomodators, lenders, CPAs, and related resources. Rose City Commercial Real Estate is actively working with investors on multifamily acquistions of less than 10 units…and over 100 units. We have individualized suggested goals, tactics and stragegies for their respective needs.

Disciplined investors do well in markets where fundamentals matter more than hype.

Investing in Eugene, Oregon Commercial Real Estate in 2026: A Strategic Window for Smart Investors

If Portland is where the headlines are made, Eugene is where disciplined investors quietly build wealth.

In 2026, Eugene is not overheated. It is not collapsing either. It is a secondary market in transition, and that is exactly why smart investors should be paying attention.

When markets get noisy, I like places where fundamentals still matter. Eugene is one of those places. It is not a market that rewards lazy underwriting or blind optimism. It is a market that rewards patience, operational skill, and buying the right asset from the right seller.

A Different Kind of Opportunity Than Portland

Eugene moves to its own rhythm.

• Smaller deal sizes
• Less institutional competition
• More owner-operated properties
• More opportunities created by inefficiency than by hype

That matters in 2026. In a market where debt is more expensive and mistakes get punished faster, smaller and more local markets can offer better entry points than the big-city bidding wars investors got used to in the last cycle.

Eugene is not the place to chase a story. It is the place to execute a plan.

In Eugene, the best multifamily deals often come from better operations, not speculation.

The 2026 Eugene Backdrop

Eugene’s commercial real estate market is being shaped by the same broad forces affecting the rest of Oregon, but with a local twist.

• Interest rates remain elevated compared with the easy-money years
• Lenders are still cautious
• Smaller operators are feeling pressure
• Housing demand remains durable
• Education, health care, and local services continue to anchor the economy

The City of Eugene says the market needs nearly 26,000 additional homes over the next 20 years. That is a meaningful indicator for investors because it speaks directly to long-term housing demand. This is not a market with no need for product. It is a market with a persistent need for well-run product.

Lane County’s January 2026 unemployment rate was 5.3%, up from 4.5% a year earlier, and total nonfarm employment was down 1.1% year over year. That is not a collapse, but it does tell us the market is feeling pressure. Pressure creates motivated sellers. Motivated sellers create opportunity.

At the same time, Lane County is projected to add 10,900 jobs between 2024 and 2034, a 6% increase. That is exactly the kind of long-view data I like. Near-term stress. Long-term viability.

Why Eugene Still Works as an Investment Market

The University of Oregon remains one of Eugene’s core economic engines. Fall 2025 enrollment came in at 24,448 students. That is important not just for student housing, but for surrounding retail, services, medical demand, and investor confidence in the city’s staying power.

Eugene is not dependent on one shiny trend. It benefits from several durable demand drivers working together:

• University-related demand
• Health care employment
• Local and regional service businesses
• A steady renter base

That is why I view Eugene in 2026 as a selective opportunity market. It is not a market where everything works. It is a market where the right assets can work very well.

Flex and industrial space in secondary markets can offer steady income when bought with discipline.

Asset Class Breakdown: Where I Would Focus

Multifamily: Still the Core Play

If I am looking at Eugene in 2026, multifamily is still where I start.

Not because every apartment deal is good. They are not. But because Eugene still has a real need for housing, and because smaller multifamily properties in secondary markets are often owned by people who have not pushed rents, have not tightened expenses, or have simply grown tired of active ownership.

That creates the kind of opportunity I like best: value created through better operations.

• 10 to 50 units can be a strong target range
• Look for below-market rents
• Look for weak expense control
• Look for deferred maintenance you can quantify and solve

In this market, operational upside matters more than fantasy appreciation.

Industrial and Flex: Quiet Strength

Eugene’s industrial and flex properties are not glamorous, and that is part of the appeal.

Local businesses still need service bays, warehouse space, fabrication space, and practical buildings with parking and access. In a market like this, basic functionality is a strength.

You may not steal these assets, but if you buy them right, they can provide the kind of predictable income investors appreciate when the broader market is uncertain.

Office: Only with a Clear Plan

Office in Eugene may hold up better than some large urban cores, but I still would not drift into it casually.

Hybrid work changed demand. Older office properties with weak layouts or tired finishes can become long-term problems instead of opportunities.

If you are buying office in 2026, you should be able to answer three questions clearly:

• Why this location?
• Why this building?
• Why will tenants choose it over the competition?

If you cannot answer those questions quickly and convincingly, keep moving.

Retail: Neighborhood and Necessity Win

Retail in Eugene is a micro-location game.

The strongest plays tend to be neighborhood-oriented, service-based, and tied to daily-use demand. Food, medical-adjacent uses, convenience, and personal services generally make more sense than trend-chasing concepts.

Good retail in Eugene is not about flash. It is about relevance.

In Eugene retail, micro-location and tenant quality matter more than broad trends.

The Real Opportunity in 2026

The opportunity in Eugene right now is not finding some mythical perfect property.

It is finding properties where better ownership will materially improve performance.

• Owners facing refinancing pressure
• Tired landlords
• Properties with under-market rents
• Assets with weak management
• Buildings that need a practical, not heroic, repositioning plan

That is the kind of deal environment disciplined investors should like. Not because it is easy, but because it is understandable.

Financing Will Still Make or Break the Deal

In 2026, debt remains a major filter.

• Lower leverage than many buyers want
• Stricter underwriting
• More lender scrutiny on secondary markets and smaller assets

That means strong lender relationships matter. More equity matters. Deal structure matters. Buyers who need perfect financing to make a deal work are going to have a hard time.

My advice is simple: underwrite conservatively and leave room for reality.

How to Win in Eugene

If you want to invest in Eugene commercial real estate in 2026, I would focus on four things.

1. Focus on cash flow first. Appreciation is welcome, but it should not be your only plan.
2. Target inefficiency. The best value often comes from improving operations, not from predicting the future.
3. Be selective by asset class. Multifamily and practical industrial assets deserve the most attention. Office requires caution. Retail requires micro-market understanding.
4. Plan to hold. This is not the kind of market where short-term heroics should be your strategy.

Final Thought

Eugene in 2026 is not flashy. That is one of its strengths.

While other investors chase the loudest market, disciplined buyers can still find real opportunity here by buying well, operating better, and holding long enough to let the fundamentals work in their favor.

This is not a market for guessing. It is a market for strategy…and cash is king here more than ever!

Rick Bean
Rose City Commercial Real Estate

Frequently Asked Questions

Is Eugene, Oregon a good place to invest in commercial real estate in 2026?

Yes, but only for disciplined investors. Eugene is not a market where you can buy anything and expect it to work. What makes it attractive in 2026 is the combination of steady demand drivers—like the University of Oregon, healthcare, and local services—paired with less competition than larger markets like Portland.

The real opportunity comes from buying properties with operational upside. That might mean below-market rents, inefficient management, or deferred maintenance that can be corrected. If you focus on cash flow and long-term hold strategy, Eugene can be a very solid market.

What types of commercial properties perform best in Eugene?

Multifamily is still the most reliable asset class in Eugene because housing demand remains consistent and supply is constrained. Smaller apartment properties—typically in the 10 to 50 unit range—often provide the best combination of price point and upside potential.

Industrial and flex properties are also strong performers because they serve local businesses and tend to have stable tenant demand. Retail can work well in neighborhood locations with service-based tenants. Office properties require a much more selective approach and should only be considered when there is a clear plan for leasing and positioning the asset.

What is the biggest risk when investing in Eugene commercial real estate?

The biggest risk is overpaying based on unrealistic assumptions. In today’s market, higher interest rates and tighter lending mean that deals need to work based on current income, not projected upside alone.

Investors get into trouble when they assume rents will rise quickly, vacancies will stay low, or financing will remain easy. A more conservative approach is required in 2026. Underwrite with higher vacancy, realistic rent growth, and adequate reserves. If the deal still works under those conditions, you are in a much stronger position.

In short, the risk is not the market—it’s the assumptions behind the deal.

PICKING A PROPERTY MANAGEMENT COMPANY

There are two entities to vet here…1)The Property Management Company and, 2)The On-site Property Manager.  The Property Management Company decision will ensure that you have selected the resource that will be responsible for one of the most valuable assets you own. They will control all revenues from the asset, as well as paying the expenses and providing timely, accurate performance reports.

• Is there a training manual for Asset Managers, Site Managers, Leasing Specialists, Maintenance?
• At what number of units, what conditions do they recommend on site Managers?
  • On-site Maintenance?
  • Practices are changing as far as the number of units at which on-site management is required/recommended.
    • Some Portland, OR management companies now have up to 50 units without an on-site Manager.
    • Some states (CA for example) require on-site management for as few as 20 units.
• What software does the company use to track operations?
  • Can tenants pay their rent through the app?
  • Can tenants make maintenance requests through the app?
• Do they use cash or accrual in their accounting system?
• How do they market vacant apartments?
  • How effectively do they use Craigslist?
  • Do they support subscribing to apartment leasing aids like Rents.com, Apartments.com, etc.

• How do they market vacant apartments?
  • How often do they update/re-post Craigslist ads?
  • Do they subscribe to Rent.com, Apartments.com, Rentometer.com or other similar services?

• Ask them to estimate what the cost of being $50 below market is for a 50-unit property in this market? (Both from a cash flow and potential sale price viewpoint.)

• What is their recommended credit/criminal history research process?

• How do they charge for coordinating vendors?

• Do they recommend concessions?

• Do they have a formal client retention program?

PICKING ON-SITE PROPERTY MANAGERS

Selecting the property on-site Property Manager is important, too.  I remember being on the Acquisition Team for a $45,000,000 multifamily asset in Las Vegas.  The Seller recommended keeping the existing on-site person. The Buyer asked how much are they getting paid?  I think the answer was something like $35,000/year.  The Buyer said: I may keep her…but I can’t have someone in charge of a $45M apartment getting $3k a month. The Manager was kept, along with a new incentive program that would reward good profits handsomely.  Not all properties have enough units to warrant an on-site Manager.   In Oregon  on-site Management is not required at any preset number of units, other than good sense. Some of the items a good on-site Property Manager will know over time:

• Which apartments will comfortably fit a queen bed and nightstand and which wall is best for that?
• What nearby properties are the closest competition—and what their rents are?
• Where is the nearest ATM from the apartment? Restaurant, Dry Cleaners, Grocery Store?
• What Elementary, Middle, and High Schools do residents of the apartments go to—and how are they rated?
  • Are their private schools nearby?
• Does the Manager know the current rules/laws/regulations that apply to rent raises, Section 8 Tenants, evictions, etc.

They are all about the listings.

Our difference, our guarantee is that our team will speak personally with hundreds of buyers of properties like yours…(the people most likely to buy your property) to explain the opportunity your asset offers.

Quality deliverables and a campaign featuring direct contact with buyers means you will achieve your goals quicker…with less stress. That’s guaranteed.

 
Call 503-577-1034,email us at Sales@rosecitycre.com, or setup an appointment to choose Rose City Commercial Real Estate.

I owe Point Source Solutions, LLC a shoutout for the great work they recently completed for a Rose City Commercial Real Estate client. Hats off to Andy Klopfenstein, Jeff Jackman and the crew for a job well done. First some background.

I thought this listing was going to be the best deal I had ever worked on. Dream client…great to work with. In demand food production building. We mounted an aggressive,  multichannel marketing campaign and were under contract in a week at full price with a list of buyers with backup offers. Great buyer with solid credit, great Buyer Broker, happy lender…nothing could possibly go wrong! To paraphrase Johnny Carson: “Not so, contamination breath!”

While performing the Phase I (written questionaire) Report it was disclosed the property had been a gas station decades ago. That disclosure led to Phase II testing…we brought in Point Source Solutions. While drilling they discovered small amounts of hydrocarbon contaminates. That led to drilling for Delineation Studies 1, 2, and 3. Each time Oregon DEQ asked for a new scope of work to assess the situation PSS responded quickly with a new scope of work, bids and completed testing on an expedited basis. Last week their efforts resulted in the Oregon-DEQ issuing an NFA (No-Further-Action) letter for the project. The whole process took about a year. Without the coordination and focused efforts of Point Source Solutions we would still be testing.

Rose City Commercial Real Estate maintains a list of valued resources for our customers. I’ve added Point Source Solutions for evironmental challenges…because using them really made a difference.

Equity Advantage is celebrating 30 years of 1031 Exchange excellence this year.  David and Tom Moore were exchange pioneers back in the days when 1031 Exchanges weren’t particularly well known…and the IRS had only recently codified the current process. We recommend different banks on acquisitions based on the lending institutions’ strengths….but we always recommend Equity Advantage.  It’s critical that the Commercial Broker identify properties that meet the investor’s criteria, but that’s a beginning, not the end. Depending on the deal, the role played by the inspector, lawyer, CPA, environmental testing contractor, and other resources can have increased (or diminished) importance…but the 1031 Exchange Accommodator is always critical.

One of the errors investors make is assuming Exchange Accomodation is a commodity. That’s simply incorrect.-Rick M. Bean

One of our investors told us that choosing RCCRE was one of the best decisions they had made. We worked hard for them…but part of the success they were so pleased about was the way Equity Advantage structured their 1031 Exchange. The client was able to further reduce the impact of taxes and pay off hundreds of thousands of long-term debts. Even sophisticated investors who have completed dozens of 1031 Exchanges aren’t aware of some of the ways Equity Advantage employs to lower tax impacts and increase profitability.

We believe that Equity Advantage is the advantage 1031 Exchange investors need and deserve.

PRO TIP: Visit https://www.1031exchange.com/1031-exchange-resources/  for information. classes, resources, how to set up a self-directed IRA, and more.

RECOMMENDATION DISCLOSURE: Rose City Commercial Real Estate recommends “best in their field” professionals, including Equity Advantage, but does not solicit, nor accept rewards of any kind. We express our opinions solely for the benefit of existing and potential future clients.

MORE: If you desire assistance with commercial real estate opportunities…or you just want information on which investment resources we recommend, contact us at (503)577-1034, or sales@rosecitycre.com.

For many, the best way out of the problems caused by the COVID-19 Recession is to create their own job by embracing their entrepreneurial spirit. We were stunned to find out just how affordable user/owner real estate is right now. The SBA (Small Business Administration) 504 Loan option allows businesses to put only 10% down..preserving precious capital for labor, wares, utilities, etc.

Conventional Loan Advantage:
Buying a $1,200,000 building with conventional financing would require a 20% downpayment ($240,000) with the balance being financed with 4.5% interest on the balance, amortized over 25 years. Monthly payments for principal and interest would be $5,336/month. Advantage: Fantastic affordability due to low-interest rates.

SBA 504 Loan Advantage:
Doing the same deal with a 504 SBA Loan would require a 10% downpayment ($120,000) with 50% of the purchase price being financed by a conventional lender at 4.5% interest, and 40% of the total being an SBA Loan at 2.6% interest. The combined principal and interest would be $5,513/month. Advantage: for only an additional $177/month…this option would cut the downpayment in half.  That $120,000 downpayment reduction will be welcome as our business grows and we need our cash reserves.

A Picture is Worth…
To demonstrate the above example, I’ve included a graphic provided by Eric Bergeson, Vice President of Key Bank. He is a Senior SBA Specialist, and a great resource for financing owner/user real estate…and more. He’s available at (503)353-2126.

If you want to be a genius in 5 years, make wise commercial real estate investments now. If you want a valued resource to help you reach your goals…contact Rose City Commercial Real Estate: (503)577-1034, or rick@rosecitycre.com.

Notes:

1. Rose City Commercial Real Estate recommends resources based solely on: A.) Their reputation amongst industry pros, and/or B.) Our personal experiences. etc.
2. There is no common ownership between Rose City Commercial Real Estate and recommended resources.
3. We do not request, nor do we accept referral fees from recommended lenders, inspectors, management companies, and other related resources. That way you know there is no conflict of interest.

FRIENDS DON’T LET FRIENDS…MANAGE THEIR OWN APARTMENTS!

Friendless (smart folks) shouldn’t do so, either! I feel that using an independent third party is the only way. “Managing the Manager” is the unsexy, often overlooked way to maximize profits from operating multifamily assets. One of the long-time challenges of Multifamily Property Management is that Property Management companies are almost always paid on Gross Income. It takes considerably more time, effort and tenaciousness to keep a property rented a full market.  For half the work… Being $50 or more a month below the market pays the management company darn near as much. Admittedly $50 is not a huge sum…around what you would pay for a nice lunch at the Chart House, or Salty’s Restaurant. But on your 25-unit multifamily asset that would reduce Monthly Cash Flow by $1,250.  Per month. But much worse…it would reduce the value at time of sale by $300,000! Staying on top of the Property Manager is a must for optimizing profits.

PICKING A PROPERTY MANAGEMENT COMPANY

There are two entities to vet here…1)The Property Management Company and, 2)The On-site Property Manager.  The Property Management Company decision will ensure that you have selected the resource that will be responsible for one of the most valuable assets you own. They will control all revenues from the asset, as well as paying the expenses and providing timely, accurate performance reports.

• Is there a training manual for Asset Managers, Site Managers, Leasing Specialists, Maintenance?

• At what number of units, what conditions do they recommend on site Managers?
  • On-site Maintenance?
  • Practices are changing as far as the number of units at which on-site management is required/recommended.
    • Some Portland, OR management companies now have up to 50 units without an on-site Manager.
    • Some states (CA for example) require on-site management for as few as 20 units.

• What software does the company use to track operations?
  • Can tenants pay their rent through the app?
  • Can tenants make maintenance requests through the app?

• Do they use cash or accrual basis in their accounting system?

• How do they market vacant apartments?
  • How effectively do they use Craigslist?
  • Do they support subscribing to apartment leasing aids like Rents.com, Apartments.com, etc.

• Ask them to estimate what the cost of being $50 below market is for a 50-unit property in this market? (Both from a cash flow and potential sale price viewpoint.)

• What is their recommended credit/criminal history research process?

• How do they charge for coordinating vendors?

• Do they recommend concessions?

• Do they have a formal client retention program?

PICKING ON-SITE PROPERTY MANAGERS

Selecting the property on-site Property Manager is important, too.  I remember being on the Acquisition Team for a $45,000,000 multifamily asset in Las Vegas.  The Seller recommended keeping the existing on-site person. The Buyer asked how much are they getting paid?  I think the answer was something like $35,000/year.  The Buyer said: I may keep her…but I can’t have someone in charge of a $45M apartment getting $3k a month. The Manager was kept, along with a new incentive program that would reward good profits handsomely.  Not all properties have enough units to warrant an on-site Manager.  I think CA has the lowest threshold…16 units.  In Oregon I’m not aware of any state required level at which on-site Management is required, other than good sense. Some of the items a good on-site Property Manager will know over time:

• Which apartments will comfortably fit a queen bed and nightstand and which wall is best for that?
• What nearby properties are the closest competition—and what their rents are?
• Where is the nearest ATM from the apartment? Restaurant, Dry Cleaners, Grocery Store?
• What Elementary, Middle, and High Schools do residents of the apartments go to—and how are they rated?
  • Are their private schools nearby?
• Does the Manager know the current rules/laws/regulations that apply to rent raises, Section 8 Tenants, evictions, etc.

REMEMBER:

Its much easier for a 3^rd party manager to raise rents than it is for the owner to tell his tenants the same thing.  Managers tend to come across as “doing their job” whereas an owner raising the rent the same amount may appear as a “greedy slumlord”.

Recommendations:

If you need a recommendation for your property management resource, contact us at (503)-577-1034, or: sales@rosecitycre.com.  Your bottom line will thank you!

Improvement!

Rose City Commercial Real Estate is pleased to report that the Portland multifamily market is experiencing a significant increase in the availability of good multifamily properties for sale.  Just a year ago some of our multifamily Sellers elected high quality STNL (Single Tenant Net Lease) assets for their 1031 Exchange second legs…because there simply were no good multifamily assets available.  Rose City Commercial Real Estate’s marketing was focused exclusively on finding “off-market-but available” properties.  Now First Leg Sellers who become Second Leg Buyers have enough properties to choose from that they are much more likely to find an asset that meets suits their acquisition criteria closely.  I recently saw 7 multifamily properties listed in a single day!

The Change

One year ago there were only 15 or 20 multifamily properties available in the area. Contrast that with today:  within a 30 mile radius of our Lake Oswego office there were 67 multifamily properties for sale from $1,000,000 to $7,500,000:

57 existing properties

5 under construction

5 in the planning/pre-construction phase.

What It Means

With proper planning and assistance apartment owners can sell current assets and be in great shape to identify a Second Leg Property from the properties being marketed.  It also means if you want to expand your portfolio it makes sense to work with a knowledgeable Buyer Broker.

For more information, contact Sales@rosecitycre.com, or call Rick Bean at (503)577-1034.