Building Salem is a regular feature from Salem Reporter to highlight planned building projects around the city. Is there a building going up or demolition underway you’re curious about? Let us know by emailing [email protected].

Name: Grocery Outlet 

Project type: Retail 

Location: 3975 Commercial Street S.E. (Faye Wright neighborhood)

Cost: About $2 million for renovations

Description: A new Grocery Outlet location is expected to open up in a renovated 17,280 square foot storefront location in south Salem on Southeast Commercial Street by spring of 2025. 

The building, located at 3975 Commercial Street S.E. in the Southgate Shopping Center, has sat vacant for a number of years, but has found a new life with the arrival of Grocery Outlet. 

“For Grocery Outlet, and the community, it’s a well positioned south Salem location. It shifts a lot of the south Salem customers from having to go downtown, to a pretty rough area downtown, to the existing Grocery Outlet,” said Alex Rhoten, a principal broker with Coldwell Banker Commercial Mountain West Real Estate, who represented the landlords of the building. “Now you’ve got a great south Salem location. Easy access. It’s a winner. And it’s really good for the center (Southgate Shopping Center), because it’s been old and tired for years, and now it’s got rejuvenation frankly.” 

Grocery Outlet has two other Salem locations, one north of downtown at 299 D Street S.E., and one in northeast Salem at 2879 Lancaster Drive N.E.

The Southgate Shopping Center is owned by David Wyant and the Wyant family, who have been longtime property developers and retail store owners in Salem. It is also home to Northern Lights Theatre Pub. A second location of Bo & Vine burger restaurant opened there in recent months.

Rhoten said there is a new pizza shop opening in the shopping center at the beginning of 2025, and said there are other businesses interested in possibly moving into the shopping center as well. 

“We have people looking at both unspoken for spaces, but nothing nailed down. One is a former arcade and another is retail sales,” Rhoten said. 

Rhoten said Grocery Outlet will be leasing the building which is currently being renovated. He said Grocery Outlet invested millions into the renovation. 

“It’s a shaky retail world and frankly south Salem is kind of a bright shiny star with the Costco development and now with this rejuvenation with this Grocery Outlet center,” Rhoten said. “I think there is a lot of promise going on in south Salem.” 

August 2024 building statistics from the city of Salem

Multifamily building permits issued: 2 permits for 18 units

Total multifamily building permits issued from July 2023-June 2024: 33.5 permits for 356 units

New home permits issued: 28 permits, including 1 duplex and 1 quadplex

Total new home permits from July 2023-June 2024: 360

New commercial and industrial permits issued: 3

Total new commercial and industrial permits permits issued from July 2023-June 2024: 54.5

Contact reporter Joe Siess: [email protected] or 503-335-7790.

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Joe Siess is a reporter for Salem Reporter. Joe joined Salem Reporter in 2024 and primarily covers city and county government but loves surprises. Joe previously reported for the Redmond Spokesman, the Bulletin in Bend, Klamath Falls Herald and News and the Malheur Enterprise. He was born in Independence, MO, where the Oregon Trail officially starts, and grew up in the Kansas City area.