Office Building with Income
For Sale
$8,000,000
8851 SANDY PARKWAY Unit BLDG A, Sandy, UT 84070
Office building for sale with owner/user and income opportunities.
Property Size29,870 SF
Price / SF$267.83
Days on Market882
Property Features for 8851 SANDY PARKWAY Unit BLDG A
General Information
Standard status
Active
Size
29,870 SF
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$42,004
Amenities
3
0.0x0.0x0.0
Listing Agency:
Colliers International Intermountain LLC (WASATCH)
(801) 947-8300
Listed By:
Jared Booth
(801) 573-5959
Source:
Xome
Added: Mar 23, 2024
Changed: Aug 12
Last Checked: Aug 21 at 5:07AM
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 Colliers International Intermountain LLC (WASATCH)
Investment Insights
Based on property information with market context.
This commercial real estate offers the advantages of being an owner/user, with occupancy options ranging from 2,686 to 8,932 rentable square feet, and potential for future expansion. The total building size is 29,870 rentable square feet. The property is located in a center-valley location off of I-15 at 90th South.
Key Highlights
- Owner/user opportunity with occupancy from 2,686 RSF to 8,932 RSF.
- Rental income from occupied spaces.
- Total building size of 29,870 RSF.
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
$433,085
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
5.41%
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%
$8,661,700
$8.7M
Cap Rate 7%
$6,186,929
$6.2M
Cap Rate 9%
$4,812,056
$4.8M
Market Conditions
NOI Build-Up for 29,870 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
$641.6K $21.48/SF
− Vacancy
−$64.2K −$2.15/SF
EGI
$577.4K $19.33/SF
− OpEx
−$144.4K −$4.83/SF
NOI
$433.1K $14.50/SF
Area
Salt Lake County, UT
Vacancy
10.00%
Lease Rate
$21.48 /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%
$8,661,700
Cap Rate 7%
$6,186,929
Cap Rate 9%
$4,812,056
Alternative Uses
Best Use
Office B
$6.19M
$5.41M – $7.22M
NOI $433,085 @ 7.0% cap · market cap 5.41%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$397.73M
$348.01M – $464.02M
NOI $27,841,104 @ 7.0% cap · market cap 348.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,092
Businesses Nearby
Explore this area
Business Placement
Demographics for 84070, UT
30,885
Population
12,212
Households
2.5
Avg Household Size
34
Median Age
36%
College-Educated
93%
High-School Grad
7.3 sq mi
ZIP Area
4,231
Density / Sq Mi
$79,414
Median Household Income
$44,013
Median Earnings
$1,578
Median Rent
$429,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Office building for sale with owner/user and income opportunities.
Where is this office building located?
The property is located at 8851 SANDY PARKWAY Unit BLDG A Sandy, UT.
What is the asking price?
The asking price for this property is $8,000,000.
What are key features of this property?
This property features: Owner/user opportunity with occupancy from 2,686 RSF to 8,932 RSF.; Rental income from occupied spaces.; Total building size of 29,870 RSF.
