Three-Story Office
For Sale
$2,100,000
109-40 W Brown Rd, Mesa, AZ 85201
Pristine three-story office building with a finished basement and separate building, plus two gated parking areas with some covered spaces.
Property Size9,644 SF
Price / SF$217.75
Days on Market316
Property Features for 109-40 W Brown Rd
General Information
Standard status
Active
Size
9,644 SF
Taxes and HOA fees
Annual Taxes
$10,656
Listing Agency:
ProSmart Realty
(480) 540-2213
Listed By:
Melanie Tovar · License #SA684969000
(480) 784-7365
Source:
Exprealty
Added: Oct 27, 2025
Changed: Aug 20
Last Checked: Sep 6 at 1:53PM
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 ProSmart Realty
Investment Insights
Based on property information with market context.
The property consists of a three-story office building with a finished basement, along with a separate building. The two-gated parking setup includes some covered spaces, supporting convenient daily access for occupants and visitors. Public remarks indicate the property is in pristine condition with no deferred maintenance.
Conveniently located for access to downtown Mesa, the site is readily reached from SR 202 and US 60 via Country Club Drive.
Overall, this is a well-maintained office-oriented asset with an established parking arrangement and multi-building configuration designed to support business use.
Conveniently located for access to downtown Mesa, the site is readily reached from SR 202 and US 60 via Country Club Drive.
Overall, this is a well-maintained office-oriented asset with an established parking arrangement and multi-building configuration designed to support business use.
Key Highlights
- 10,000 SF three‑story office building with a finished basement
- Pristine condition with no deferred maintenance reported
- Separate building on the property
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
$130,064
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
6.19%
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%
$2,601,280
$2.6M
Cap Rate 7%
$1,858,057
$1.9M
Cap Rate 9%
$1,445,156
$1.4M
Market Conditions
NOI Build-Up for 9,644 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
$214.1K $22.20/SF
− Vacancy
−$40.7K −$4.22/SF
EGI
$173.4K $17.98/SF
− OpEx
−$43.4K −$4.50/SF
NOI
$130.1K $13.49/SF
Area
ZIP 85201
Vacancy
19.00%
Lease Rate
$22.20 /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%
$2,601,280
Cap Rate 7%
$1,858,057
Cap Rate 9%
$1,445,156
Alternative Uses
Best Use
Office B
$1.86M
$1.63M – $2.17M
NOI $130,064 @ 7.0% cap · market cap 6.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.50M
$2.19M – $2.92M
NOI $174,981 @ 7.0% cap · market cap 8.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
865
Businesses Nearby
Explore this area
Business Placement
Demographics for 85201, AZ
51,187
Population
23,099
Households
2.2
Avg Household Size
33
Median Age
27%
College-Educated
87%
High-School Grad
9.4 sq mi
ZIP Area
5,445
Density / Sq Mi
$63,725
Median Household Income
$40,067
Median Earnings
$1,349
Median Rent
$292,600
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 - Pristine three-story office building with a finished basement and separate building, plus two gated parking areas with some covered spaces.
Where is this office building located?
The property is located at 109-40 W Brown Rd Mesa, AZ.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: 10,000 SF three‑story office building with a finished basement; Pristine condition with no deferred maintenance reported; Separate building on the property
