Flex Space With Office
For Sale
Contact for pricing
112 E Cottonwood Ln, Phoenix, AZ 85048
Office and industrial space is identified within the property’s commercial configuration.
Property Size5,418 SF
Price / SF$152.27
Days on Market158
Property Features for 112 E Cottonwood Ln
General Information
Standard status
Active
Size
5,418 SF
Property subtype
Office, Industrial
Building Details
Year Built
1965
Listing Agency:
Commercial Properties Inc Tempe
(480) 214-1126
Listed By:
Sarge Glenn · License #AZ SA522625000
Source:
Crexi
Added: Mar 27
Changed: Aug 30
Last Checked: Aug 30 at 6:19AM
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 Commercial Properties Inc Tempe
Investment Insights
Based on property information with market context.
This 5,418-square-foot flex space property combines office and industrial areas in a commercial building constructed in 1965. The stated configuration aligns with industrial and manufacturing-oriented ownership needs, while the flex classification accommodates the property’s blended office and operational character.
Key Highlights
- 5,418 square feet of flex space
- Office and industrial configuration
- Constructed in 1965
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
$59,503
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
7.21%
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%
$1,190,060
$1.2M
Cap Rate 7%
$850,043
$850.0K
Cap Rate 9%
$661,144
$661.1K
Market Conditions
NOI Build-Up for 5,418 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
$104.0K $19.20/SF
− Vacancy
−$12.5K −$2.30/SF
EGI
$91.5K $16.90/SF
− OpEx
−$32.0K −$5.91/SF
NOI
$59.5K $10.98/SF
Area
Phoenix, AZ
Vacancy
12.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$1,190,060
Cap Rate 7%
$850,043
Cap Rate 9%
$661,144
Alternative Uses
Best Use
Flex RnD
$850.0K
$743.8K – $991.7K
NOI $59,503 @ 7.0% cap · market cap 7.21%
Second Best
Industrial
$486.9K
$426.0K – $568.0K
NOI $34,081 @ 7.0% cap · market cap 4.13%
Theoretical Best
Office A
$1.64M
$1.44M – $1.91M
NOI $114,881 @ 7.0% cap · market cap 13.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
38
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85048, AZ
34,524
Population
14,369
Households
2.4
Avg Household Size
42
Median Age
62%
College-Educated
98%
High-School Grad
10.1 sq mi
ZIP Area
3,418
Density / Sq Mi
$123,198
Median Household Income
$70,210
Median Earnings
$1,995
Median Rent
$538,500
Median Home Value
Market
Vacancy Rate% for Industrial in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Office and industrial space is identified within the property’s commercial configuration.
Where is this flex space located?
The property is located at 112 E Cottonwood Ln Phoenix, AZ.
What is the asking price?
The asking price for this property is $825,000.
What are key features of this property?
This property features: 5,418 square feet of flex space; Office and industrial configuration; Constructed in 1965
