Chandler Freestanding Commercial
For Sale
Contact for pricing
1151 W Ray Rd, Chandler, AZ 85224
Recently renovated commercial building on 2.167 acres in Chandler.
Property Size10,600 SF
Lot Size2.17 Acres
Price / SF$301.89
Days on Market162
Property Features for 1151 W Ray Rd
General Information
Standard status
Active
Size
10,600 SF
Class
B
Lot size
2.17 Acres
Property subtype
Special Purpose
Zoning
C-O
Building Details
Year Built
2001
Year Renovated
2023
Buildings
1
Listing Agency:
The Firm Real Estate
Listed By:
Amber Monaco · License #SA708280000
Source:
Crexi
Added: Mar 2
Changed: Aug 8
Last Checked: Aug 10 at 12:39PM
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 The Firm Real Estate
Investment Insights
Based on property information with market context.
This freestanding commercial building, located on Ray Road in Chandler, Arizona, presents an opportunity for owner-users, medical or educational operators, investors, or redevelopment. The 10,610 square foot building is situated on a 2.167-acre lot and has undergone recent capital improvements. These include a new roof installed in June 2023, a full LED lighting retrofit completed in June 2023, and new LVT flooring throughout the entire building installed in August 2023. The parking lot was recently refurbished and a full interior repaint was completed in August 2025. The property is fully ADA compliant and has security and alarm systems installed. The building also features a full commercial kitchen and a secured rear outdoor area with playground structures and a splash pad. The property is suitable for continued childcare use, educational facilities, medical or therapy uses, community services, or repositioning to alternative commercial applications. Positioned along Ray Road, the property benefits from approximately 30,000+ vehicles per day. The site is surrounded by residential neighborhoods, retail services, and employment centers, with convenient access to Loop 202. The property offers a combination of location, functional improvements, and immediate usability.
Key Highlights
- Fully renovated with over $250,000 in recent upgrades, including a new roof, LED lighting, LVT flooring, interior repaint, and refurbished parking lot.
- Delivered vacant, offering exceptional flexibility for owner‑user, medical, educational, investor lease‑up, or redevelopment strategy.
- Prime location on Ray Road with high visibility (30,000+ vehicles per day) and convenient access to Loop 202.
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
$166,857
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
5.21%
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%
$3,337,140
$3.3M
Cap Rate 7%
$2,383,671
$2.4M
Cap Rate 9%
$1,853,967
$1.9M
Market Conditions
NOI Build-Up for 10,600 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
$276.0K $26.04/SF
− Vacancy
−$53.5K −$5.05/SF
EGI
$222.5K $20.99/SF
− OpEx
−$55.6K −$5.25/SF
NOI
$166.9K $15.74/SF
Area
Chandler, AZ
Vacancy
19.40%
Lease Rate
$26.04 /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%
$3,337,140
Cap Rate 7%
$2,383,671
Cap Rate 9%
$1,853,967
Alternative Uses
Best Use
Office B
$2.38M
$2.09M – $2.78M
NOI $166,857 @ 7.0% cap · market cap 5.21%
Second Best
Healthcare Medical
$1.94M
$1.70M – $2.26M
NOI $135,850 @ 7.0% cap · market cap 4.25%
Theoretical Best
Office A
$3.04M
$2.66M – $3.54M
NOI $212,678 @ 7.0% cap · market cap 6.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
652
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85224, AZ
46,919
Population
21,559
Households
2.2
Avg Household Size
38
Median Age
40%
College-Educated
94%
High-School Grad
9.4 sq mi
ZIP Area
4,991
Density / Sq Mi
$90,886
Median Household Income
$53,408
Median Earnings
$1,785
Median Rent
$391,000
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.
Similar Off Market Nearby
- Cedar Sanctuary — Parking lot, 610 N Alma School Rd UNIT 24, Chandler, AZ 85224
- Sunkist Kids Academy — 1255 N Dobson Rd, Chandler, AZ 85224
- Senior Helpers — 600 W Ray Rd ste a 1, Chandler, AZ 85225
Frequently Asked Questions
What type of property is this?
Day care center - Recently renovated commercial building on 2.167 acres in Chandler.
Where is this day care center located?
The property is located at 1151 W Ray Rd Chandler, AZ.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Fully renovated with over $250,000 in recent upgrades, including a new roof, LED lighting, LVT flooring, interior repaint, and refurbished parking lot.; Delivered vacant, offering exceptional flexibility for owner‑user, medical, educational, investor lease‑up, or redevelopment strategy.; Prime location on Ray Road with high visibility (30,000+ vehicles per day) and convenient access to Loop 202.
