Office Building with
For Sale
$719,900
116 S Alto St, Prescott, AZ 86303
Configured for professional operations with multiple offices, meeting space, reception, and an attached private residence.
Property Size2,800 SF
Price / SF$257.11
Days on Market78
Property Features for 116 S Alto St
General Information
Standard status
Active
Size
2,800 SF
Class
Class A
Property subtype
Commercial
Additional Details
Office Units
6
Building Details
Year Built
1974
Listing Agency:
Berkshire Hathaway HomeService AZ Properties
(928) 710-1832
Listed By:
Benjamin Filer · License #BR008150000
Source:
Searchprescotthouses
Added: Jun 13
Changed: Aug 28
Last Checked: Aug 28 at 2:22PM
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 Berkshire Hathaway HomeService AZ Properties
Investment Insights
Based on property information with market context.
This 2,800-square-foot office building, constructed in 1974, includes six office suites along with a conference room, waiting area, and adjoining reception office. A multi-stall bathroom supports the commercial layout, while the property also contains a private one-bedroom apartment with its own bathroom, living room, and kitchen.
The property is located at 116 S Alto St in Prescott, Arizona, minutes from downtown. Its combination of dedicated office areas and an attached residential component creates a distinct live-work configuration within a professional office setting.
The property is located at 116 S Alto St in Prescott, Arizona, minutes from downtown. Its combination of dedicated office areas and an attached residential component creates a distinct live-work configuration within a professional office setting.
Key Highlights
- 2,800 SF office building constructed in 1974
- Six office suites with conference room and waiting area
- Reception office adjoining the waiting room
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
$40,724
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
5.66%
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%
$814,480
$814.5K
Cap Rate 7%
$581,771
$581.8K
Cap Rate 9%
$452,489
$452.5K
Market Conditions
NOI Build-Up for 2,800 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
$65.2K $23.28/SF
− Vacancy
−$10.9K −$3.89/SF
EGI
$54.3K $19.39/SF
− OpEx
−$13.6K −$4.85/SF
NOI
$40.7K $14.54/SF
Area
Yavapai County, AZ
Vacancy
16.70%
Lease Rate
$23.28 /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%
$814,480
Cap Rate 7%
$581,771
Cap Rate 9%
$452,489
Alternative Uses
Best Use
Office B
$581.8K
$509.1K – $678.7K
NOI $40,724 @ 7.0% cap · market cap 5.66%
Second Best
Mixed Use
$540.0K
$472.5K – $630.0K
NOI $37,800 @ 7.0% cap · market cap 5.25%
Theoretical Best
Warehouse
$938.0K
$820.7K – $1.09M
NOI $65,659 @ 7.0% cap · market cap 9.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Office units
Location Intelligence
Trade Area within ½ mile
1,037
Businesses Nearby
Explore this area
Business Placement
Demographics for 86303, AZ
18,201
Population
12,255
Households
1.5
Avg Household Size
61
Median Age
41%
College-Educated
96%
High-School Grad
107.2 sq mi
ZIP Area
170
Density / Sq Mi
$68,656
Median Household Income
$44,428
Median Earnings
$1,309
Median Rent
$502,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Configured for professional operations with multiple offices, meeting space, reception, and an attached private residence.
Where is this office building located?
The property is located at 116 S Alto St Prescott, AZ.
What is the asking price?
The asking price for this property is $719,900.
What are key features of this property?
This property features: 2,800 SF office building constructed in 1974; Six office suites with conference room and waiting area; Reception office adjoining the waiting room
