Downtown Office
For Sale
Contact for pricing
116 W Simpson St, Tucson, AZ 85701
For-sale office building in Tucson near key downtown cultural and entertainment venues.
Property Size3,377 SF
Price / SF$281.31
Days on Market94
Property Features for 116 W Simpson St
General Information
Standard status
Active
Size
3,377 SF
Property subtype
OFFICE
Listing Agency:
CBRE | Tucson
(520) 323-5100
Listed By:
Jeff Casper · License #632063
(520) 307-2336
Source:
Moodyscre
Added: Jun 4
Changed: Aug 8
Last Checked: Sep 5 at 3:59AM
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 CBRE | Tucson
Investment Insights
Based on property information with market context.
This property is a for-sale downtown office building at 116 W Simpson St in Tucson, AZ. The available information identifies it as office space within a compact, multi-unit commercial setting.
The location places the building blocks from major downtown destinations including the Tucson Convention Center, Linda Ronstadt Music Hall, and the Leo Rich Theater. It is also near restaurants and coffee shops, with Teatro Carmen noted as soon to be revived. Access is described as blocks from the Tucson Loop and Interstate 10.
While specific interior unit configurations and condition details are not provided, the property is positioned as an office asset within a walkable downtown environment supported by nearby entertainment and dining.
The location places the building blocks from major downtown destinations including the Tucson Convention Center, Linda Ronstadt Music Hall, and the Leo Rich Theater. It is also near restaurants and coffee shops, with Teatro Carmen noted as soon to be revived. Access is described as blocks from the Tucson Loop and Interstate 10.
While specific interior unit configurations and condition details are not provided, the property is positioned as an office asset within a walkable downtown environment supported by nearby entertainment and dining.
Key Highlights
- For‑sale office building in Tucson near Interstate 10.
- Blocks away from the Tucson Loop (131 mi. bike path).
- Close to the Tucson Convention Center, Linda Ronstadt Music Hall, and Leo Rich Theater.
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
$49,346
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
5.19%
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%
$986,920
$986.9K
Cap Rate 7%
$704,943
$704.9K
Cap Rate 9%
$548,289
$548.3K
Market Conditions
NOI Build-Up for 3,377 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
$72.9K $21.60/SF
− Vacancy
−$7.1K −$2.12/SF
EGI
$65.8K $19.48/SF
− OpEx
−$16.4K −$4.87/SF
NOI
$49.3K $14.61/SF
Area
Tucson, AZ
Vacancy
9.80%
Lease Rate
$21.60 /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%
$986,920
Cap Rate 7%
$704,943
Cap Rate 9%
$548,289
Alternative Uses
Best Use
Office B
$704.9K
$616.8K – $822.4K
NOI $49,346 @ 7.0% cap · market cap 5.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$877.3K
$767.6K – $1.02M
NOI $61,408 @ 7.0% cap · market cap 6.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,888
Businesses Nearby
Explore this area
Business Placement
Demographics for 85701, AZ
5,132
Population
3,631
Households
1.4
Avg Household Size
37
Median Age
57%
College-Educated
91%
High-School Grad
1.5 sq mi
ZIP Area
3,421
Density / Sq Mi
$52,672
Median Household Income
$43,762
Median Earnings
$1,183
Median Rent
$451,500
Median Home Value
Market
Vacancy Rate% for Office in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - For-sale office building in Tucson near key downtown cultural and entertainment venues.
Where is this office units located?
The property is located at 116 W Simpson St Tucson, AZ.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: For‑sale office building in Tucson near Interstate 10.; Blocks away from the Tucson Loop (131 mi. bike path).; Close to the Tucson Convention Center, Linda Ronstadt Music Hall, and Leo Rich Theater.
