Phoenix Industrial Building For
For Sale
Contact for pricing
1654 W Knudsen Dr, Phoenix, AZ
25,880 SF industrial building on 1.51 acres.
Property Size25,880 SF
Lot Size1.52 Acres
Price / SF$223.15
Days on Market520
Property Features for 1654 W Knudsen Dr
General Information
Standard status
Active
Size
25,880 SF
Lot size
1.52 Acres
Property subtype
INDUSTRIAL
Listing Agency:
Rein & Grossoehme
(480) 214-9400
Listed By:
Max Schumacher
(480) 214-9403
Source:
Moodyscre
Added: Apr 10, 2025
Changed: Sep 2
Last Checked: Sep 11 at 6:14AM
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 Rein & Grossoehme
Investment Insights
Based on property information with market context.
The property at 1654 W Knudsen Ave in Phoenix, AZ, features a 25,880 square foot freestanding industrial building on a 1.51-acre lot. It is located within the Deer Valley submarket. The seller is proposing a three-year sale-leaseback at a below-market rent of $1.07 per square foot NNN, with a proposed Year 1 NOI of $332,299.
Key Highlights
- Freestanding 25,880 SF industrial building
- Located in the Deer Valley submarket
- Situated on 1.51 acres of land
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
$197,678
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
3.42%
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%
$3,953,560
$4.0M
Cap Rate 7%
$2,823,971
$2.8M
Cap Rate 9%
$2,196,422
$2.2M
Market Conditions
NOI Build-Up for 25,880 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
$264.0K $10.20/SF
− Vacancy
−$31.4K −$1.21/SF
EGI
$232.6K $8.99/SF
− OpEx
−$34.9K −$1.35/SF
NOI
$197.7K $7.64/SF
Area
Phoenix, AZ
Vacancy
11.90%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
15.00%
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%
$3,953,560
Cap Rate 7%
$2,823,971
Cap Rate 9%
$2,196,422
Alternative Uses
Best Use
Warehouse
$2.82M
$2.47M – $3.29M
NOI $197,678 @ 7.0% cap · market cap 3.42%
Second Best
Industrial
$2.33M
$2.03M – $2.71M
NOI $162,794 @ 7.0% cap · market cap 2.82%
Theoretical Best
Office A
$7.84M
$6.86M – $9.15M
NOI $548,749 @ 7.0% cap · market cap 9.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,075
Businesses Nearby
Well-served
Demand for This Use
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Warehouse - 25,880 SF industrial building on 1.51 acres.
Where is this warehouse located?
The property is located at 1654 W Knudsen Dr Phoenix, AZ.
What is the asking price?
The asking price for this property is $5,775,000.
What are key features of this property?
This property features: Freestanding 25,880 SF industrial building; Located in the Deer Valley submarket; Situated on 1.51 acres of land
