Downtown Tucson Office
For Sale
Contact for pricing
120 N Stone Ave, Tucson, AZ
Two-story office building with parking in downtown Tucson.
Property Size35,178 SF
Lot Size0.59 Acres
Price / SF$110.86
Days on Market281
Property Features for 120 N Stone Ave
General Information
Standard status
Active
Size
35,178 SF
Lot size
0.59 Acres
Property subtype
OFFICE
Listing Agency:
Cushman & Wakefield | Phoenix
(602) 224-4471
Listed By:
Ryan McGregor · License #SA109618000
(520) 271-2657
Source:
Moodyscre
Added: Nov 24, 2025
Changed: Aug 8
Last Checked: Aug 31 at 12:31AM
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 Cushman & Wakefield | Phoenix
Investment Insights
Based on property information with market context.
This two-story office building includes a basement and was originally constructed as part of the Pioneer Hotel. The project was later remodeled as a free-standing office development. An attached parking garage and subterranean parking level provide abundant parking. Three additional parking garages and lots are immediately adjacent to the property. Most tenants are on long-term leases, however some executive suite rentals are also available. Primary and service elevators combined with the Stone Avenue address provide easy access and excellent signage for tenants. A rear open courtyard, which once housed the pool for the Pioneer Hotel, provides a secure outdoor break area for tenants, while adjoining buildings provide numerous dining locations. The property is located directly across the street from the City of Tucson Library and one block from a Sunlink streetcar stop. The property size is 35178 square feet.
Key Highlights
- Abundant parking with attached garage and subterranean level, a rarity in Downtown Tucson, plus three additional adjacent parking options.
- Prime location on Stone Avenue, directly across from the City of Tucson Library and one block from the Sunlink streetcar stop.
- Easy access with primary and service elevators and excellent signage opportunities.
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
$334,382
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
8.57%
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%
$6,687,640
$6.7M
Cap Rate 7%
$4,776,886
$4.8M
Cap Rate 9%
$3,715,356
$3.7M
Market Conditions
NOI Build-Up for 35,178 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
$506.6K $14.40/SF
− Vacancy
−$28.9K −$0.82/SF
EGI
$477.7K $13.58/SF
− OpEx
−$143.3K −$4.07/SF
NOI
$334.4K $9.51/SF
Area
Tucson, AZ
Vacancy
5.70%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$6,687,640
Cap Rate 7%
$4,776,886
Cap Rate 9%
$3,715,356
Alternative Uses
Best Use
Office B
$7.34M
$6.43M – $8.57M
NOI $514,035 @ 7.0% cap · market cap 13.18%
Second Best
Retail
$4.78M
$4.18M – $5.57M
NOI $334,382 @ 7.0% cap · market cap 8.57%
Theoretical Best
Office A
$9.14M
$8.00M – $10.66M
NOI $639,688 @ 7.0% cap · market cap 16.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,480
Businesses Nearby
Explore this area
Business Placement
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 building - Two-story office building with parking in downtown Tucson.
Where is this office building located?
The property is located at 120 N Stone Ave Tucson, AZ.
What is the asking price?
The asking price for this property is $3,900,000.
What are key features of this property?
This property features: Abundant parking with attached garage and subterranean level, a rarity in Downtown Tucson, plus three additional adjacent parking options.; Prime location on Stone Avenue, directly across from the City of Tucson Library and one block from the Sunlink streetcar stop.; Easy access with primary and service elevators and excellent signage opportunities.
