Freestanding Office
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For Sale
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1225 E Fort Union Boulevard, Cottonwood Heights, UT 84047
ORD-zoned office property with refreshed restrooms, improved common areas, and prominent building signage.
Property Size33,983 SF
Price / SF$220
Days on Market6
Property Features for 1225 E Fort Union Boulevard
General Information
Standard status
Active
Size
33,983 SF
Class
B
Property subtype
Office
Zoning
ORD
Occupancy
71%
Lease Type
Gross
Investment Type
Owner/User
Additional Details
Road Access
Yes
Amenities
updated common areas
refreshed restrooms
resurfaced parking lot
monument and crown signage
Building Details
Year Built
1981
Buildings
1
Stories
3
Units
8
Tenancy
Multi
Building Size
33,983 SF
Listing Agency:
Colliers - Salt Lake City, Utah
Listed By:
Derek Sawaya · License #8082653-SA00
Source:
Crexi
Added: Aug 5
Changed: Aug 10
Last Checked: Aug 10 at 5:40AM
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 Colliers - Salt Lake City, Utah
Investment Insights
Based on property information with market context.
Built in 1981, this freestanding office building contains 33,983 square feet and is currently 71% leased. The second floor includes 11,707 RSF of available space, providing a defined vacancy within the existing office configuration. Interior updates include refreshed restrooms and renovated common areas.
The property fronts Fort Union Boulevard in Cottonwood Heights and experiences approximately 32,000 ADT. Site improvements include a resurfaced parking lot along with monument and crown signage. The property is zoned ORD and addressed at 1225 E. Fort Union Boulevard.
The property fronts Fort Union Boulevard in Cottonwood Heights and experiences approximately 32,000 ADT. Site improvements include a resurfaced parking lot along with monument and crown signage. The property is zoned ORD and addressed at 1225 E. Fort Union Boulevard.
Key Highlights
- 33,983‑square‑foot freestanding office building
- 71% leased with 11,707 RSF available on the second floor
- Approximately 32,000 ADT along Fort Union Boulevard
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
$492,720
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
6.59%
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%
$9,854,400
$9.9M
Cap Rate 7%
$7,038,857
$7.0M
Cap Rate 9%
$5,474,667
$5.5M
Market Conditions
NOI Build-Up for 33,983 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
$730.0K $21.48/SF
− Vacancy
−$73.0K −$2.15/SF
EGI
$657.0K $19.33/SF
− OpEx
−$164.2K −$4.83/SF
NOI
$492.7K $14.50/SF
Area
Salt Lake County, UT
Vacancy
10.00%
Lease Rate
$21.48 /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%
$9,854,400
Cap Rate 7%
$7,038,857
Cap Rate 9%
$5,474,667
Alternative Uses
Best Use
Office B
$7.04M
$6.16M – $8.21M
NOI $492,720 @ 7.0% cap · market cap 6.59%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$452.50M
$395.93M – $527.91M
NOI $31,674,731 @ 7.0% cap · market cap 423.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,241
Businesses Nearby
Explore this area
Business Placement
Demographics for 84047, UT
37,146
Population
17,221
Households
2.2
Avg Household Size
33
Median Age
34%
College-Educated
92%
High-School Grad
6.4 sq mi
ZIP Area
5,804
Density / Sq Mi
$73,120
Median Household Income
$43,845
Median Earnings
$1,482
Median Rent
$404,200
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.
Frequently Asked Questions
What type of property is this?
Office building - ORD-zoned office property with refreshed restrooms, improved common areas, and prominent building signage.
Where is this office building located?
The property is located at 1225 E Fort Union Boulevard Cottonwood Heights, UT.
What is the asking price?
The asking price for this property is $7,476,260.
What are key features of this property?
This property features: 33,983‑square‑foot freestanding office building; 71% leased with 11,707 RSF available on the second floor; Approximately 32,000 ADT along Fort Union Boulevard
