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Mixed-Use Auto Shop With Residence
For Sale
$475,000

125 N Frontage Rd, Pearce, AZ 85625

Fenced commercial property combines an automotive service facility, retail frontage, and a renovated residence for integrated business and living use.

Property Size3,172 SF
Price / SF$149.75
Days on Market191

Property Features for 125 N Frontage Rd

General Information

Standard status Active
Size 3,172 SF
Property subtype Commercial
Zoning GB

Site & Location

Highway Access Yes
Road Access Yes
Fenced Yard Yes

Additional Details

Service Bays 4

Amenities

wood-burning fireplace
shaded concrete slab front porch

Building Details

Year Built 1963
Buildings 2
Listing Agency: Realty Executives Arizona Territory
Listed By: Lynn Haber
Source: Anthony.viewalltucsonhomes
Added: Feb 12 Changed: Aug 18 Last Checked: Aug 21 at 8:43AM

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 Realty Executives Arizona Territory

Investment Insights

Based on property information with market context.

This mixed-use property combines a commercial automotive facility with residential improvements. The 3,172-square-foot shop includes a front retail area and four service bays, along with an auto lift and older forklift that convey with the sale. The facility is enclosed by fencing and accessed through a gate. A separate 1,288-square-foot, two-bedroom residence sits behind the shop and includes a wood-burning fireplace and covered concrete front porch. The home was renovated in 2016 and has not been occupied since.

The property occupies seven lots zoned GB (General Business) at 125 N Frontage Rd in Pearce, Arizona, along the frontage road of Highway 191. Daily residential and commercial traffic passes the site. The shop and residence roofs were repaired and recoated in 2026. The property is offered as-is, where-is, with most items currently on site included, excluding certain personal belongings.

Key Highlights

  • 3,172‑square‑foot automotive shop with front retail area and four service bays
  • 1,288‑square‑foot renovated two‑bedroom residence behind the shop
  • Seven lots zoned GB (General Business)

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
$24,247
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
5.10%
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%
$484,940 $484.9K
Cap Rate 7%
$346,386 $346.4K
Cap Rate 9%
$269,411 $269.4K
Market Conditions
NOI Build-Up for 3,172 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
$40.0K $12.60/SF
− Vacancy
−$7.6K −$2.41/SF
EGI
$32.3K $10.19/SF
− OpEx
−$8.1K −$2.55/SF
NOI
$24.2K $7.64/SF
Area
Cochise County, AZ
Vacancy
19.11%
Lease Rate
$12.60 /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%
$484,940
Cap Rate 7%
$346,386
Cap Rate 9%
$269,411

Alternative Uses

Best Use
Office B
$346.4K
$303.1K – $404.1K (±1% cap)
NOI $24,247 @ 7.0% cap · market cap 5.10%
Second Best
Retail
$292.5K
$255.9K – $341.3K (±1% cap)
NOI $20,475 @ 7.0% cap · market cap 4.31%
Theoretical Best
Specialty Retail
$470.0K
$411.3K – $548.4K (±1% cap)
NOI $32,902 @ 7.0% cap · market cap 6.93%
Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Auto shops

Suggested Use

Top Pick Building Supply Auto Parts Store Big Box & Wholesale Store Storage Facility Grocery & Convenience Store (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

4
Service bays
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access

Location Intelligence

Trade Area within ½ mile

79
Businesses Nearby

Demographics for 85625, AZ

1,871
Population
1,437
Households
1.3
Avg Household Size
63
Median Age
36%
College-Educated
93%
High-School Grad
338.4 sq mi
ZIP Area
6
Density / Sq Mi
$51,042
Median Household Income
$53,246
Median Earnings
$800
Median Rent
$158,500
Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019
14.1% 2020
15.5% 2021
17.2% 2022
19.9% 2023
21% 2024
20.8% 2025
Rey
Questions? Ask Rey
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Frequently Asked Questions

What type of property is this?
Mixed-use property - Fenced commercial property combines an automotive service facility, retail frontage, and a renovated residence for integrated business and living use.
Where is this mixed-use property located?
The property is located at 125 N Frontage Rd Pearce, AZ.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 3,172‑square‑foot automotive shop with front retail area and four service bays; 1,288‑square‑foot renovated two‑bedroom residence behind the shop; Seven lots zoned GB (General Business)
More about this property
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