Office Suite with Lake
For Sale
Contact for pricing
1255 W Rio Salado Parkway Unit 115, Tempe, AZ 85281
Office suite overlooking Tempe Town Lake with convenient access to Loop 101 and Loop 202.
Property Size2,051 SF
Price / SF$365
Days on Market125
Property Features for 1255 W Rio Salado Parkway Unit 115
General Information
Standard status
Active
Size
2,051 SF
Class
B
Total Parking Spaces
5
Property subtype
Office
Investment Type
Owner/User
Additional Details
Highway Access
Yes
Building Details
Year Built
2008
Units
1
Listing Agency:
Stream Realty Partners
Listed By:
Ben Seale · License #SA702155000
Source:
Crexi
Added: May 7
Changed: Aug 13
Last Checked: Sep 7 at 10:39AM
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 Stream Realty Partners
Investment Insights
Based on property information with market context.
This property includes an office suite (Unit 115) at 1255 W Rio Salado Parkway. The offering is positioned along the Rio Salado corridor and overlooks Tempe Town Lake.
The location provides convenient access to both Loop 101 and Loop 202 freeways. The property is approximately 1.4 miles from Phoenix Sky Harbor International Airport and is described as minutes from the Mill Avenue District, Downtown Tempe, Arizona State University, and Tempe Marketplace, supporting immediate access to nearby dining, retail, and entertainment.
The location provides convenient access to both Loop 101 and Loop 202 freeways. The property is approximately 1.4 miles from Phoenix Sky Harbor International Airport and is described as minutes from the Mill Avenue District, Downtown Tempe, Arizona State University, and Tempe Marketplace, supporting immediate access to nearby dining, retail, and entertainment.
Key Highlights
- Office suite in a 2008‑built property
- Overlooks Tempe Town Lake
- Convenient access to Loop 101 and Loop 202 freeways
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
$36,660
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
4.90%
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%
$733,200
$733.2K
Cap Rate 7%
$523,714
$523.7K
Cap Rate 9%
$407,333
$407.3K
Market Conditions
NOI Build-Up for 2,051 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
$62.3K $30.36/SF
− Vacancy
−$13.4K −$6.53/SF
EGI
$48.9K $23.83/SF
− OpEx
−$12.2K −$5.96/SF
NOI
$36.7K $17.87/SF
Area
Tempe, AZ
Vacancy
21.50%
Lease Rate
$30.36 /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%
$733,200
Cap Rate 7%
$523,714
Cap Rate 9%
$407,333
Alternative Uses
Best Use
Office B
$523.7K
$458.3K – $611.0K
NOI $36,660 @ 7.0% cap · market cap 4.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$645.0K
$564.3K – $752.5K
NOI $45,147 @ 7.0% cap · market cap 6.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
867
Businesses Nearby
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office suite overlooking Tempe Town Lake with convenient access to Loop 101 and Loop 202.
Where is this office building located?
The property is located at 1255 W Rio Salado Parkway Unit 115 Tempe, AZ.
What is the asking price?
The asking price for this property is $748,615.
What are key features of this property?
This property features: Office suite in a 2008‑built property; Overlooks Tempe Town Lake; Convenient access to Loop 101 and Loop 202 freeways
