Medical Office Suite with Treatment
For Sale
$765,000
16515 S 40th St Ste 131, Phoenix, AZ 85048
Medical office suite with a reception area, multiple exam rooms, and on-site plumbing in each room.
Property Size2,178 SF
Days on Market77
Property Features for 16515 S 40th St Ste 131
General Information
Standard status
Active
Size
2,178 SF
Class
B
Property subtype
Office
Additional Details
Highway Access
Yes
Building Details
Building Size
2,178 SF
Year Built
2002
Listing Agency:
Commercial Properties Inc Tempe
Listed By:
Brandon Koplin · License #SA567178000
(602) 373-4717
Source:
Cpiaz
Added: Jun 23
Changed: Sep 5
Last Checked: Sep 7 at 5:55AM
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 Commercial Properties Inc Tempe
Investment Insights
Based on property information with market context.
This medical office suite is currently configured as a chiropractic practice and designed to support a range of healthcare and professional services. The interior includes a spacious reception and waiting area, multiple private treatment or exam rooms, a lab, and a dedicated staff break room. The suite is described as bright with ample natural light, and plumbing is available to each treatment or exam room, supporting clinical operations.
The property is located in Ahwatukee with convenient access to Highway 202 and I-10. The complex provides open shared parking throughout, supporting patient and employee arrival. This setup is positioned to serve both day-to-day practice needs and staff workflows for an on-site clinical environment.
For buyers or tenants, the layout is built around patient-facing intake and multiple private rooms, which can be useful for medical, dental, therapy, or general professional office use. With plumbing provided in each treatment or exam room, the space is particularly practical for users who need dedicated room-level utilities for clinical services. The suite’s reception, waiting, and staff areas help create a functional flow for both patients and employees.
The property is located in Ahwatukee with convenient access to Highway 202 and I-10. The complex provides open shared parking throughout, supporting patient and employee arrival. This setup is positioned to serve both day-to-day practice needs and staff workflows for an on-site clinical environment.
For buyers or tenants, the layout is built around patient-facing intake and multiple private rooms, which can be useful for medical, dental, therapy, or general professional office use. With plumbing provided in each treatment or exam room, the space is particularly practical for users who need dedicated room-level utilities for clinical services. The suite’s reception, waiting, and staff areas help create a functional flow for both patients and employees.
Key Highlights
- Built in 2005 medical/office condo currently used as a chiropractic office
- Includes a spacious reception and waiting area for patients and visitors
- Multiple private treatment/exam rooms plus a dedicated staff break room
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
$37,285
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
4.87%
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%
$745,700
$745.7K
Cap Rate 7%
$532,643
$532.6K
Cap Rate 9%
$414,278
$414.3K
Market Conditions
NOI Build-Up for 2,178 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
$66.9K $30.72/SF
− Vacancy
−$17.2K −$7.90/SF
EGI
$49.7K $22.82/SF
− OpEx
−$12.4K −$5.71/SF
NOI
$37.3K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /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%
$745,700
Cap Rate 7%
$532,643
Cap Rate 9%
$414,278
Alternative Uses
Best Use
Office B
$532.6K
$466.1K – $621.4K
NOI $37,285 @ 7.0% cap · market cap 4.87%
Second Best
Healthcare Medical
$443.6K
$388.1K – $517.5K
NOI $31,050 @ 7.0% cap · market cap 4.06%
Theoretical Best
Office A
$659.7K
$577.3K – $769.7K
NOI $46,181 @ 7.0% cap · market cap 6.04%
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
1,021
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85048, AZ
34,524
Population
14,369
Households
2.4
Avg Household Size
42
Median Age
62%
College-Educated
98%
High-School Grad
10.1 sq mi
ZIP Area
3,418
Density / Sq Mi
$123,198
Median Household Income
$70,210
Median Earnings
$1,995
Median Rent
$538,500
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Similar Off Market Nearby
- Family VetCare of Phoenix — 3908 E Chandler Blvd, Phoenix, AZ 85048
Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office suite with a reception area, multiple exam rooms, and on-site plumbing in each room.
Where is this medical office space located?
The property is located at 16515 S 40th St Ste 131 Phoenix, AZ.
What is the asking price?
The asking price for this property is $765,000.
What are key features of this property?
This property features: Built in 2005 medical/office condo currently used as a chiropractic office; Includes a spacious reception and waiting area for patients and visitors; Multiple private treatment/exam rooms plus a dedicated staff break room
