Office Building Near Tempe
For Sale
$870,000
520 E Southern Ave, Tempe, AZ 85282
Office building positioned near major Tempe commuter routes with close freeway and airport access.
Property Size2,896 SF
Days on Market126
Property Features for 520 E Southern Ave
General Information
Standard status
Active
Size
2,896 SF
Class
B
Property subtype
Office
Additional Details
Highway Access
Yes
Building Details
Building Size
2,896 SF
Year Built
1965
Listing Agency:
The Menlo Group Commercial Real Estate LLC
Listed By:
Andrew Wehn
(602) 989-2837
Source:
Menlocre
Added: May 8
Changed: Sep 8
Last Checked: Sep 10 at 7:28AM
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 The Menlo Group Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
Located at 520 E Southern Ave, Tempe, the office building offers approximately 2,896 square feet and presents adaptive reuse potential, with the City of Tempe having updated zoning ordinances to encourage adaptive reuse.
The property is positioned for convenient regional access, with freeway proximity to both US-60 (Superstition Freeway) and I-10, each less than 2 miles away. Phoenix Sky Harbor International Airport is about 10–12 minutes from the site, and the location is near the major intersection of Southern & Rural Rd, a primary Tempe commuter artery.
The surrounding area reflects a steady, professional day-to-night environment, including over 52% college-educated residents in ZIP 85282 and a housing mix of owner-occupied homes (44%) alongside high-end rentals, with median age reported around 33–34.
The property is positioned for convenient regional access, with freeway proximity to both US-60 (Superstition Freeway) and I-10, each less than 2 miles away. Phoenix Sky Harbor International Airport is about 10–12 minutes from the site, and the location is near the major intersection of Southern & Rural Rd, a primary Tempe commuter artery.
The surrounding area reflects a steady, professional day-to-night environment, including over 52% college-educated residents in ZIP 85282 and a housing mix of owner-occupied homes (44%) alongside high-end rentals, with median age reported around 33–34.
Key Highlights
- Office building built in 1965
- Less than 2 miles to both US‑60 (Superstition Freeway) and I‑10 for Valley‑wide access
- Phoenix Sky Harbor International Airport is about 10–12 minutes away
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
$51,764
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
5.95%
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%
$1,035,280
$1.0M
Cap Rate 7%
$739,486
$739.5K
Cap Rate 9%
$575,156
$575.2K
Market Conditions
NOI Build-Up for 2,896 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
$87.9K $30.36/SF
− Vacancy
−$18.9K −$6.53/SF
EGI
$69.0K $23.83/SF
− OpEx
−$17.3K −$5.96/SF
NOI
$51.8K $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%
$1,035,280
Cap Rate 7%
$739,486
Cap Rate 9%
$575,156
Alternative Uses
Best Use
Office B
$739.5K
$647.1K – $862.7K
NOI $51,764 @ 7.0% cap · market cap 5.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$910.7K
$796.9K – $1.06M
NOI $63,748 @ 7.0% cap · market cap 7.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,177
Businesses Nearby
Explore this area
Business Placement
Demographics for 85282, AZ
52,351
Population
25,667
Households
2
Avg Household Size
33
Median Age
44%
College-Educated
94%
High-School Grad
11.1 sq mi
ZIP Area
4,716
Density / Sq Mi
$79,084
Median Household Income
$43,863
Median Earnings
$1,627
Median Rent
$370,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Office building positioned near major Tempe commuter routes with close freeway and airport access.
Where is this office building located?
The property is located at 520 E Southern Ave Tempe, AZ.
What is the asking price?
The asking price for this property is $870,000.
What are key features of this property?
This property features: Office building built in 1965; Less than 2 miles to both US‑60 (Superstition Freeway) and I‑10 for Valley‑wide access; Phoenix Sky Harbor International Airport is about 10–12 minutes away
