Well-Maintained Office
For Sale
$2,689,999
398 S Arizona Ave, Chandler, AZ 85225
Constructed in 1997, this well-maintained office building totals 6,725 SF and is zoned C-3.
Property Size6,725 SF
Price / SF$399
Days on Market45
Property Features for 398 S Arizona Ave
General Information
Standard status
Active
Size
6,725 SF
Property subtype
Office
Zoning
C-3
Building Details
Building Size
6,725 SF
Year Built
1997
Listing Agency:
Commercial Properties Inc
Listed By:
Matt Zaccardi · License #SA584155000
(602) 561-1339
Source:
Cpiaz
Added: Jul 23
Changed: Aug 31
Last Checked: Sep 5 at 3:49AM
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
Investment Insights
Based on property information with market context.
Constructed in 1997, this well-maintained office building offers a total of 6,725 SF of space and is suited for office uses under its C-3 zoning designation. The building is presented as an office-focused investment opportunity.
The property is located at 398 S Arizona Ave in Chandler, AZ, positioned in the East Valley area.
For investors and owner-operators seeking a commercially zoned office building with a defined total size and established construction date, this asset provides a straightforward option within its C-3 district.
The property is located at 398 S Arizona Ave in Chandler, AZ, positioned in the East Valley area.
For investors and owner-operators seeking a commercially zoned office building with a defined total size and established construction date, this asset provides a straightforward option within its C-3 district.
Key Highlights
- Office building constructed in 1997
- 6,725 SF building
- Zoned C‑3
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
$105,859
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
3.94%
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%
$2,117,180
$2.1M
Cap Rate 7%
$1,512,271
$1.5M
Cap Rate 9%
$1,176,211
$1.2M
Market Conditions
NOI Build-Up for 6,725 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
$175.1K $26.04/SF
− Vacancy
−$34.0K −$5.05/SF
EGI
$141.1K $20.99/SF
− OpEx
−$35.3K −$5.25/SF
NOI
$105.9K $15.74/SF
Area
Chandler, AZ
Vacancy
19.40%
Lease Rate
$26.04 /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%
$2,117,180
Cap Rate 7%
$1,512,271
Cap Rate 9%
$1,176,211
Alternative Uses
Best Use
Office B
$1.51M
$1.32M – $1.76M
NOI $105,859 @ 7.0% cap · market cap 3.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.93M
$1.69M – $2.25M
NOI $134,930 @ 7.0% cap · market cap 5.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,127
Businesses Nearby
Explore this area
Business Placement
Demographics for 85225, AZ
73,551
Population
28,930
Households
2.5
Avg Household Size
35
Median Age
33%
College-Educated
88%
High-School Grad
12.7 sq mi
ZIP Area
5,791
Density / Sq Mi
$86,036
Median Household Income
$45,692
Median Earnings
$1,662
Median Rent
$386,800
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 - Constructed in 1997, this well-maintained office building totals 6,725 SF and is zoned C-3.
Where is this office building located?
The property is located at 398 S Arizona Ave Chandler, AZ.
What is the asking price?
The asking price for this property is $2,689,999.
What are key features of this property?
This property features: Office building constructed in 1997; 6,725 SF building; Zoned C‑3
