Freestanding Warehouse on 5.8
For Sale
Contact for pricing
5400 E McDowell Rd, Mesa, AZ 85215
Freestanding warehouse totaling 53,645 square feet on 5.8 acres, offered for sale or lease.
Property Size53,645 SF
Lot Size5.80 Acres
Price / SF$300.12
Days on Market1253
Property Features for 5400 E McDowell Rd
General Information
Standard status
Active
Size
53,645 SF
Lot size
5.80 Acres
Property subtype
INDUSTRIAL
Listing Agency:
CBRE | Phoenix
(602) 735-5555
Listed By:
Mike Parker
(602) 614-7877
Source:
Moodyscre
Added: Apr 6, 2023
Changed: Sep 8
Last Checked: Sep 8 at 8:07AM
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 CBRE | Phoenix
Investment Insights
Based on property information with market context.
This freestanding warehouse building offers a total of 53,645 square feet and is available for sale or lease. The property sits on 5.8 acres, providing room for yard and operational space.
The asset is located at 5400 E McDowell Rd in Mesa, Arizona.
The asset is located at 5400 E McDowell Rd in Mesa, Arizona.
Key Highlights
- Freestanding warehouse totaling 53,645 SF
- Set on 5.8 acres
- Available for sale or lease
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
$648,358
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
4.03%
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%
$12,967,160
$13.0M
Cap Rate 7%
$9,262,257
$9.3M
Cap Rate 9%
$7,203,978
$7.2M
Market Conditions
NOI Build-Up for 53,645 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
$817.5K $15.24/SF
− Vacancy
−$54.8K −$1.02/SF
EGI
$762.8K $14.22/SF
− OpEx
−$114.4K −$2.13/SF
NOI
$648.4K $12.09/SF
Area
Mesa, AZ
Vacancy
6.70%
Lease Rate
$15.24 /SF/Yr
Expense Ratio
15.00%
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%
$12,967,160
Cap Rate 7%
$9,262,257
Cap Rate 9%
$7,203,978
Alternative Uses
Best Use
Warehouse
$9.26M
$8.10M – $10.81M
NOI $648,358 @ 7.0% cap · market cap 4.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$14.70M
$12.87M – $17.16M
NOI $1,029,315 @ 7.0% cap · market cap 6.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
145
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 85215, AZ
16,461
Population
9,146
Households
1.8
Avg Household Size
56
Median Age
36%
College-Educated
96%
High-School Grad
82.8 sq mi
ZIP Area
199
Density / Sq Mi
$90,310
Median Household Income
$55,687
Median Earnings
$1,755
Median Rent
$398,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Red Mountain Self Storage & RV — 5612 E McDowell Rd, Mesa, AZ 85215
- Public Storage — 5910 E McDowell Rd, Mesa, AZ 85215
Frequently Asked Questions
What type of property is this?
Warehouse - Freestanding warehouse totaling 53,645 square feet on 5.8 acres, offered for sale or lease.
Where is this warehouse located?
The property is located at 5400 E McDowell Rd Mesa, AZ.
What is the asking price?
The asking price for this property is $16,100,000.
What are key features of this property?
This property features: Freestanding warehouse totaling 53,645 SF; Set on 5.8 acres; Available for sale or lease
