Class A Office
For Sale
Contact for pricing
1095 W Rio Salado Pkwy, Tempe, AZ 85281
Class A office building built in 2006 with GID zoning in the City of Tempe.
Property Size2,361 SF
Price / SF$294.37
Days on Market801
Property Features for 1095 W Rio Salado Pkwy
General Information
Standard status
Active
Size
2,361 SF
Class
A
Property subtype
OFFICE
Zoning
GID
Building Details
Year Built
2006
Listing Agency:
LevRose Commercial Real Estate
(480) 947-0600
Listed By:
Michael Feldman · License #SA026467000
(602) 628-1747
Source:
Moodyscre
Added: Jul 8, 2024
Changed: Sep 9
Last Checked: Sep 15 at 8:10AM
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 LevRose Commercial Real Estate
Investment Insights
Based on property information with market context.
Class “A” office building constructed in 2006. The offering is positioned for office use under City of Tempe GID zoning.
The property is less than 2 miles from Sky Harbor and is located across from the Tempe Center of the Arts. It also notes excellent access to valley freeways.
Further specifics on unit configuration, interior finishes, and available suites are not provided in the available materials.
The property is less than 2 miles from Sky Harbor and is located across from the Tempe Center of the Arts. It also notes excellent access to valley freeways.
Further specifics on unit configuration, interior finishes, and available suites are not provided in the available materials.
Key Highlights
- Class A office building constructed in 2006
- GID zoning in the City of Tempe
- Located less than 2 miles from Sky Harbor
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
$42,202
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
6.07%
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%
$844,040
$844.0K
Cap Rate 7%
$602,886
$602.9K
Cap Rate 9%
$468,911
$468.9K
Market Conditions
NOI Build-Up for 2,361 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
$71.7K $30.36/SF
− Vacancy
−$15.4K −$6.53/SF
EGI
$56.3K $23.83/SF
− OpEx
−$14.1K −$5.96/SF
NOI
$42.2K $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%
$844,040
Cap Rate 7%
$602,886
Cap Rate 9%
$468,911
Alternative Uses
Best Use
Office B
$602.9K
$527.5K – $703.4K
NOI $42,202 @ 7.0% cap · market cap 6.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$742.4K
$649.6K – $866.2K
NOI $51,971 @ 7.0% cap · market cap 7.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
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 - Class A office building built in 2006 with GID zoning in the City of Tempe.
Where is this office building located?
The property is located at 1095 W Rio Salado Pkwy Tempe, AZ.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: Class A office building constructed in 2006; GID zoning in the City of Tempe; Located less than 2 miles from Sky Harbor
