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1305 W Auto Dr, Tempe, AZ 85284
21,375 SF office building in Tempe, Arizona.
Property Size21,375 SF
Lot Size2.26 Acres
Price / SF$250.29
Days on Market198
Property Features for 1305 W Auto Dr
General Information
Standard status
Active
Size
21,375 SF
Lot size
2.26 Acres
Property subtype
Industrial
Zoning
GID
Building Details
Year Built
1999
Listing Agency:
Ross Brown Partners, Inc.
(480) 362-9530
Listed By:
Rick Collins · License #AZ
Source:
Crexi
Added: Feb 4
Changed: Aug 8
Last Checked: Jul 22 at 3:58AM
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 Ross Brown Partners, Inc.
Investment Insights
Based on property information with market context.
This 21,375 square foot office building, constructed in 1999, is fully built out as office space and features complete HVAC. The layout includes 22 private offices and 6 conference rooms. The property provides a parking ratio of 4.44 spaces per 1,000 square feet. Situated on a 2.26-acre lot, the building has a clear height of 24 feet and includes one grade-level door. It benefits from heavy power capacity. The zoning is GID, City of Tempe. Excellent freeway access is available to I-10, US60, Loop 101, and 202. Unlimited retail and employee amenities are located nearby. The property is ideal for a single tenant, and signage is available.
Key Highlights
- Excellent freeway access to I‑10, US60, Loop 101 & 202
- Ideal for single tenant
- +/- 21,375 SF currently built out as 100% office
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
$382,066
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
7.14%
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%
$7,641,320
$7.6M
Cap Rate 7%
$5,458,086
$5.5M
Cap Rate 9%
$4,245,178
$4.2M
Market Conditions
NOI Build-Up for 21,375 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
$648.9K $30.36/SF
− Vacancy
−$139.5K −$6.53/SF
EGI
$509.4K $23.83/SF
− OpEx
−$127.4K −$5.96/SF
NOI
$382.1K $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%
$7,641,320
Cap Rate 7%
$5,458,086
Cap Rate 9%
$4,245,178
Alternative Uses
Best Use
Office B
$5.46M
$4.78M – $6.37M
NOI $382,066 @ 7.0% cap · market cap 7.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.72M
$5.88M – $7.84M
NOI $470,515 @ 7.0% cap · market cap 8.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,164
Businesses Nearby
Explore this area
Business Placement
Demographics for 85284, AZ
18,638
Population
7,589
Households
2.5
Avg Household Size
45
Median Age
69%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
2,389
Density / Sq Mi
$154,663
Median Household Income
$64,288
Median Earnings
$2,162
Median Rent
$646,300
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 - 21,375 SF office building in Tempe, Arizona.
Where is this office building located?
The property is located at 1305 W Auto Dr Tempe, AZ.
What is the asking price?
The asking price for this property is $5,350,000.
What are key features of this property?
This property features: Excellent freeway access to I‑10, US60, Loop 101 & 202; Ideal for single tenant; +/- 21,375 SF currently built out as 100% office
