Office Building with Recent
For Sale
$1,895,000
8040 E Indian School Rd, Scottsdale, AZ 85251
Office building with $135,000 in this-year capital improvements and a 7.00/1,000 parking ratio.
Property Size5,718 SF
Days on Market40
Property Features for 8040 E Indian School Rd
General Information
Standard status
Active
Size
5,718 SF
Class
B
Property subtype
Office
Net Operating Income
$20,539
Building Details
Building Size
5,718 SF
Year Built
2005
Parking Ratio
7 per 1,000 SF
Listing Agency:
Commercial Properties Inc
Listed By:
Matt Zaccardi · License #SA584155000
(602) 561-1339
Source:
Cpiaz
Added: Jul 28
Changed: Sep 3
Last Checked: Sep 5 at 6:26AM
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.
This office building includes recent capital improvements, with $135,000 invested on capex this year. Operating expenses are reported at $7.39 per square foot, and the year-forward NOI is listed at $20,539.57. The property has a parking ratio of 7.00 per 1,000 square feet.
The building is located at 8040 E Indian School Rd in Scottsdale, Arizona (85251).
The building is located at 8040 E Indian School Rd in Scottsdale, Arizona (85251).
Key Highlights
- Recent building improvements with $135,000 invested on cap ex this year
- Year‑forward NOI of $20,539.57
- Expenses of $7.39/SF
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
$90,526
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
4.78%
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%
$1,810,520
$1.8M
Cap Rate 7%
$1,293,229
$1.3M
Cap Rate 9%
$1,005,844
$1.0M
Market Conditions
NOI Build-Up for 5,718 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
$146.8K $25.68/SF
− Vacancy
−$26.1K −$4.57/SF
EGI
$120.7K $21.11/SF
− OpEx
−$30.2K −$5.28/SF
NOI
$90.5K $15.83/SF
Area
Scottsdale, AZ
Vacancy
17.80%
Lease Rate
$25.68 /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%
$1,810,520
Cap Rate 7%
$1,293,229
Cap Rate 9%
$1,005,844
Alternative Uses
Best Use
Office B
$1.29M
$1.13M – $1.51M
NOI $90,526 @ 7.0% cap · market cap 4.78%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$1.88M
$1.64M – $2.19M
NOI $131,394 @ 7.0% cap · market cap 6.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,345
Businesses Nearby
Explore this area
Business Placement
Demographics for 85251, AZ
40,073
Population
26,456
Households
1.5
Avg Household Size
39
Median Age
60%
College-Educated
96%
High-School Grad
7.2 sq mi
ZIP Area
5,566
Density / Sq Mi
$89,151
Median Household Income
$60,282
Median Earnings
$1,771
Median Rent
$500,700
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 - Office building with $135,000 in this-year capital improvements and a 7.00/1,000 parking ratio.
Where is this office building located?
The property is located at 8040 E Indian School Rd Scottsdale, AZ.
What is the asking price?
The asking price for this property is $1,895,000.
What are key features of this property?
This property features: Recent building improvements with $135,000 invested on cap ex this year; Year‑forward NOI of $20,539.57; Expenses of $7.39/SF
