Retail Space with Office
For Sale
Contact for pricing
2861 N 52nd Ave, Phoenix, AZ 85035
Located near 51st Avenue and Thomas Road with frontage along Thomas Road.
Property Size5,900 SF
Price / SF$236.44
Days on Market945
Property Features for 2861 N 52nd Ave
General Information
Standard status
Active
Size
5,900 SF
Property subtype
RETAIL
Additional Details
Road Access
Yes
Listing Agency:
Eisenberg Company
(602) 468-6100
Listed By:
Scott Spier, CCIM
(602) 625-3155
Source:
Moodyscre
Added: Feb 1, 2024
Changed: Sep 2
Last Checked: Sep 2 at 2:12PM
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 Eisenberg Company
Investment Insights
Based on property information with market context.
This 5,900-square-foot retail property includes an office component, providing a combined retail and office configuration. The property is located just west of the southwest corner of 51st Avenue and Thomas Road in Phoenix, Arizona.
Thomas Road frontage, signage, and access are identified among the site’s location features. The property address is 2861 N 52nd Ave, Phoenix, AZ 85035.
Thomas Road frontage, signage, and access are identified among the site’s location features. The property address is 2861 N 52nd Ave, Phoenix, AZ 85035.
Key Highlights
- 5,900 square feet of retail space
- Retail property with an office component
- Frontage along Thomas Road
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
$101,000
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
7.24%
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%
$2,020,000
$2.0M
Cap Rate 7%
$1,442,857
$1.4M
Cap Rate 9%
$1,122,222
$1.1M
Market Conditions
NOI Build-Up for 5,900 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
$181.2K $30.72/SF
− Vacancy
−$46.6K −$7.90/SF
EGI
$134.7K $22.82/SF
− OpEx
−$33.7K −$5.71/SF
NOI
$101.0K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /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%
$2,020,000
Cap Rate 7%
$1,442,857
Cap Rate 9%
$1,122,222
Alternative Uses
Best Use
Office B
$1.44M
$1.26M – $1.68M
NOI $101,000 @ 7.0% cap · market cap 7.24%
Second Best
Retail
$952.6K
$833.5K – $1.11M
NOI $66,683 @ 7.0% cap · market cap 4.78%
Theoretical Best
Office A
$1.79M
$1.56M – $2.09M
NOI $125,101 @ 7.0% cap · market cap 8.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
282
Businesses Nearby
Explore this area
Business Placement
Demographics for 85035, AZ
51,441
Population
15,868
Households
3.2
Avg Household Size
28
Median Age
10%
College-Educated
66%
High-School Grad
5.6 sq mi
ZIP Area
9,186
Density / Sq Mi
$57,790
Median Household Income
$34,363
Median Earnings
$1,390
Median Rent
$244,300
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Located near 51st Avenue and Thomas Road with frontage along Thomas Road.
Where is this retail space located?
The property is located at 2861 N 52nd Ave Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,395,000.
What are key features of this property?
This property features: 5,900 square feet of retail space; Retail property with an office component; Frontage along Thomas Road
