Industrial Flex
For Sale
$6,500,000
2512 E Magnolia St, Phoenix, AZ 85034
Industrial-zoned facility with a large, adaptable footprint for warehouse, distribution, or flex operations.
Property Size55,349 SF
Price / SF$110.38
Days on Market10
Property Features for 2512 E Magnolia St
General Information
Standard status
Active
Size
55,349 SF
Property subtype
Industrial
Building Details
Building Size
55,349 SF
Year Built
1965
Buildings
1
Listing Agency:
Lee & Associates | Phoenix
(602) 912-3530
Listed By:
TJ Swearengin
Source:
Lee-associates
Added: Aug 22
Changed: Aug 30
Last Checked: Aug 31 at 1:37PM
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 Lee & Associates | Phoenix
Investment Insights
Based on property information with market context.
Located at 2512 E Magnolia Street in Phoenix, Arizona, this industrial flex property contains a 58,890-square-foot building constructed in 1965. The facility offers a substantial footprint and a functional configuration suited to warehouse, distribution, and flex industrial operations.
Industrial zoning supports its commercial positioning, while the adaptable layout may accommodate multiple occupiers or an owner-user configuration. The property is also presented as an income-producing industrial asset for buyers evaluating portfolio additions.
Industrial zoning supports its commercial positioning, while the adaptable layout may accommodate multiple occupiers or an owner-user configuration. The property is also presented as an income-producing industrial asset for buyers evaluating portfolio additions.
Key Highlights
- 58,890‑square‑foot industrial building
- Industrial zoning supports warehouse, distribution, and flex uses
- Adaptable layout designed for multiple occupiers
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
$449,818
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
6.92%
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%
$8,996,360
$9.0M
Cap Rate 7%
$6,425,971
$6.4M
Cap Rate 9%
$4,997,978
$5.0M
Market Conditions
NOI Build-Up for 58,890 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
$600.7K $10.20/SF
− Vacancy
−$71.5K −$1.21/SF
EGI
$529.2K $8.99/SF
− OpEx
−$79.4K −$1.35/SF
NOI
$449.8K $7.64/SF
Area
Phoenix, AZ
Vacancy
11.90%
Lease Rate
$10.20 /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%
$8,996,360
Cap Rate 7%
$6,425,971
Cap Rate 9%
$4,997,978
Alternative Uses
Best Use
Flex RnD
$9.24M
$8.08M – $10.78M
NOI $646,754 @ 7.0% cap · market cap 9.95%
Second Best
Warehouse
$6.43M
$5.62M – $7.50M
NOI $449,818 @ 7.0% cap · market cap 6.92%
Theoretical Best
Office A
$17.84M
$15.61M – $20.81M
NOI $1,248,680 @ 7.0% cap · market cap 19.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
527
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85034, AZ
5,033
Population
2,901
Households
1.7
Avg Household Size
32
Median Age
32%
College-Educated
81%
High-School Grad
11.6 sq mi
ZIP Area
434
Density / Sq Mi
$53,545
Median Household Income
$43,236
Median Earnings
$1,205
Median Rent
$397,400
Median Home Value
Market
Vacancy Rate% for Industrial in Phoenix, AZ
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- LSG Sky Chefs Inc — 3555 S 28th St, Phoenix, AZ 85040
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- Scratch Catering — 2601 S 24th St, Phoenix, AZ 85034
Frequently Asked Questions
What type of property is this?
Flex space - Industrial-zoned facility with a large, adaptable footprint for warehouse, distribution, or flex operations.
Where is this flex space located?
The property is located at 2512 E Magnolia St Phoenix, AZ.
What is the asking price?
The asking price for this property is $6,500,000.
What are key features of this property?
This property features: 58,890‑square‑foot industrial building; Industrial zoning supports warehouse, distribution, and flex uses; Adaptable layout designed for multiple occupiers
