Flex Space with
For Sale
Contact for pricing
1375 W Drivers Way, Tempe, AZ 85284
Versatile industrial space with substantial office programming, high-capacity power, and parking for business operations.
Property Size26,282 SF
Price / SF$220.68
Days on Market52
Property Features for 1375 W Drivers Way
General Information
Standard status
Active
Size
26,282 SF
Total Parking Spaces
89
Property subtype
Industrial, Office
Warehouse & Industrial
Clear Height
22 ft
Mezzanine
5,613 SF
Power
1,600 amps
Heavy Power
Yes
Amenities
kitchen
Building Details
Year Built
1998
Year Renovated
2019
Listing Agency:
Colliers - Phoenix, Arizona
Listed By:
Anthony Timpani · License #sa705358000
(602) 222-5000
Source:
Crexi
Added: Aug 7
Changed: Sep 26
Last Checked: Sep 26 at 8:02AM
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 Colliers - Phoenix, Arizona
Investment Insights
Based on property information with market context.
This 26,282-square-foot flex property at Tempe Business Center was built in 1998 and includes a mezzanine level of approximately 5,613 square feet. The building combines industrial functionality with office-related space, supporting a range of flex, specialty, and warehouse-oriented operations. Interior features include 22-foot clear heights, a 1,600-amp electrical service, and a kitchen.
The property is located at 1375 W Drivers Way in Tempe, Arizona. Ample parking is available on site, adding practical support for occupants and visitors. Its configuration brings together warehouse-oriented volume, office capacity, and utility infrastructure within a single commercial building.
The property is located at 1375 W Drivers Way in Tempe, Arizona. Ample parking is available on site, adding practical support for occupants and visitors. Its configuration brings together warehouse-oriented volume, office capacity, and utility infrastructure within a single commercial building.
Key Highlights
- 26,282 SF flex property at Tempe Business Center
- Approximately 5,613 SF mezzanine level
- 22‑foot clear heights
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
$469,776
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
8.10%
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%
$9,395,520
$9.4M
Cap Rate 7%
$6,711,086
$6.7M
Cap Rate 9%
$5,219,733
$5.2M
Market Conditions
NOI Build-Up for 26,282 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
$797.9K $30.36/SF
− Vacancy
−$171.6K −$6.53/SF
EGI
$626.4K $23.83/SF
− OpEx
−$156.6K −$5.96/SF
NOI
$469.8K $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%
$9,395,520
Cap Rate 7%
$6,711,086
Cap Rate 9%
$5,219,733
Alternative Uses
Best Use
Office B
$6.71M
$5.87M – $7.83M
NOI $469,776 @ 7.0% cap · market cap 8.10%
Second Best
Warehouse
$4.15M
$3.63M – $4.84M
NOI $290,407 @ 7.0% cap · market cap 5.01%
Theoretical Best
Office A
$8.26M
$7.23M – $9.64M
NOI $578,530 @ 7.0% cap · market cap 9.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
22 ft
Clear height
Yes
Heavy power
Location Intelligence
Trade Area within ½ mile
992
Businesses Nearby
Well-served
Demand for This Use
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Versatile industrial space with substantial office programming, high-capacity power, and parking for business operations.
Where is this flex space located?
The property is located at 1375 W Drivers Way Tempe, AZ.
What is the asking price?
The asking price for this property is $5,800,000.
What are key features of this property?
This property features: 26,282 SF flex property at Tempe Business Center; Approximately 5,613 SF mezzanine level; 22‑foot clear heights
