Two-Unit Office
For Sale
$250,000
138-6730 E Mcdowell Rd, Scottsdale, AZ 85256
Two office suites support owner-user occupancy or an investment strategy with month-to-month tenancy in place.
Property Size1,000 SF
Price / SF$250
Days on Market62
Property Features for 138-6730 E Mcdowell Rd
General Information
Standard status
Active
Size
1,000 SF
Additional Details
Highway Access
Yes
Office Units
2
Taxes and HOA fees
Annual Taxes
$725
Listing Agency:
COBE Real Estate, Inc.
(480) 628-6363
Listed By:
Timothy Zaharis · License #BR577140000
(480) 628-6363
Source:
Exprealty
Added: Jun 11
Changed: Aug 11
Last Checked: Aug 11 at 3:54AM
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 COBE Real Estate, Inc.
Investment Insights
Based on property information with market context.
La Oua Plaza includes two office suites, Units 134 and 138, totaling 1,000 SF with 500 SF per unit. Both suites are currently configured for office use and may offer flexibility for conversion to other uses. A month-to-month lease is in place, supporting either continued tenancy or owner-user occupancy.
The property occupies a corner lot near the intersection of 68th St and McDowell Rd in Scottsdale, AZ. More than 34,000 VPD pass the property, and Loop 101 and Loop 202 are minutes away. Desert Botanical Garden is located across the street, providing a prominent nearby reference point for the property.
The property occupies a corner lot near the intersection of 68th St and McDowell Rd in Scottsdale, AZ. More than 34,000 VPD pass the property, and Loop 101 and Loop 202 are minutes away. Desert Botanical Garden is located across the street, providing a prominent nearby reference point for the property.
Key Highlights
- 1,000 SF total across two 500 SF office units
- Units 134 and 138 at La Oua Plaza
- Existing office buildout with potential conversion for other uses
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
$15,832
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
6.33%
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%
$316,640
$316.6K
Cap Rate 7%
$226,171
$226.2K
Cap Rate 9%
$175,911
$175.9K
Market Conditions
NOI Build-Up for 1,000 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
$25.7K $25.68/SF
− Vacancy
−$4.6K −$4.57/SF
EGI
$21.1K $21.11/SF
− OpEx
−$5.3K −$5.28/SF
NOI
$15.8K $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%
$316,640
Cap Rate 7%
$226,171
Cap Rate 9%
$175,911
Alternative Uses
Best Use
Office B
$226.2K
$197.9K – $263.9K
NOI $15,832 @ 7.0% cap · market cap 6.33%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$328.3K
$287.2K – $383.0K
NOI $22,979 @ 7.0% cap · market cap 9.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
678
Businesses Nearby
Explore this area
Business Placement
Demographics for 85256, AZ
4,857
Population
1,120
Households
4.3
Avg Household Size
28
Median Age
9%
College-Educated
78%
High-School Grad
34.2 sq mi
ZIP Area
142
Density / Sq Mi
$51,469
Median Household Income
$35,156
Median Earnings
$561
Median Rent
$132,400
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 units - Two office suites support owner-user occupancy or an investment strategy with month-to-month tenancy in place.
Where is this office units located?
The property is located at 138-6730 E Mcdowell Rd Scottsdale, AZ.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 1,000 SF total across two 500 SF office units; Units 134 and 138 at La Oua Plaza; Existing office buildout with potential conversion for other uses
