Single-Story Medical Office
For Sale
Contact for pricing
1405 E Mcdowell Rd, Phoenix, AZ 85006
Single-story office building with second-story storage on a major high-traffic corridor near Banner University Medical Center.
Property Size14,780 SF
Price / SF$250
Days on Market117
Property Features for 1405 E Mcdowell Rd
General Information
Standard status
Active
Size
14,780 SF
Property subtype
OFFICE
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Business Included
No
Building Details
Stories
2
Listing Agency:
Avison Young | Phoenix
(480) 994-8155
Listed By:
Kelly Carlon · License #SA669487000
(480) 463-4199
Source:
Moodyscre
Added: May 22
Changed: Sep 9
Last Checked: Sep 15 at 10:59AM
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 Avison Young | Phoenix
Investment Insights
Based on property information with market context.
The property is a single-story office building that also includes additional second-story storage. This configuration supports a range of office and medical uses while keeping the primary work areas on one level.
Located just two miles from Downtown Phoenix, the building sits less than half a mile from Banner University Medical Center and Phoenix Children’s Hospital. It offers strong visibility and frontage along McDowell Road, a major high-traffic corridor, with convenient access to State Route 51 and Interstate 10.
The site also has immediate access to public transit via a Valley Metro bus stop located in front of the building. The surrounding area includes a mix of medical providers, office users, and nearby retail and dining amenities within an established commercial corridor.
Located just two miles from Downtown Phoenix, the building sits less than half a mile from Banner University Medical Center and Phoenix Children’s Hospital. It offers strong visibility and frontage along McDowell Road, a major high-traffic corridor, with convenient access to State Route 51 and Interstate 10.
The site also has immediate access to public transit via a Valley Metro bus stop located in front of the building. The surrounding area includes a mix of medical providers, office users, and nearby retail and dining amenities within an established commercial corridor.
Key Highlights
- Single‑story office building with additional second‑story storage
- Less than 0.5 mile from Banner University Medical Center and Phoenix Children’s Hospital
- 2 miles from Downtown Phoenix
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
$253,015
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
6.85%
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%
$5,060,300
$5.1M
Cap Rate 7%
$3,614,500
$3.6M
Cap Rate 9%
$2,811,278
$2.8M
Market Conditions
NOI Build-Up for 14,780 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
$454.0K $30.72/SF
− Vacancy
−$116.7K −$7.90/SF
EGI
$337.4K $22.82/SF
− OpEx
−$84.3K −$5.71/SF
NOI
$253.0K $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%
$5,060,300
Cap Rate 7%
$3,614,500
Cap Rate 9%
$2,811,278
Alternative Uses
Best Use
Office B
$3.61M
$3.16M – $4.22M
NOI $253,015 @ 7.0% cap · market cap 6.85%
Second Best
Healthcare Medical
$3.01M
$2.63M – $3.51M
NOI $210,704 @ 7.0% cap · market cap 5.70%
Theoretical Best
Office A
$4.48M
$3.92M – $5.22M
NOI $313,389 @ 7.0% cap · market cap 8.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,332
Businesses Nearby
Explore this area
Business Placement
Demographics for 85006, AZ
23,797
Population
10,607
Households
2.2
Avg Household Size
34
Median Age
27%
College-Educated
78%
High-School Grad
4.0 sq mi
ZIP Area
5,949
Density / Sq Mi
$60,742
Median Household Income
$39,899
Median Earnings
$1,168
Median Rent
$376,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Phoenix, AZ
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 - Single-story office building with second-story storage on a major high-traffic corridor near Banner University Medical Center.
Where is this office building located?
The property is located at 1405 E Mcdowell Rd Phoenix, AZ.
What is the asking price?
The asking price for this property is $3,695,000.
What are key features of this property?
This property features: Single‑story office building with additional second‑story storage; Less than 0.5 mile from Banner University Medical Center and Phoenix Children’s Hospital; 2 miles from Downtown Phoenix
