Prime Location Retail
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1424 W Baseline Rd, Tempe, AZ
High-traffic location near I-10 and Arizona Mills.
Property Size13,813 SF
Lot Size1.46 Acres
Price / SF$412.65
Days on Market1086
Property Features for 1424 W Baseline Rd
General Information
Standard status
Active
Size
13,813 SF
Lot size
1.46 Acres
Property subtype
RETAIL
Listing Agency:
LevRose Commercial Real Estate
(818) 390-0838
Listed By:
Mark Cassell · License #SA690813000
(818) 390-0838
Source:
Moodyscre
Added: Sep 1, 2023
Changed: Aug 8
Last Checked: Aug 8 at 12:26PM
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 LevRose Commercial Real Estate
Investment Insights
Based on property information with market context.
This property benefits from a location with high traffic volume, with over 60,000 vehicles passing through the intersection daily, approximately 42,000 on Baseline Road and 18,000 on Priest Drive. It is situated one block from the I-10, which sees over 157,000 vehicles per day. The property is adjacent to Arizona Mills, a Simon-owned mall. The surrounding area has a dense population, with approximately 19,969 people residing within a one-mile radius and 116,139 within a three-mile radius. The average annual household income in a three-mile radius is $82,000. The property, encompassing 13,813 square feet, includes a drive-through.
Key Highlights
- Drive through included
- High traffic intersection: over 60,000 vehicles per day
- Adjacent to Arizona Mills (Simon owned mall)
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
$191,790
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
3.36%
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%
$3,835,800
$3.8M
Cap Rate 7%
$2,739,857
$2.7M
Cap Rate 9%
$2,131,000
$2.1M
Market Conditions
NOI Build-Up for 13,813 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
$273.5K $19.80/SF
− Vacancy
−$17.8K −$1.29/SF
EGI
$255.7K $18.51/SF
− OpEx
−$63.9K −$4.63/SF
NOI
$191.8K $13.88/SF
Area
Tempe, AZ
Vacancy
6.50%
Lease Rate
$19.80 /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%
$3,835,800
Cap Rate 7%
$2,739,857
Cap Rate 9%
$2,131,000
Alternative Uses
Best Use
Specialty Retail
$2.74M
$2.40M – $3.20M
NOI $191,790 @ 7.0% cap · market cap 3.36%
Second Best
Retail
$2.30M
$2.01M – $2.68M
NOI $160,991 @ 7.0% cap · market cap 2.82%
Theoretical Best
Office A
$4.34M
$3.80M – $5.07M
NOI $304,058 @ 7.0% cap · market cap 5.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
859
Businesses Nearby
216k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 39%
Shops & Services 33%
Home Improvements & Furnishings 22%
Hotels & Casinos 6%
The Home Depot
Home Improvements & Furnishings
47,658 visits/mo
0.2 miles
McDonald's
Dining
24,255 visits/mo
0.1 miles
Circle K
Shops & Services
18,146 visits/mo
0.1 miles
Shell
Shops & Services
14,352 visits/mo
0.1 miles
Denny's
Dining
12,815 visits/mo
0.4 miles
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - High-traffic location near I-10 and Arizona Mills.
Where is this drive through restaurant located?
The property is located at 1424 W Baseline Rd Tempe, AZ.
What is the asking price?
The asking price for this property is $5,700,000.
What are key features of this property?
This property features: Drive through included; High traffic intersection: over 60,000 vehicles per day; Adjacent to Arizona Mills (Simon owned mall)
