Medical Office Investment
For Sale
Contact for pricing
1515 E Osborn Rd, Phoenix, AZ 85014
Two-building medical office investment with long-term stabilized tenants and 96% occupancy on 2.4 acres.
Property Size32,687 SF
Lot Size2.40 Acres
Price / SF$212.62
Days on Market139
Property Features for 1515 E Osborn Rd
General Information
Standard status
Active
Size
32,687 SF
Class
B
Lot size
2.40 Acres
Property subtype
Office
Zoning
R-5
Occupancy
97%
Building Details
Buildings
2
Stories
1
Tenancy
Multi
Listing Agency:
Transwestern Phoenix
Listed By:
Kathleen Morgan · License #AZ BR111492000
(602) 956-5000
Source:
Crexi
Added: Apr 20
Changed: Sep 5
Last Checked: Sep 4 at 6:27PM
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 Transwestern Phoenix
Investment Insights
Based on property information with market context.
This medical office investment includes approximately 32,687 square feet across two buildings and is described as being 96% occupied. The property features long-term, stabilized tenants.
Located at 1515 E Osborn Rd in Central Phoenix, the project is in close proximity to multiple major hospitals. The site is zoned R-5, which the seller notes may allow potential conversion opportunities, along with strong and stable cash flow.
Located at 1515 E Osborn Rd in Central Phoenix, the project is in close proximity to multiple major hospitals. The site is zoned R-5, which the seller notes may allow potential conversion opportunities, along with strong and stable cash flow.
Key Highlights
- Two‑building medical office totaling 32,687 SF on 2.4 acres
- 96% occupied with long‑term, stabilized tenants
- Zoned R‑5, allowing for potential conversion opportunities
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
$559,560
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
8.05%
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%
$11,191,200
$11.2M
Cap Rate 7%
$7,993,714
$8.0M
Cap Rate 9%
$6,217,333
$6.2M
Market Conditions
NOI Build-Up for 32,687 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
$1.00M $30.72/SF
− Vacancy
−$258.1K −$7.90/SF
EGI
$746.1K $22.82/SF
− OpEx
−$186.5K −$5.71/SF
NOI
$559.6K $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%
$11,191,200
Cap Rate 7%
$7,993,714
Cap Rate 9%
$6,217,333
Alternative Uses
Best Use
Office B
$7.99M
$6.99M – $9.33M
NOI $559,560 @ 7.0% cap · market cap 8.05%
Second Best
Healthcare Medical
$6.66M
$5.82M – $7.77M
NOI $465,986 @ 7.0% cap · market cap 6.70%
Theoretical Best
Office A
$9.90M
$8.66M – $11.55M
NOI $693,082 @ 7.0% cap · market cap 9.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,148
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85014, AZ
26,381
Population
14,778
Households
1.8
Avg Household Size
37
Median Age
43%
College-Educated
90%
High-School Grad
4.0 sq mi
ZIP Area
6,595
Density / Sq Mi
$69,995
Median Household Income
$48,465
Median Earnings
$1,339
Median Rent
$447,500
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-building medical office investment with long-term stabilized tenants and 96% occupancy on 2.4 acres.
Where is this medical office space located?
The property is located at 1515 E Osborn Rd Phoenix, AZ.
What is the asking price?
The asking price for this property is $6,950,000.
What are key features of this property?
This property features: Two‑building medical office totaling 32,687 SF on 2.4 acres; 96% occupied with long‑term, stabilized tenants; Zoned R‑5, allowing for potential conversion opportunities
