Freestanding Restaurant
For Sale
$1,400,000
Pending
1516 E THOMAS Road, Phoenix, AZ 85014
The property includes C-2 zoning, on-site parking, and restaurant-related improvements completed in 2022.
Property Size2,782 SF
Lot Size0.75 Acres
Days on Market146
Property Features for 1516 E THOMAS Road
General Information
Standard status
Pending
Size
2,782 SF
Total Parking Spaces
34
Lot size
0.75 Acres
Property subtype
Commercial/Industrial
Zoning
C-2
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$13,209
Building Details
Year Built
1987
Year Renovated
2022
Buildings
1
Listing Agency:
Cambridge Properties
(602) 788-1700
Listed By:
Keith M Mishkin · License #BR039542000
(602) 788-1700
Source:
Exitrealty
Added: Apr 8
Changed: Aug 30
Last Checked: Aug 30 at 7:08PM
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 Cambridge Properties
Investment Insights
Based on property information with market context.
This freestanding restaurant property occupies an approximately 0.75-acre C-2 zoned parcel along Thomas Road in Phoenix. The building includes restaurant improvements completed in 2022, including kitchen equipment, flooring, ceilings, plumbing, HVAC modifications, lighting, and updated dining areas. On-site parking totals 34 spaces, and the site configuration may accommodate drive-thru integration or changes to outdoor and parking areas.
The property is situated in Midtown Phoenix near dense residential areas and major arterials. A billboard lease is in place through 2028, providing an additional income-producing component. The site is positioned for restaurant, quick-service restaurant, or freestanding retail use, subject to applicable approvals.
The property is situated in Midtown Phoenix near dense residential areas and major arterials. A billboard lease is in place through 2028, providing an additional income-producing component. The site is positioned for restaurant, quick-service restaurant, or freestanding retail use, subject to applicable approvals.
Key Highlights
- Approximately 0.75‑acre C‑2 zoned parcel on Thomas Road
- Freestanding restaurant building with 34 parking spaces
- Restaurant improvements completed in 2022
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
$41,463
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
2.96%
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%
$829,260
$829.3K
Cap Rate 7%
$592,329
$592.3K
Cap Rate 9%
$460,700
$460.7K
Market Conditions
NOI Build-Up for 2,782 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
$60.1K $21.60/SF
− Vacancy
−$4.8K −$1.73/SF
EGI
$55.3K $19.87/SF
− OpEx
−$13.8K −$4.97/SF
NOI
$41.5K $14.90/SF
Area
Phoenix, AZ
Vacancy
8.00%
Lease Rate
$21.60 /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%
$829,260
Cap Rate 7%
$592,329
Cap Rate 9%
$460,700
Alternative Uses
Best Use
Specialty Retail
$592.3K
$518.3K – $691.1K
NOI $41,463 @ 7.0% cap · market cap 2.96%
Second Best
Retail
$449.2K
$393.0K – $524.1K
NOI $31,443 @ 7.0% cap · market cap 2.25%
Theoretical Best
Office A
$842.7K
$737.4K – $983.1K
NOI $58,988 @ 7.0% cap · market cap 4.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,959
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 Retail 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?
Conventional restaurant - The property includes C-2 zoning, on-site parking, and restaurant-related improvements completed in 2022.
Where is this conventional restaurant located?
The property is located at 1516 E THOMAS Road Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Approximately 0.75‑acre C‑2 zoned parcel on Thomas Road; Freestanding restaurant building with 34 parking spaces; Restaurant improvements completed in 2022
