Freestanding Retail Building For
For Sale
Contact for pricing
1535 E University Dr, Mesa, AZ 85203
Newly renovated retail building on major thoroughfare, excellent visibility.
Property Size12,536 SF
Price / SF$143.59
Days on Market778
Property Features for 1535 E University Dr
General Information
Standard status
Active
Size
12,536 SF
Total Parking Spaces
30
Property subtype
Retail
Zoning
LC - Mesa
Occupancy
100%
Lease Type
NNN
Building Details
Year Built
1980
Year Renovated
2024
Buildings
2
Tenancy
Single
Listing Agency:
Commercial Properties Inc.
Listed By:
Dallin Pace · License #AZ BR676008000
(480) 522-2774
Source:
Crexi
Added: Jul 22, 2024
Changed: Aug 24
Last Checked: Sep 7 at 2:20AM
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 Commercial Properties Inc.
Investment Insights
Based on property information with market context.
A newly renovated freestanding retail building is available for sale, subject to a 60-day notice. The property is situated on a major thoroughfare, offering excellent visibility and accessibility. The surrounding area features a diverse mix of residential neighborhoods, businesses, and educational institutions. Its central location provides convenient access to downtown Mesa. The property size is 12536 square feet.
Key Highlights
- Newly renovated freestanding retail building.
- Excellent visibility and accessibility** on a major thoroughfare.
- Central location with easy access to downtown Mesa.
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
$111,019
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
6.17%
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%
$2,220,380
$2.2M
Cap Rate 7%
$1,585,986
$1.6M
Cap Rate 9%
$1,233,544
$1.2M
Market Conditions
NOI Build-Up for 12,536 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
$170.0K $13.56/SF
− Vacancy
−$11.4K −$0.91/SF
EGI
$158.6K $12.65/SF
− OpEx
−$47.6K −$3.80/SF
NOI
$111.0K $8.86/SF
Area
Mesa, AZ
Vacancy
6.70%
Lease Rate
$13.56 /SF/Yr
Expense Ratio
30.00%
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%
$2,220,380
Cap Rate 7%
$1,585,986
Cap Rate 9%
$1,233,544
Alternative Uses
Best Use
Retail
$1.59M
$1.39M – $1.85M
NOI $111,019 @ 7.0% cap · market cap 6.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.44M
$3.01M – $4.01M
NOI $240,535 @ 7.0% cap · market cap 13.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,072
Businesses Nearby
129k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 34%
Dining 28%
Groceries 23%
Apparel 11%
Food City Arizona
Groceries
30,161 visits/mo
0.5 miles
Circle K
Shops & Services
16,684 visits/mo
0.4 miles
Wells Fargo
Shops & Services
12,774 visits/mo
0.4 miles
Jack in the Box
Dining
12,210 visits/mo
0.5 miles
Panda Express
Dining
11,961 visits/mo
0.5 miles
Demographics for 85203, AZ
37,962
Population
14,020
Households
2.7
Avg Household Size
33
Median Age
29%
College-Educated
91%
High-School Grad
9.3 sq mi
ZIP Area
4,082
Density / Sq Mi
$72,851
Median Household Income
$40,524
Median Earnings
$1,388
Median Rent
$388,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Newly renovated retail building on major thoroughfare, excellent visibility.
Where is this retail space located?
The property is located at 1535 E University Dr Mesa, AZ.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Newly renovated freestanding retail building.; Excellent visibility and accessibility** on a major thoroughfare.; Central location with easy access to downtown Mesa.
