Recently Renovated Office
For Sale
$1,400,000
15601 N 40th St, Phoenix, AZ 85032
Renovated 3,430-square-foot office condo along 40th Street, north of Greenway Rd, in North Paradise Valley.
Property Size3,430 SF
Price / SF$408.16
Days on Market204
Property Features for 15601 N 40th St
General Information
Standard status
Active
Size
3,430 SF
Class
B
Property subtype
Multi Tenant Office
Building Details
Building Size
3,430 SF
Listing Agency:
R.O.I. Properties
Listed By:
Beth Jo Zeitzer · License #BR044331000
(602) 319-1326
Source:
Thebrokerlist
Added: Feb 18
Changed: Sep 6
Last Checked: Sep 10 at 5:23AM
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 R.O.I. Properties
Investment Insights
Based on property information with market context.
The subject property is a 3,430-square-foot office condo located along 40th Street, just north of Greenway Rd. The space has been recently renovated and is up to date with the latest finishes, offering a turn-key option for office use. The owner is currently occupying the condo, and it is expected to be delivered vacant at close of escrow.
The property is located within the North Paradise Valley office submarket. It is presented as suitable for either medical or general office users.
As an office condo, the building is configured for professional use within a dedicated suite setting, providing a defined workplace footprint for an incoming tenant or buyer.
The property is located within the North Paradise Valley office submarket. It is presented as suitable for either medical or general office users.
As an office condo, the building is configured for professional use within a dedicated suite setting, providing a defined workplace footprint for an incoming tenant or buyer.
Key Highlights
- Renovated 3,430‑square‑foot office condo on 40th Street, just north of Greenway Rd
- Located in the North Paradise Valley office submarket
- Suitable for medical or general office users
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
$58,717
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
4.19%
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%
$1,174,340
$1.2M
Cap Rate 7%
$838,814
$838.8K
Cap Rate 9%
$652,411
$652.4K
Market Conditions
NOI Build-Up for 3,430 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
$105.4K $30.72/SF
− Vacancy
−$27.1K −$7.90/SF
EGI
$78.3K $22.82/SF
− OpEx
−$19.6K −$5.71/SF
NOI
$58.7K $17.12/SF
Area
ZIP 85032
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%
$1,174,340
Cap Rate 7%
$838,814
Cap Rate 9%
$652,411
Alternative Uses
Best Use
Office B
$838.8K
$734.0K – $978.6K
NOI $58,717 @ 7.0% cap · market cap 4.19%
Second Best
Healthcare Medical
$698.5K
$611.2K – $815.0K
NOI $48,898 @ 7.0% cap · market cap 3.49%
Theoretical Best
Office A
$1.04M
$907.2K – $1.21M
NOI $72,577 @ 7.0% cap · market cap 5.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
480
Businesses Nearby
Explore this area
Business Placement
Demographics for 85032, AZ
68,710
Population
30,386
Households
2.3
Avg Household Size
38
Median Age
34%
College-Educated
89%
High-School Grad
12.4 sq mi
ZIP Area
5,541
Density / Sq Mi
$74,331
Median Household Income
$44,790
Median Earnings
$1,492
Median Rent
$387,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Office units - Renovated 3,430-square-foot office condo along 40th Street, north of Greenway Rd, in North Paradise Valley.
Where is this office units located?
The property is located at 15601 N 40th St 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: Renovated 3,430‑square‑foot office condo on 40th Street, just north of Greenway Rd; Located in the North Paradise Valley office submarket; Suitable for medical or general office users
