Medical Office with Covered
For Sale
Contact for pricing
15601 N 40th St, Phoenix, AZ 85032
Recently renovated office building with 14 covered parking spaces and a flexible layout for private offices.
Property Size3,430 SF
Price / SF$395.04
Days on Market126
Property Features for 15601 N 40th St
General Information
Standard status
Active
Size
3,430 SF
Total Parking Spaces
14
Property subtype
OFFICE
Listing Agency:
R.O.I. Properties
(602) 319-1326
Listed By:
Beth Jo Zeitzer · License #BR044331000
Source:
Moodyscre
Added: May 14
Changed: Jul 28
Last Checked: Sep 15 at 9:23AM
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.
This recently renovated office building offers updated, contemporary finishes throughout. The property includes 14 covered parking spaces and a flexible layout that can support approximately 8 to 10 private offices.
Located in North Phoenix just north of Greenway, the building is positioned for strong visibility. The space is described as suitable for medical or general office use, with an owner-user ready-to-occupy option.
For touring, please schedule with the broker(s) and do not disturb the occupant.
Located in North Phoenix just north of Greenway, the building is positioned for strong visibility. The space is described as suitable for medical or general office use, with an owner-user ready-to-occupy option.
For touring, please schedule with the broker(s) and do not disturb the occupant.
Key Highlights
- Recently renovated office building with updated, contemporary finishes throughout
- Flexible office layout expandable to approximately 8 to 10 private offices
- Ideal for medical or general office use
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
4.33%
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 4.33%
Second Best
Healthcare Medical
$698.5K
$611.2K – $815.0K
NOI $48,898 @ 7.0% cap · market cap 3.61%
Theoretical Best
Office A
$1.04M
$907.2K – $1.21M
NOI $72,577 @ 7.0% cap · market cap 5.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
480
Businesses Nearby
Balanced
Demand for This Use
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Recently renovated office building with 14 covered parking spaces and a flexible layout for private offices.
Where is this medical office space located?
The property is located at 15601 N 40th St Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,355,000.
What are key features of this property?
This property features: Recently renovated office building with updated, contemporary finishes throughout; Flexible office layout expandable to approximately 8 to 10 private offices; Ideal for medical or general office use
