Office Building for
For Sale
$1,475,000
1602 S PRIEST Drive, Tempe, AZ 85281
Office building available for sale in Tempe, AZ, totaling 4,997 square feet.
Property Size4,997 SF
Price / SF$295.18
Days on Market120
Property Features for 1602 S PRIEST Drive
General Information
Standard status
Active
Size
4,997 SF
Property subtype
Commercial/Industrial
Listing Agency:
Insight Land & Investments
(602) 385-1515
Listed By:
Jeremy Lovejoy · License #BR541645000
(602) 385-1525
Source:
Exitrealty
Added: May 10
Changed: Sep 1
Last Checked: Sep 6 at 4:49AM
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 Insight Land & Investments
Investment Insights
Based on property information with market context.
This for-sale office building totals 4,997 square feet. The property is offered as a commercial real estate asset suitable for office-oriented occupancy.
The building is located at 1602 S Priest Drive in Tempe, within Maricopa County, Arizona.
Additional details on interior configuration, condition, and unit layout were not provided with the listing information.
The building is located at 1602 S Priest Drive in Tempe, within Maricopa County, Arizona.
Additional details on interior configuration, condition, and unit layout were not provided with the listing information.
Key Highlights
- Office building for sale in Tempe, AZ totaling 4,997 SF
- Parking available: off‑street parking, parking lot, and paved surfaces
- Located in Maricopa County (CountyOrParish: Maricopa)
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
$89,319
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
6.06%
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%
$1,786,380
$1.8M
Cap Rate 7%
$1,275,986
$1.3M
Cap Rate 9%
$992,433
$992.4K
Market Conditions
NOI Build-Up for 4,997 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
$151.7K $30.36/SF
− Vacancy
−$32.6K −$6.53/SF
EGI
$119.1K $23.83/SF
− OpEx
−$29.8K −$5.96/SF
NOI
$89.3K $17.87/SF
Area
Tempe, AZ
Vacancy
21.50%
Lease Rate
$30.36 /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%
$1,786,380
Cap Rate 7%
$1,275,986
Cap Rate 9%
$992,433
Alternative Uses
Best Use
Office B
$1.28M
$1.12M – $1.49M
NOI $89,319 @ 7.0% cap · market cap 6.06%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.57M
$1.37M – $1.83M
NOI $109,996 @ 7.0% cap · market cap 7.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,200
Businesses Nearby
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building available for sale in Tempe, AZ, totaling 4,997 square feet.
Where is this office building located?
The property is located at 1602 S PRIEST Drive Tempe, AZ.
What is the asking price?
The asking price for this property is $1,475,000.
What are key features of this property?
This property features: Office building for sale in Tempe, AZ totaling 4,997 SF; Parking available: off‑street parking, parking lot, and paved surfaces; Located in Maricopa County (CountyOrParish: Maricopa)
