Phoenix Retail Property For
For Sale
Contact for pricing
1612 E Southern Ave, Phoenix, AZ
Retail property with secure yard, high visibility, and signage.
Property Size4,814 SF
Lot Size0.34 Acres
Price / SF$176.57
Days on Market474
Property Features for 1612 E Southern Ave
General Information
Standard status
Active
Size
4,814 SF
Lot size
0.34 Acres
Property subtype
RETAIL
Listing Agency:
ORION Investment Real Estate
(480) 634-6934
Listed By:
Michael Douglas · License #SA668345000
(480) 772-8870
Source:
Moodyscre
Added: May 28, 2025
Changed: Aug 12
Last Checked: Sep 13 at 9:02AM
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 ORION Investment Real Estate
Investment Insights
Based on property information with market context.
The property, located in Phoenix, Arizona, is zoned C-2 by the City of Phoenix. It offers high-impact visibility and signage along the busy Southern Avenue corridor. The site is situated minutes from I-10, I-17, and Sky Harbor Airport. It features a secure gated yard, making it suitable for contractors, service businesses, or users requiring outdoor storage. The property contains 4,814 square feet.
Key Highlights
- Priced below replacement cost at $203 PSF.
- Secure gated yard ideal for contractors or businesses needing outdoor storage.
- Zoned C‑2, City of Phoenix.
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
$54,409
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
6.40%
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%
$1,088,180
$1.1M
Cap Rate 7%
$777,271
$777.3K
Cap Rate 9%
$604,544
$604.5K
Market Conditions
NOI Build-Up for 4,814 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
$86.7K $18.00/SF
− Vacancy
−$8.9K −$1.85/SF
EGI
$77.7K $16.15/SF
− OpEx
−$23.3K −$4.84/SF
NOI
$54.4K $11.30/SF
Area
Phoenix, AZ
Vacancy
10.30%
Lease Rate
$18.00 /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%
$1,088,180
Cap Rate 7%
$777,271
Cap Rate 9%
$604,544
Alternative Uses
Best Use
Retail
$777.3K
$680.1K – $906.8K
NOI $54,409 @ 7.0% cap · market cap 6.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.46M
$1.28M – $1.70M
NOI $102,074 @ 7.0% cap · market cap 12.01%
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
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Market
Vacancy Rate% for Retail in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Retail property - Retail property with secure yard, high visibility, and signage.
Where is this retail property located?
The property is located at 1612 E Southern Ave Phoenix, AZ.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Priced below replacement cost at $203 PSF.; Secure gated yard ideal for contractors or businesses needing outdoor storage.; Zoned C‑2, City of Phoenix.
