Showroom With Covered
For Sale
$799,000
Pending
1620 N 87th St, Scottsdale, AZ 85257
C-3-zoned commercial property with office space and a covered service area near Loop 101.
Property Size2,614 SF
Days on Market189
Property Features for 1620 N 87th St
General Information
Standard status
Pending
Size
2,614 SF
Property subtype
Commercial
Zoning
C-3
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1963
Listing Agency:
Insight Land & Investments
(602) 385-1525
Listed By:
Jeremy Lovejoy · License #BR541645000
Source:
Phoenixhomehunter
Added: Feb 22
Changed: Aug 30
Last Checked: Aug 30 at 5:50PM
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 Scottsdale commercial property is configured as a former automotive sales location with dedicated office space and a covered shop area. The building was constructed in 1963 and carries C-3 zoning, which may support select light industrial uses subject to applicable requirements.
The property is located at 1620 N 87th St, just west of Loop 101 and off East McDowell Road. Its existing combination of showroom-oriented space, offices, and covered shop improvements provides a varied commercial layout for evaluation under the current zoning designation.
The property is located at 1620 N 87th St, just west of Loop 101 and off East McDowell Road. Its existing combination of showroom-oriented space, offices, and covered shop improvements provides a varied commercial layout for evaluation under the current zoning designation.
Key Highlights
- Showroom‑oriented property with office space and a covered shop area
- C‑3 zoning may support select light industrial uses
- Located at 1620 N 87th St in Scottsdale, AZ 85257
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
$60,067
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
7.52%
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%
$1,201,340
$1.2M
Cap Rate 7%
$858,100
$858.1K
Cap Rate 9%
$667,411
$667.4K
Market Conditions
NOI Build-Up for 2,614 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
$87.8K $33.60/SF
− Vacancy
−$2.0K −$0.77/SF
EGI
$85.8K $32.83/SF
− OpEx
−$25.7K −$9.85/SF
NOI
$60.1K $22.98/SF
Area
Scottsdale, AZ
Vacancy
2.30%
Lease Rate
$33.60 /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%
$1,201,340
Cap Rate 7%
$858,100
Cap Rate 9%
$667,411
Alternative Uses
Best Use
Retail
$858.1K
$750.8K – $1.00M
NOI $60,067 @ 7.0% cap · market cap 7.52%
Second Best
Industrial
$516.7K
$452.1K – $602.8K
NOI $36,166 @ 7.0% cap · market cap 4.53%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
508
Businesses Nearby
60k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
QuikTrip
Shops & Services
40,373 visits/mo
0.3 miles
Circle K
Shops & Services
7,940 visits/mo
0.4 miles
ARCO
Shops & Services
4,336 visits/mo
0.2 miles
7-Eleven
Shops & Services
4,202 visits/mo
0.2 miles
Public Storage
Shops & Services
1,503 visits/mo
0.3 miles
Demographics for 85257, AZ
29,187
Population
16,392
Households
1.8
Avg Household Size
39
Median Age
46%
College-Educated
95%
High-School Grad
6.9 sq mi
ZIP Area
4,230
Density / Sq Mi
$79,828
Median Household Income
$54,580
Median Earnings
$1,812
Median Rent
$453,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Showroom - C-3-zoned commercial property with office space and a covered service area near Loop 101.
Where is this showroom located?
The property is located at 1620 N 87th St Scottsdale, AZ.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: Showroom‑oriented property with office space and a covered shop area; C‑3 zoning may support select light industrial uses; Located at 1620 N 87th St in Scottsdale, AZ 85257
