Leased Corner Office
For Sale
$1,050,000
16448 N 40th Street, Phoenix, AZ 85032
Office building on a corner lot with ample parking; leased through Oct 2028 and available for sale.
Property Size3,154 SF
Days on Market143
Property Features for 16448 N 40th Street
General Information
Standard status
Active
Size
3,154 SF
Property subtype
Commercial
Zoning
CT, R-O
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$8,303
Building Details
Building Size
3,154 SF
Year Built
2001
Buildings
1
Stories
2
Listing Agency:
Realty of America LLC
(480) 702-5838
Listed By:
Omar Robles · License #BR541635000
Source:
Sunhaven-realestate
Added: Apr 3
Changed: Aug 23
Last Checked: Aug 22 at 9:05AM
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 Realty of America LLC
Investment Insights
Based on property information with market context.
This for-sale office building is positioned on a corner lot and includes ample parking. The offering is described as a retail/C-T, R-O zoned property and is currently leased through October 2028.
Located at 16448 N 40th St, Phoenix, AZ, the property is presented as being in a high-growth corridor. The remarks also note strong traffic counts and excellent visibility.
At the time of this listing, the unit’s key commercial consideration is the existing lease term through Oct 2028.
Located at 16448 N 40th St, Phoenix, AZ, the property is presented as being in a high-growth corridor. The remarks also note strong traffic counts and excellent visibility.
At the time of this listing, the unit’s key commercial consideration is the existing lease term through Oct 2028.
Key Highlights
- Office building on a corner lot with ample parking
- Currently leased through Oct 2028
- Zoned Retail / C‑T and R‑O
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
$53,992
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
5.14%
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%
$1,079,840
$1.1M
Cap Rate 7%
$771,314
$771.3K
Cap Rate 9%
$599,911
$599.9K
Market Conditions
NOI Build-Up for 3,154 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
$96.9K $30.72/SF
− Vacancy
−$24.9K −$7.90/SF
EGI
$72.0K $22.82/SF
− OpEx
−$18.0K −$5.71/SF
NOI
$54.0K $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%
$1,079,840
Cap Rate 7%
$771,314
Cap Rate 9%
$599,911
Alternative Uses
Best Use
Office B
$771.3K
$674.9K – $899.9K
NOI $53,992 @ 7.0% cap · market cap 5.14%
Second Best
Healthcare Medical
$642.3K
$562.0K – $749.4K
NOI $44,963 @ 7.0% cap · market cap 4.28%
Theoretical Best
Office A
$953.4K
$834.2K – $1.11M
NOI $66,737 @ 7.0% cap · market cap 6.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,242
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
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building on a corner lot with ample parking; leased through Oct 2028 and available for sale.
Where is this office building located?
The property is located at 16448 N 40th Street Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: Office building on a corner lot with ample parking; Currently leased through Oct 2028; Zoned Retail / C‑T and R‑O
