Office Unit in Professional
For Sale
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16515 S 40th St, Phoenix, AZ 85048
Office condo offering a dedicated commercial workspace within a professional office development.
Property Size2,488 SF
Price / SF$333.50
Days on Market101
Property Features for 16515 S 40th St
General Information
Standard status
Active
Size
2,488 SF
Net Rentable
2,488 SF
Property subtype
OFFICE
Listing Agency:
Colliers | Phoenix
(602) 222-5000
Listed By:
Bob Broyles · License #BR005344000
(602) 615-6810
Source:
Moodyscre
Added: Jun 8
Changed: Aug 14
Last Checked: Sep 15 at 10:18AM
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 Colliers | Phoenix
Investment Insights
Based on property information with market context.
Office condo available in Foothills Professional Village at 16515 South 40th Street in Phoenix. Building 9, Unit 121 comprises approximately 2,488 rental square feet and is positioned within a professional office development.
The property provides a defined office unit for an owner-user or office tenant seeking space in the Phoenix market. Its condominium format supports a distinct commercial occupancy within the larger professional village.
The property provides a defined office unit for an owner-user or office tenant seeking space in the Phoenix market. Its condominium format supports a distinct commercial occupancy within the larger professional village.
Key Highlights
- Approximately 2,488 rental square feet
- Office condo in Foothills Professional Village
- Building 9, Unit 121
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
$42,591
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
5.13%
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%
$851,820
$851.8K
Cap Rate 7%
$608,443
$608.4K
Cap Rate 9%
$473,233
$473.2K
Market Conditions
NOI Build-Up for 2,488 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
$76.4K $30.72/SF
− Vacancy
−$19.6K −$7.90/SF
EGI
$56.8K $22.82/SF
− OpEx
−$14.2K −$5.71/SF
NOI
$42.6K $17.12/SF
Area
Phoenix, AZ
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%
$851,820
Cap Rate 7%
$608,443
Cap Rate 9%
$473,233
Alternative Uses
Best Use
Office B
$608.4K
$532.4K – $709.9K
NOI $42,591 @ 7.0% cap · market cap 5.13%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$753.6K
$659.4K – $879.3K
NOI $52,755 @ 7.0% cap · market cap 6.36%
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
1,021
Businesses Nearby
Explore this area
Business Placement
Demographics for 85048, AZ
34,524
Population
14,369
Households
2.4
Avg Household Size
42
Median Age
62%
College-Educated
98%
High-School Grad
10.1 sq mi
ZIP Area
3,418
Density / Sq Mi
$123,198
Median Household Income
$70,210
Median Earnings
$1,995
Median Rent
$538,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Office units - Office condo offering a dedicated commercial workspace within a professional office development.
Where is this office units located?
The property is located at 16515 S 40th St Phoenix, AZ.
What is the asking price?
The asking price for this property is $829,738.
What are key features of this property?
This property features: Approximately 2,488 rental square feet; Office condo in Foothills Professional Village; Building 9, Unit 121
