Medical Office Suite with Exam
For Sale
$765,000
16515 S 40th St Unit 131, Phoenix, AZ 85048
Clinical layout includes reception, private treatment rooms, a lab, and a staff break area.
Property Size2,178 SF
Price / SF$351.24
Days on Market199
Property Features for 16515 S 40th St Unit 131
General Information
Standard status
Active
Size
2,178 SF
Property subtype
Commercial
Additional Details
Highway Access
Yes
Building Details
Year Built
2005
Listing Agency:
Real Broker
(602) 907-7083
Listed By:
James L Martin · License #BR685216000
Source:
Searchphoenixhousesforsale
Added: Feb 12
Changed: Aug 28
Last Checked: Aug 29 at 10:27AM
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 Real Broker
Investment Insights
Based on property information with market context.
This 2,178-square-foot medical office suite, built in 2005, is currently configured for chiropractic use. The interior includes a reception and waiting area, multiple private treatment or examination rooms, a lab, and a separate staff break room. Plumbing is available at each treatment or exam room, supporting the existing clinical layout.
The suite is located at 16515 S 40th St Unit 131 in Phoenix, with access to Highway 202 and I-10. Shared parking is available throughout the complex. The existing configuration provides a defined patient-facing area, enclosed clinical rooms, and dedicated staff space within a professional commercial condominium.
The suite is located at 16515 S 40th St Unit 131 in Phoenix, with access to Highway 202 and I-10. Shared parking is available throughout the complex. The existing configuration provides a defined patient-facing area, enclosed clinical rooms, and dedicated staff space within a professional commercial condominium.
Key Highlights
- 2,178 SF medical office suite built in 2005
- Currently configured as a chiropractic office
- Reception and waiting area with multiple private treatment or exam rooms
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
$37,285
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
4.87%
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%
$745,700
$745.7K
Cap Rate 7%
$532,643
$532.6K
Cap Rate 9%
$414,278
$414.3K
Market Conditions
NOI Build-Up for 2,178 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
$66.9K $30.72/SF
− Vacancy
−$17.2K −$7.90/SF
EGI
$49.7K $22.82/SF
− OpEx
−$12.4K −$5.71/SF
NOI
$37.3K $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%
$745,700
Cap Rate 7%
$532,643
Cap Rate 9%
$414,278
Alternative Uses
Best Use
Office B
$532.6K
$466.1K – $621.4K
NOI $37,285 @ 7.0% cap · market cap 4.87%
Second Best
Healthcare Medical
$443.6K
$388.1K – $517.5K
NOI $31,050 @ 7.0% cap · market cap 4.06%
Theoretical Best
Office A
$659.7K
$577.3K – $769.7K
NOI $46,181 @ 7.0% cap · market cap 6.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,021
Businesses Nearby
Under-served
Demand for This Use
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
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Family VetCare of Phoenix — 3908 E Chandler Blvd, Phoenix, AZ 85048
Frequently Asked Questions
What type of property is this?
Medical Office Space - Clinical layout includes reception, private treatment rooms, a lab, and a staff break area.
Where is this medical office space located?
The property is located at 16515 S 40th St Unit 131 Phoenix, AZ.
What is the asking price?
The asking price for this property is $765,000.
What are key features of this property?
This property features: 2,178 SF medical office suite built in 2005; Currently configured as a chiropractic office; Reception and waiting area with multiple private treatment or exam rooms
