Flex Warehouse with
For Sale
Contact for pricing
1655 W Drake Dr, Tempe, AZ 85283
Recently renovated flex building with 18’ clear height warehouse, 800A 3-phase power, and 12 private offices.
Property Size9,216 SF
Price / SF$303.82
Days on Market268
Property Features for 1655 W Drake Dr
General Information
Standard status
Active
Size
9,216 SF
Property subtype
INDUSTRIAL
Warehouse & Industrial
Clear Height
18 ft
Drive-In Doors
2
Heavy Power
Yes
Sprinkler System
Yes
Additional Details
Highway Access
Yes
Listing Agency:
LevRose Commercial Real Estate
(480) 947-0600
Listed By:
Cameron Miller
(480) 294-6584
Source:
Moodyscre
Added: Dec 12, 2025
Changed: Jul 20
Last Checked: Sep 5 at 1:42PM
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 LevRose Commercial Real Estate
Investment Insights
Based on property information with market context.
This recently renovated flex warehouse includes a fully built-out office component and a clear-span warehouse with practical distribution support. The office features 12 private offices, three conference rooms, two kitchenettes, one training room, and two office storage rooms. The warehouse offers 18’ clear height, 800A 3-phase power, and a portion that is 100% HVAC. There are two grade level doors: one measuring 12’ x 14’ and another measuring 10’ x 8’. The facility is fire sprinklered.
The property has been updated with recent slurry coat and striping, and is noted as being within a 2-minute drive of the I-10 Freeway.
Overall, it’s a functional warehouse-and-office setup designed for users that need both dedicated workspace and conditioned warehouse area in the same facility.
The property has been updated with recent slurry coat and striping, and is noted as being within a 2-minute drive of the I-10 Freeway.
Overall, it’s a functional warehouse-and-office setup designed for users that need both dedicated workspace and conditioned warehouse area in the same facility.
Key Highlights
- Recently renovated flex building with warehouse and office space
- Warehouse features 18’ clear height
- 800A 3‑phase power and fire sprinkler system
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
$164,731
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
5.88%
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%
$3,294,620
$3.3M
Cap Rate 7%
$2,353,300
$2.4M
Cap Rate 9%
$1,830,344
$1.8M
Market Conditions
NOI Build-Up for 9,216 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
$279.8K $30.36/SF
− Vacancy
−$60.2K −$6.53/SF
EGI
$219.6K $23.83/SF
− OpEx
−$54.9K −$5.96/SF
NOI
$164.7K $17.87/SF
Area
Tempe, AZ
Vacancy
21.50%
Lease Rate
$30.36 /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%
$3,294,620
Cap Rate 7%
$2,353,300
Cap Rate 9%
$1,830,344
Alternative Uses
Best Use
Office B
$2.35M
$2.06M – $2.75M
NOI $164,731 @ 7.0% cap · market cap 5.88%
Second Best
Warehouse
$1.45M
$1.27M – $1.70M
NOI $101,834 @ 7.0% cap · market cap 3.64%
Theoretical Best
Office A
$2.90M
$2.54M – $3.38M
NOI $202,866 @ 7.0% cap · market cap 7.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
18 ft
Clear height
2
Drive-in doors
Yes
Heavy power
Yes
Sprinkler system
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,138
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85283, AZ
45,736
Population
20,620
Households
2.2
Avg Household Size
35
Median Age
44%
College-Educated
93%
High-School Grad
8.8 sq mi
ZIP Area
5,197
Density / Sq Mi
$81,073
Median Household Income
$47,213
Median Earnings
$1,669
Median Rent
$409,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Recently renovated flex building with 18’ clear height warehouse, 800A 3-phase power, and 12 private offices.
Where is this flex space located?
The property is located at 1655 W Drake Dr Tempe, AZ.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: Recently renovated flex building with warehouse and office space; Warehouse features 18’ clear height; 800A 3‑phase power and fire sprinkler system
