Retail Building in Fountain
For Sale
$995,000
16729 E Palisades Blvd, Fountain Hills, AZ 85268
Multi-tenant retail building with high ceilings and ample parking.
Property Size4,180 SF
Price / SF$238.04
Days on Market208
Property Features for 16729 E Palisades Blvd
General Information
Standard status
Active
Size
4,180 SF
Property subtype
Retail
Building Details
Building Size
4,180 SF
Year Built
2012
Listing Agency:
Commercial Properties Inc Tempe
(602) 315-7131
Listed By:
Tyson Breinholt · License #BR517298000
(602) 315-7131
Source:
Cpiaz
Added: Jan 26
Changed: Aug 8
Last Checked: Aug 21 at 4:42AM
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 Commercial Properties Inc Tempe
Investment Insights
Based on property information with market context.
This 4,180 square foot multi-tenant retail building, constructed in 2012, is located in Fountain Hills, Arizona. The property features prominent street frontage in the heart of Fountain Hills’ downtown shopping district. The retail space includes high ceilings and large windows. The open floor plan is suitable for various businesses, including retail stores, offices, and medical offices. Ample parking is available for customers and employees. The property is located minutes from the Fountain Hills Town Center and the Fountain Hills Golf Club, with proximity to restaurants, shops, and other amenities.
Key Highlights
- Prime location in the heart of Fountain Hills' downtown shopping district.
- Multi‑tenant retail building offering investment or owner/user opportunity.
- Built in 2012, the property features a ±4,180 square foot retail space.
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
$72,524
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
7.29%
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%
$1,450,480
$1.5M
Cap Rate 7%
$1,036,057
$1.0M
Cap Rate 9%
$805,822
$805.8K
Market Conditions
NOI Build-Up for 4,180 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
$127.9K $30.60/SF
− Vacancy
−$31.2K −$7.47/SF
EGI
$96.7K $23.13/SF
− OpEx
−$24.2K −$5.78/SF
NOI
$72.5K $17.35/SF
Area
Maricopa County, AZ
Vacancy
24.40%
Lease Rate
$30.60 /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%
$1,450,480
Cap Rate 7%
$1,036,057
Cap Rate 9%
$805,822
Alternative Uses
Best Use
Office B
$1.04M
$906.6K – $1.21M
NOI $72,524 @ 7.0% cap · market cap 7.29%
Second Best
Healthcare Medical
$844.2K
$738.7K – $984.9K
NOI $59,093 @ 7.0% cap · market cap 5.94%
Theoretical Best
Office A
$1.29M
$1.13M – $1.51M
NOI $90,509 @ 7.0% cap · market cap 9.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,362
Businesses Nearby
Explore this area
Business Placement
Demographics for 85268, AZ
24,031
Population
13,429
Households
1.8
Avg Household Size
61
Median Age
50%
College-Educated
97%
High-School Grad
20.5 sq mi
ZIP Area
1,172
Density / Sq Mi
$105,288
Median Household Income
$55,054
Median Earnings
$1,781
Median Rent
$576,700
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?
Retail property - Multi-tenant retail building with high ceilings and ample parking.
Where is this retail property located?
The property is located at 16729 E Palisades Blvd Fountain Hills, AZ.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: Prime location in the heart of Fountain Hills' downtown shopping district.; Multi‑tenant retail building offering investment or owner/user opportunity.; Built in 2012, the property features a ±4,180 square foot retail space.
