Freestanding Single-Story Office
New
For Sale
$1,295,000
1701 S MILL Avenue, Tempe, AZ 85281
Vacant office property offering immediate occupancy along Tempe’s Mill Avenue corridor.
Property Size2,964 SF
Days on Market4
Property Features for 1701 S MILL Avenue
General Information
Standard status
Active
Size
2,964 SF
Property subtype
COMMERCIAL
Taxes and HOA fees
Annual Taxes
$6,902
Building Details
Building Size
2,964 SF
Year Built
1978
Buildings
1
Stories
1
Tenancy
Single
Owner Occupied
No
Listing Agency:
Midland Real Estate Alliance
(480) 347-5186
Listed By:
Dalen M Linnerson
(480) 347-5186
Source:
Gillettegroupaz
Added: Aug 18
Changed: Aug 21
Last Checked: Aug 21 at 3:50AM
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 Midland Real Estate Alliance
Investment Insights
Based on property information with market context.
This freestanding office property consists of a single-level building constructed in 1978. The premises are fully vacant and available for immediate occupancy, providing a straightforward opportunity for an owner-user or a buyer seeking a single-tenant office asset.
The property is located at 1701 S Mill Avenue in Tempe, along the Mill Avenue corridor and near Downtown Tempe and Arizona State University. Its existing office configuration and vacant status support direct occupancy without an existing tenant in place.
The property is located at 1701 S Mill Avenue in Tempe, along the Mill Avenue corridor and near Downtown Tempe and Arizona State University. Its existing office configuration and vacant status support direct occupancy without an existing tenant in place.
Key Highlights
- Freestanding, single‑story office building
- Fully vacant and available for immediate occupancy
- Built in 1978
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
$52,980
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
4.09%
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%
$1,059,600
$1.1M
Cap Rate 7%
$756,857
$756.9K
Cap Rate 9%
$588,667
$588.7K
Market Conditions
NOI Build-Up for 2,964 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
$90.0K $30.36/SF
− Vacancy
−$19.3K −$6.53/SF
EGI
$70.6K $23.83/SF
− OpEx
−$17.7K −$5.96/SF
NOI
$53.0K $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%
$1,059,600
Cap Rate 7%
$756,857
Cap Rate 9%
$588,667
Alternative Uses
Best Use
Office B
$756.9K
$662.3K – $883.0K
NOI $52,980 @ 7.0% cap · market cap 4.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$932.1K
$815.6K – $1.09M
NOI $65,245 @ 7.0% cap · market cap 5.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,264
Businesses Nearby
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
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?
Office building - Vacant office property offering immediate occupancy along Tempe’s Mill Avenue corridor.
Where is this office building located?
The property is located at 1701 S MILL Avenue Tempe, AZ.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: Freestanding, single‑story office building; Fully vacant and available for immediate occupancy; Built in 1978
