Tempe Standalone Office
For Sale
Contact for pricing
1702 E McNair Drive, Tempe, AZ 85283
Highly improved office property in Tempe's established business corridor.
Property Size4,999 SF
Price / SF$600.12
Days on Market103
Property Features for 1702 E McNair Drive
General Information
Standard status
Active
Size
4,999 SF
Total Parking Spaces
13
Property subtype
Office
Zoning
R/O - City of Tempe
Lease Type
NNN
Investment Type
Owner/User
Building Details
Year Built
2000
Tenancy
Single
Listing Agency:
MHG Commercial
(602) 750-6986
Listed By:
Nicholas Skogen · License #SA669539000
Source:
Crexi
Added: May 19
Changed: Aug 17
Last Checked: Aug 29 at 1:53AM
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 MHG Commercial
Investment Insights
Based on property information with market context.
The property at 1702 E McNair Drive is a standalone office building in Tempe. The property was designed to create a professional environment that blends functionality, privacy, architectural character, and employee experience. Positioned at the end of a quiet cul-de-sac, the property offers a campus-style atmosphere. The building features expansive glass lines, abundant natural light, private outdoor areas, and collaborative workspace configurations. It is suited for owner-users, creative firms, professional services, medical-related office users, or boutique headquarters operations. Its Tempe location provides access to Loop 101, US-60, and the Phoenix metro area, and is minutes from major employment hubs, Sky Harbor Airport, and Arizona State University. The building layout supports a range of business operations while creating an elevated client and employee experience. Interior improvements include private offices, collaborative bullpen areas, conference rooms, reception space, break areas, and flexible work environments. Large windows allow natural light to flow throughout the building. The property also features a fully enclosed private patio and yard area with individual office access points, enhancing the campus-like environment and providing additional opportunities for outdoor meetings or employee gathering areas. The property size is 4999 square feet.
Key Highlights
- Highly improved, standalone office property in a prime Tempe location with immediate access to Loop 101, US‑60, and Sky Harbor Airport.
- Unique campus‑style atmosphere with private outdoor areas, expansive glass lines, and abundant natural light, creating an exceptional employee experience.
- Versatile design suitable for various uses, including owner‑users, creative firms, professional services, medical‑related offices, or boutique headquarters.
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
$89,354
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
2.98%
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%
$1,787,080
$1.8M
Cap Rate 7%
$1,276,486
$1.3M
Cap Rate 9%
$992,822
$992.8K
Market Conditions
NOI Build-Up for 4,999 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
$151.8K $30.36/SF
− Vacancy
−$32.6K −$6.53/SF
EGI
$119.1K $23.83/SF
− OpEx
−$29.8K −$5.96/SF
NOI
$89.4K $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%
$1,787,080
Cap Rate 7%
$1,276,486
Cap Rate 9%
$992,822
Alternative Uses
Best Use
Office B
$1.28M
$1.12M – $1.49M
NOI $89,354 @ 7.0% cap · market cap 2.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.57M
$1.38M – $1.83M
NOI $110,040 @ 7.0% cap · market cap 3.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
512
Businesses Nearby
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?
Office building - Highly improved office property in Tempe's established business corridor.
Where is this office building located?
The property is located at 1702 E McNair Drive Tempe, AZ.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Highly improved, standalone office property in a prime Tempe location with immediate access to Loop 101, US‑60, and Sky Harbor Airport.; Unique campus‑style atmosphere with private outdoor areas, expansive glass lines, and abundant natural light, creating an exceptional employee experience.; Versatile design suitable for various uses, including owner‑users, creative firms, professional services, medical‑related offices, or boutique headquarters.
