Freestanding Flex
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For Sale
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1705-1725 W Ruby Dr, Tempe, AZ 85284
Freestanding commercial property combining office, showroom, and warehouse functions in a single building.
Property Size38,225 SF
Price / SF$285.15
Days on Market7
Property Features for 1705-1725 W Ruby Dr
General Information
Standard status
Active
Size
38,225 SF
Total Parking Spaces
150
Property subtype
RETAIL
Zoning
RCC
Warehouse & Industrial
Clear Height
24 ft
Warehouse Space
22,883 SF
Office Build-Out
15,342 SF
Dock-High Doors
5
Conditioned Warehouse
Yes
Additional Details
Asking Price
$10,900,000
Amenities
Attractive Landscaping
Building Details
Year Built
2007
Buildings
1
Building Size
38,225 SF
Listing Agency:
Lee & Associates | Phoenix
(602) 954-3748
Listed By:
Rick Robertson
Source:
Moodyscre
Added: Aug 4
Changed: Aug 9
Last Checked: Aug 10 at 4:27AM
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 Lee & Associates | Phoenix
Investment Insights
Based on property information with market context.
This freestanding flex property at 1705-1725 W Ruby Dr in Tempe contains 38,225 SF of building area. The configuration includes 15,342 SF of office and showroom space alongside a 22,883 SF warehouse with evaporative cooling. Built in 2007, the facility offers 24’ clear height for warehouse operations and includes seven roll-up truck doors supported by a five-position truckwell.
The site provides parking for 150 cars and is subject to RCC zoning in the City of Tempe. Landscaping is also included as part of the property improvements. The combination of office, display, and warehouse areas supports a range of flex-oriented commercial operations within one freestanding facility.
The site provides parking for 150 cars and is subject to RCC zoning in the City of Tempe. Landscaping is also included as part of the property improvements. The combination of office, display, and warehouse areas supports a range of flex-oriented commercial operations within one freestanding facility.
Key Highlights
- 38,225 SF freestanding building constructed in 2007
- 15,342 SF of office showroom space
- 22,883 SF warehouse with EVAP cooling
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
$683,251
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
6.27%
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%
$13,665,020
$13.7M
Cap Rate 7%
$9,760,729
$9.8M
Cap Rate 9%
$7,591,678
$7.6M
Market Conditions
NOI Build-Up for 38,225 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
$1.16M $30.36/SF
− Vacancy
−$249.5K −$6.53/SF
EGI
$911.0K $23.83/SF
− OpEx
−$227.8K −$5.96/SF
NOI
$683.3K $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%
$13,665,020
Cap Rate 7%
$9,760,729
Cap Rate 9%
$7,591,678
Alternative Uses
Best Use
Office B
$9.76M
$8.54M – $11.39M
NOI $683,251 @ 7.0% cap · market cap 6.27%
Second Best
Retail
$6.36M
$5.57M – $7.43M
NOI $445,512 @ 7.0% cap · market cap 4.09%
Theoretical Best
Office A
$12.02M
$10.52M – $14.02M
NOI $841,425 @ 7.0% cap · market cap 7.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
24 ft
Clear height
5
Dock-high doors
Location Intelligence
Trade Area within ½ mile
978
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 85284, AZ
18,638
Population
7,589
Households
2.5
Avg Household Size
45
Median Age
69%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
2,389
Density / Sq Mi
$154,663
Median Household Income
$64,288
Median Earnings
$2,162
Median Rent
$646,300
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 - Freestanding commercial property combining office, showroom, and warehouse functions in a single building.
Where is this flex space located?
The property is located at 1705-1725 W Ruby Dr Tempe, AZ.
What is the asking price?
The asking price for this property is $10,900,000.
What are key features of this property?
This property features: 38,225 SF freestanding building constructed in 2007; 15,342 SF of office showroom space; 22,883 SF warehouse with EVAP cooling
