Freestanding Office Building with
For Sale
$1,900,000
1725 E Osborn Rd, Phoenix, AZ 85016
Freestanding office building on a 1.04-acre lot with plentiful parking and a brick, stucco, and exposed beam build-out.
Property Size4,903 SF
Lot Size1.04 Acres
Price / SF$387.52
Days on Market69
Property Features for 1725 E Osborn Rd
General Information
Standard status
Active
Size
4,903 SF
Class
B
Lot size
1.04 Acres
Property subtype
Office
Site & Location
Traffic Count
18,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
4,903 SF
Year Built
1973
Listing Agency:
Menlo Group Commercial Real Estate
Listed By:
Steve Berghoff, SIOR, CCIM · License #BR581000000
(480) 206-4548
Source:
Menlocre
Added: Jun 28
Changed: Aug 26
Last Checked: Sep 4 at 2:24AM
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 Menlo Group Commercial Real Estate
Investment Insights
Based on property information with market context.
This freestanding office building offers approximately 4,903 square feet on a large 1.04-acre lot with plentiful parking. The interior build-out features a distinctive mix of brick, stucco, and exposed wooden beams, creating a finished, professional environment for office users. Monument and building signage are available, supporting branding opportunities.
The property sits at the SEC of Osborn Road and 16th Street with frontage on Osborn Road, providing exposure to more than 18,000 vehicles per day. It is positioned in the Downtown Phoenix submarket, with proximity to Phoenix Children’s Hospital and Phoenix Country Club.
For major connectivity, the location provides convenient access to SR-51, I-10, and Loop 202. Downtown Phoenix and Phoenix Sky Harbor International Airport are both less than five miles away.
The property sits at the SEC of Osborn Road and 16th Street with frontage on Osborn Road, providing exposure to more than 18,000 vehicles per day. It is positioned in the Downtown Phoenix submarket, with proximity to Phoenix Children’s Hospital and Phoenix Country Club.
For major connectivity, the location provides convenient access to SR-51, I-10, and Loop 202. Downtown Phoenix and Phoenix Sky Harbor International Airport are both less than five miles away.
Key Highlights
- Freestanding office building built in 1973 with approximately 4,903 SF
- On a large 1.04‑acre lot with plentiful parking
- Brick, stucco, and exposed wooden beam build‑out with a distinctive appearance
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
$83,933
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
4.42%
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%
$1,678,660
$1.7M
Cap Rate 7%
$1,199,043
$1.2M
Cap Rate 9%
$932,589
$932.6K
Market Conditions
NOI Build-Up for 4,903 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
$150.6K $30.72/SF
− Vacancy
−$38.7K −$7.90/SF
EGI
$111.9K $22.82/SF
− OpEx
−$28.0K −$5.71/SF
NOI
$83.9K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /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%
$1,678,660
Cap Rate 7%
$1,199,043
Cap Rate 9%
$932,589
Alternative Uses
Best Use
Office B
$1.20M
$1.05M – $1.40M
NOI $83,933 @ 7.0% cap · market cap 4.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.49M
$1.30M – $1.73M
NOI $103,961 @ 7.0% cap · market cap 5.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
18,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,919
Businesses Nearby
Explore this area
Business Placement
Demographics for 85016, AZ
37,326
Population
21,363
Households
1.7
Avg Household Size
38
Median Age
50%
College-Educated
94%
High-School Grad
8.2 sq mi
ZIP Area
4,552
Density / Sq Mi
$85,085
Median Household Income
$53,781
Median Earnings
$1,575
Median Rent
$508,400
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Freestanding office building on a 1.04-acre lot with plentiful parking and a brick, stucco, and exposed beam build-out.
Where is this office building located?
The property is located at 1725 E Osborn Rd Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Freestanding office building built in 1973 with approximately 4,903 SF; On a large 1.04‑acre lot with plentiful parking; Brick, stucco, and exposed wooden beam build‑out with a distinctive appearance
