Office Building with Rear
For Sale
$319,900
1806 W Sherman Street, Phoenix, AZ 85007
Office building with front parking, freshly painted interior/exterior, new roofing, and a private full bath with kitchenette.
Property Size665 SF
Price / SF$481.05
Days on Market172
Property Features for 1806 W Sherman Street
General Information
Standard status
Active
Size
665 SF
Property subtype
Comm/industry Sale
Zoning
C-3
Listing Agency:
Grayson Real Estate
(602) 418-2950
Listed By:
Keith Grayson · License #BR636932000
(602) 418-0350
Source:
Realtorbevb
Added: Mar 26
Changed: Sep 8
Last Checked: Sep 13 at 11:23AM
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 Grayson Real Estate
Investment Insights
Based on property information with market context.
This office building offers a mix of functional interior space and outdoor use, with tile flooring, a private full bathroom, an open kitchenette, aluminum windows, ceiling fans, and a rear patio. The property has been updated with freshly painted interior and exterior finishes and a new roofing system. For site access and operations, there are two new drive gates, and a front parking area supports arrival and turnover.
The property is zoned C-3, providing a broader framework for commercial uses. There is also additional space toward the rear that could accommodate storage needs, including the option to add shipping containers or build a small warehouse for extra storage, subject to applicable requirements.
Overall, this is a straightforward office building configuration with practical on-site parking, improved exterior and roof, and ready-to-use interior components for a user seeking dedicated private amenities and an outdoor patio area.
The property is zoned C-3, providing a broader framework for commercial uses. There is also additional space toward the rear that could accommodate storage needs, including the option to add shipping containers or build a small warehouse for extra storage, subject to applicable requirements.
Overall, this is a straightforward office building configuration with practical on-site parking, improved exterior and roof, and ready-to-use interior components for a user seeking dedicated private amenities and an outdoor patio area.
Key Highlights
- Office building built in 1936 with C‑3 zoning
- Front parking area plus two new drive gates
- Freshly painted interior and exterior
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
$11,384
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
3.56%
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%
$227,680
$227.7K
Cap Rate 7%
$162,629
$162.6K
Cap Rate 9%
$126,489
$126.5K
Market Conditions
NOI Build-Up for 665 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
$20.4K $30.72/SF
− Vacancy
−$5.3K −$7.90/SF
EGI
$15.2K $22.82/SF
− OpEx
−$3.8K −$5.71/SF
NOI
$11.4K $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%
$227,680
Cap Rate 7%
$162,629
Cap Rate 9%
$126,489
Alternative Uses
Best Use
Office B
$162.6K
$142.3K – $189.7K
NOI $11,384 @ 7.0% cap · market cap 3.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$201.4K
$176.3K – $235.0K
NOI $14,100 @ 7.0% cap · market cap 4.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
957
Businesses Nearby
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Business Placement
Demographics for 85007, AZ
14,442
Population
5,981
Households
2.4
Avg Household Size
36
Median Age
27%
College-Educated
81%
High-School Grad
4.6 sq mi
ZIP Area
3,140
Density / Sq Mi
$55,833
Median Household Income
$43,375
Median Earnings
$1,079
Median Rent
$447,000
Median Home Value
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Market
Vacancy Rate% for Office in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Office units - Office building with front parking, freshly painted interior/exterior, new roofing, and a private full bath with kitchenette.
Where is this office units located?
The property is located at 1806 W Sherman Street Phoenix, AZ.
What is the asking price?
The asking price for this property is $319,900.
What are key features of this property?
This property features: Office building built in 1936 with C‑3 zoning; Front parking area plus two new drive gates; Freshly painted interior and exterior
