Office Units with Rear
For Sale
$299,900
1806 W Sherman Street, Phoenix, AZ 85007
Interior and exterior improvements include new LVP flooring, updated plumbing, and a new roofing system.
Property Size665 SF
Days on Market45
Property Features for 1806 W Sherman Street
General Information
Standard status
Active
Size
665 SF
Property subtype
Commercial
Zoning
C-3
Taxes and HOA fees
Annual Taxes
$813
Amenities
private full bathroom
open kitchenette
patio
Building Details
Building Size
665 SF
Year Built
1936
Buildings
1
Stories
1
Listing Agency:
Grayson Real Estate
(602) 418-0350
Listed By:
Keith Grayson · License #BR636932000
(602) 418-0350
Source:
Sunhaven-realestate
Added: Jul 3
Changed: Aug 11
Last Checked: Aug 15 at 1:27PM
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 property combines administrative space with a substantial rear yard suited to parking or storage. The building includes tile flooring, a private full bathroom, an open kitchenette, aluminum windows, and a patio. Recent improvements include new LVP flooring, updated plumbing, a new roofing system, and refreshed interior and exterior finishes.
Located at 1806 W Sherman Street in Phoenix, the property carries C-3 zoning and includes a front parking area. The rear portion provides room for shipping containers or a small warehouse addition, subject to applicable approvals. Constructed in 1936, the property offers a combination of office functionality and outdoor storage capacity.
Located at 1806 W Sherman Street in Phoenix, the property carries C-3 zoning and includes a front parking area. The rear portion provides room for shipping containers or a small warehouse addition, subject to applicable approvals. Constructed in 1936, the property offers a combination of office functionality and outdoor storage capacity.
Key Highlights
- C‑3 zoning
- Rear area accommodates parking or storage
- Potential space for shipping containers or a small warehouse addition
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
3.80%
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 3.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$201.4K
$176.3K – $235.0K
NOI $14,100 @ 7.0% cap · market cap 4.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,736
Businesses Nearby
Explore this area
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
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 units - Interior and exterior improvements include new LVP flooring, updated plumbing, and a new roofing system.
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 $299,900.
What are key features of this property?
This property features: C‑3 zoning; Rear area accommodates parking or storage; Potential space for shipping containers or a small warehouse addition
