Income Property Near
For Sale
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1818 E Baseline Rd, Mesa, AZ 85204
Income-producing property with potential for increased cap rate.
Property Size9,101 SF
Price / SF$247.23
Days on Market663
Property Features for 1818 E Baseline Rd
General Information
Standard status
Active
Size
9,101 SF
Class
A
Total Parking Spaces
31
Property subtype
Mixed Use, Office
Zoning
C-1, C-N
Lease Type
Absolute Net
Net Operating Income
$156,816
Building Details
Year Renovated
1996
Buildings
2
Stories
2
Units
3
Tenancy
Multi
Listing Agency:
Delex Realty
(602) 910-3002
Listed By:
Lisa A. Ross · License #AZ SA561439000
Source:
Crexi
Added: Oct 19, 2024
Changed: Aug 11
Last Checked: Aug 11 at 12:54PM
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 Delex Realty
Investment Insights
Based on property information with market context.
This income-producing property, offered below market value, currently features a cap rate of 6.39% with the potential to reach 7.5% upon leasing of the basement office space. The basement office offers 1,900 square feet of space. Strategically positioned across from Gilbert, the property benefits from an excellent location at Mesa prices. Situated just west of Gilbert Road and near the US-60 freeway, the property provides convenient accessibility. The property is ideal for a medical practice or other professional services. The Learning Center tenant has 3 years remaining on a 5-year lease, while the Dermatology tenant has 2 years remaining on their 5-year lease. The property includes a 2,400-square-foot pediatric office and a 4,800-square-foot Pinnacle Dermatology office. The total property size is 9,101 square feet.
Key Highlights
- High CAP Rate: Current 6.39% with potential to reach 7.5%.
- Below Market Value: Opportunity to acquire property at a discounted price.
- Seller Financing: Seller will carry $1 million.
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
$152,314
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
6.77%
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%
$3,046,280
$3.0M
Cap Rate 7%
$2,175,914
$2.2M
Cap Rate 9%
$1,692,378
$1.7M
Market Conditions
NOI Build-Up for 9,101 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
$252.3K $27.72/SF
− Vacancy
−$49.2K −$5.41/SF
EGI
$203.1K $22.31/SF
− OpEx
−$50.8K −$5.58/SF
NOI
$152.3K $16.74/SF
Area
ZIP 85204
Vacancy
19.50%
Lease Rate
$27.72 /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%
$3,046,280
Cap Rate 7%
$2,175,914
Cap Rate 9%
$1,692,378
Alternative Uses
Best Use
Office B
$2.18M
$1.90M – $2.54M
NOI $152,314 @ 7.0% cap · market cap 6.77%
Second Best
Healthcare Medical
$1.52M
$1.33M – $1.77M
NOI $106,154 @ 7.0% cap · market cap 4.72%
Theoretical Best
Office A
$3.02M
$2.64M – $3.53M
NOI $211,532 @ 7.0% cap · market cap 9.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
900
Businesses Nearby
Explore this area
Business Placement
Demographics for 85204, AZ
63,808
Population
24,536
Households
2.6
Avg Household Size
33
Median Age
20%
College-Educated
84%
High-School Grad
9.9 sq mi
ZIP Area
6,445
Density / Sq Mi
$69,474
Median Household Income
$40,347
Median Earnings
$1,426
Median Rent
$296,000
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?
Mixed-use property - Income-producing property with potential for increased cap rate.
Where is this mixed-use property located?
The property is located at 1818 E Baseline Rd Mesa, AZ.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: High CAP Rate: Current 6.39% with potential to reach 7.5%.; Below Market Value: Opportunity to acquire property at a discounted price.; Seller Financing: Seller will carry $1 million.
