Renovated Warehouse with Secured
New
For Sale
$2,300,000
1840 W Sherman St, Phoenix, AZ 85007
C-3-zoned warehouse with upgraded building systems, office space, loading access, and fenced yard areas.
Property Size12,920 SF
Days on Market7
Property Features for 1840 W Sherman St
General Information
Standard status
Active
Size
12,920 SF
Total Parking Spaces
10
Property subtype
Commercial
Zoning
C-3
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Utilities to Site
Yes
Warehouse & Industrial
Clear Span
Yes
Office Build-Out
520 SF
Dock-High Doors
8
Power
400 amps
Voltage
240 V
Three-Phase Power
No
Building Details
Building Size
12,920 SF
Listing Agency:
Matthews Real Estate Investment Services | Phoenix
Listed By:
Oscar Lopez · License #SA691653000 (AZ)
(602) 975-0810
Source:
Matthews
Added: Sep 18
Changed: Sep 21
Last Checked: Sep 24 at 6:36AM
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 Matthews Real Estate Investment Services | Phoenix
Investment Insights
Based on property information with market context.
This 12,920-square-foot warehouse has been comprehensively renovated with a new exterior envelope, roof, insulation, electrical, plumbing, lighting, and climate-control equipment. The clear-span interior includes a 520 SF conditioned office and reception area, two attached bathrooms, six evaporative coolers, eight ridge vents, and new LED fixtures with occupancy sensors. Loading access includes four 12’x12’ overhead doors and four 12’x10’ overhead doors; two are equipped with ramps. The property also has eight exterior walk doors and three rolling vehicle gates.
Exterior improvements include sealed and striped asphalt serving 10 parking spaces, storage and access yards, new asphalt approaches, and an eastern yard surfaced with millings. A 6’ CMU wall with an iron fencing cap secures the site, while a gated rear alley limits unauthorized access. The property is zoned C-3 and includes 400amp 240v/120v single-phase electrical service, a private sewer connection, ADA improvements, and permitted work completed by licensed contractors in coordination with the City of Phoenix. It is located at 1840 W Sherman St in Phoenix, less than ±1.5 miles from I-17, I-10, and US-60.
Exterior improvements include sealed and striped asphalt serving 10 parking spaces, storage and access yards, new asphalt approaches, and an eastern yard surfaced with millings. A 6’ CMU wall with an iron fencing cap secures the site, while a gated rear alley limits unauthorized access. The property is zoned C-3 and includes 400amp 240v/120v single-phase electrical service, a private sewer connection, ADA improvements, and permitted work completed by licensed contractors in coordination with the City of Phoenix. It is located at 1840 W Sherman St in Phoenix, less than ±1.5 miles from I-17, I-10, and US-60.
Key Highlights
- 12,920 SF clear‑span warehouse on a C‑3‑zoned property
- Main secured yard measures ±17,835 SF | ±0.41 AC
- Four 12’x12’ and four 12’x10’ overhead doors; two include ramps
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
$98,686
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
4.29%
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%
$1,973,720
$2.0M
Cap Rate 7%
$1,409,800
$1.4M
Cap Rate 9%
$1,096,511
$1.1M
Market Conditions
NOI Build-Up for 12,920 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
$131.8K $10.20/SF
− Vacancy
−$15.7K −$1.21/SF
EGI
$116.1K $8.99/SF
− OpEx
−$17.4K −$1.35/SF
NOI
$98.7K $7.64/SF
Area
Phoenix, AZ
Vacancy
11.90%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
15.00%
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%
$1,973,720
Cap Rate 7%
$1,409,800
Cap Rate 9%
$1,096,511
Alternative Uses
Best Use
Warehouse
$1.41M
$1.23M – $1.64M
NOI $98,686 @ 7.0% cap · market cap 4.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.91M
$3.42M – $4.57M
NOI $273,951 @ 7.0% cap · market cap 11.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
8
Dock-high doors
Yes
Fenced yard
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
957
Businesses Nearby
Well-served
Demand for This Use
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Warehouse - C-3-zoned warehouse with upgraded building systems, office space, loading access, and fenced yard areas.
Where is this warehouse located?
The property is located at 1840 W Sherman St Phoenix, AZ.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: 12,920 SF clear‑span warehouse on a C‑3‑zoned property; Main secured yard measures ±17,835 SF | ±0.41 AC; Four 12’x12’ and four 12’x10’ overhead doors; two include ramps
