Mixed-Use Building with
For Sale
$475,000
2 Naco Road, Bisbee, AZ 85603
Commercial space with display windows, a tenant-occupied apartment, and additional upstairs area for residential conversion.
Property Size4,450 SF
Price / SF$106.74
Days on Market106
Property Features for 2 Naco Road
General Information
Standard status
Active
Size
4,450 SF
Property subtype
Commercial
Zoning
Commercial
Taxes and HOA fees
Annual Taxes
$4,866
Building Details
Building Size
4,450 SF
Year Built
1920
Buildings
1
Listing Agency:
Long Realty Company
(520) 220-7656
Listed By:
Michelle Hagele · License #SA666351000
(520) 220-7656
Source:
Aznewhorizonrealty
Added: Apr 25
Changed: Aug 7
Last Checked: Aug 8 at 12:13PM
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 Long Realty Company
Investment Insights
Based on property information with market context.
Built in 1920, this mixed-use property combines a ground-floor commercial area with residential space above. The commercial level was formerly used as an art gallery and includes expansive display windows suited to street-facing merchandising or presentation. Upstairs, a tenant-occupied 2 bed 1 bath apartment provides an established residential component, while a separate upper-level area offers space for development into a second apartment.
The property is located at 2 Naco Road in Bisbee, directly across from a public parking area. Restaurants, hotels, bars, and museums are described as being within a short walk. The 4,450-square-foot building is zoned Commercial and supports a combination of commercial occupancy and residential use within the same structure.
The property is located at 2 Naco Road in Bisbee, directly across from a public parking area. Restaurants, hotels, bars, and museums are described as being within a short walk. The 4,450-square-foot building is zoned Commercial and supports a combination of commercial occupancy and residential use within the same structure.
Key Highlights
- 4,450‑square‑foot mixed‑use building at 2 Naco Road, Bisbee, AZ 85603
- Ground‑floor commercial area with expansive display windows
- Tenant‑occupied 2 bed 1 bath apartment upstairs
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
$34,016
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
7.16%
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%
$680,320
$680.3K
Cap Rate 7%
$485,943
$485.9K
Cap Rate 9%
$377,956
$378.0K
Market Conditions
NOI Build-Up for 4,450 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
$56.1K $12.60/SF
− Vacancy
−$10.7K −$2.41/SF
EGI
$45.4K $10.19/SF
− OpEx
−$11.3K −$2.55/SF
NOI
$34.0K $7.64/SF
Area
Cochise County, AZ
Vacancy
19.11%
Lease Rate
$12.60 /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%
$680,320
Cap Rate 7%
$485,943
Cap Rate 9%
$377,956
Alternative Uses
Best Use
Office B
$485.9K
$425.2K – $566.9K
NOI $34,016 @ 7.0% cap · market cap 7.16%
Second Best
Retail
$410.4K
$359.1K – $478.8K
NOI $28,725 @ 7.0% cap · market cap 6.05%
Theoretical Best
Specialty Retail
$659.4K
$577.0K – $769.3K
NOI $46,158 @ 7.0% cap · market cap 9.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
397
Businesses Nearby
Explore this area
Business Placement
Demographics for 85603, AZ
6,342
Population
4,183
Households
1.5
Avg Household Size
55
Median Age
30%
College-Educated
90%
High-School Grad
227.6 sq mi
ZIP Area
28
Density / Sq Mi
$46,509
Median Household Income
$27,690
Median Earnings
$835
Median Rent
$204,900
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 - Commercial space with display windows, a tenant-occupied apartment, and additional upstairs area for residential conversion.
Where is this mixed-use property located?
The property is located at 2 Naco Road Bisbee, AZ.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 4,450‑square‑foot mixed‑use building at 2 Naco Road, Bisbee, AZ 85603; Ground‑floor commercial area with expansive display windows; Tenant‑occupied 2 bed 1 bath apartment upstairs
