Industrial Flex Property with Secured
For Sale
Contact for pricing
2020 West 4th Street, Tempe, AZ 85281
Heavy-power industrial facility with office buildout, loading access, and a paved, fenced yard.
Property Size39,480 SF
Price / SF$300
Days on Market10
Property Features for 2020 West 4th Street
General Information
Standard status
Active
Size
39,480 SF
Class
B
Property subtype
Industrial
Zoning
I-2, Tempe
Lease Type
NNN
Building Details
Year Built
1997
Tenancy
Single
Listing Agency:
Ross Brown Partners, Inc
(480) 362-9507
Listed By:
Kyle Mcginley · License #AZ SA663730000
Source:
Crexi
Added: Aug 3
Changed: Aug 11
Last Checked: Aug 11 at 5:08AM
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 Ross Brown Partners, Inc
Investment Insights
Based on property information with market context.
Built in 1997, this Tempe flex facility includes approximately 39,480 square feet of industrial space and roughly 8,000 square feet of office area. The property offers 20-foot clear height, two grade-level loading doors, and HVAC serving approximately 70% of the building. Heavy electrical service totals 2,000A at 120/208. The industrial building is identified as I-2 zoning.
A separate 1.46-acre secured yard is fully paved, lit, and fenced, with GID zoning identified for the yard area. The property is currently occupied by the owner/user and requires a six-month leaseback, providing a defined transition period for a future occupant.
A separate 1.46-acre secured yard is fully paved, lit, and fenced, with GID zoning identified for the yard area. The property is currently occupied by the owner/user and requires a six-month leaseback, providing a defined transition period for a future occupant.
Key Highlights
- Approximately 39,480 SF industrial facility with approximately 8,000 SF of office space
- 1.46 AC secured yard that is fully paved, lit, and fenced
- Two grade‑level loading doors and 20' clear height
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
$705,683
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
5.96%
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%
$14,113,660
$14.1M
Cap Rate 7%
$10,081,186
$10.1M
Cap Rate 9%
$7,840,922
$7.8M
Market Conditions
NOI Build-Up for 39,480 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
$1.20M $30.36/SF
− Vacancy
−$257.7K −$6.53/SF
EGI
$940.9K $23.83/SF
− OpEx
−$235.2K −$5.96/SF
NOI
$705.7K $17.87/SF
Area
Tempe, AZ
Vacancy
21.50%
Lease Rate
$30.36 /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%
$14,113,660
Cap Rate 7%
$10,081,186
Cap Rate 9%
$7,840,922
Alternative Uses
Best Use
Office B
$10.08M
$8.82M – $11.76M
NOI $705,683 @ 7.0% cap · market cap 5.96%
Second Best
Warehouse
$6.23M
$5.45M – $7.27M
NOI $436,241 @ 7.0% cap · market cap 3.68%
Theoretical Best
Office A
$12.41M
$10.86M – $14.48M
NOI $869,050 @ 7.0% cap · market cap 7.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,359
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
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?
Flex space - Heavy-power industrial facility with office buildout, loading access, and a paved, fenced yard.
Where is this flex space located?
The property is located at 2020 West 4th Street Tempe, AZ.
What is the asking price?
The asking price for this property is $11,844,000.
What are key features of this property?
This property features: Approximately 39,480 SF industrial facility with approximately 8,000 SF of office space; 1.46 AC secured yard that is fully paved, lit, and fenced; Two grade‑level loading doors and 20' clear height
