Tempe Medical Office
For Sale
Contact for pricing
2145 E Baseline Rd, Tempe, AZ 85283
100% leased medical office investment property in Tempe, Arizona.
Property Size46,928 SF
Lot Size4.61 Acres
Price / SF$371.95
Days on Market155
Property Features for 2145 E Baseline Rd
General Information
Standard status
Active
Size
46,928 SF
Class
B
Total Parking Spaces
344
Lot size
4.61 Acres
Property subtype
Office
Zoning
PCC-1 (City of Tempe)
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$1,090,940
Building Details
Year Built
2019
Tenancy
Single
Listing Agency:
The Menlo Group Commercial Real Estate LLC
(480) 659-1777
Listed By:
Stuart Milne · License #AZ SA634760000
Source:
Crexi
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 10 at 11:25AM
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 The Menlo Group Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
The property at 2145 E Baseline Road, Tempe, Arizona, is a 46,928-square-foot, 100% leased, single-tenant medical office investment. It is situated on a 4.61-acre site and is currently zoned PCC-1. The property serves as administrative offices and an urgent care clinic for NextCare Arizona LLC, a major provider with approximately 137 facilities across 10 states. The tenant has invested approximately $4 million in improvements to the facility, including a $2 million allowance. The building includes an approximately 3,000 SF urgent care clinic. The lease term extends through August 31, 2033, representing a WALT of 7.58 years. The lease type is Double Net (NN), with the tenant responsible for all operating expenses, including utilities, HVAC, and mechanical systems, while the landlord is responsible for the roof and ordinary structural maintenance. The roof is newly installed and remains under warranty. The current rental rate is $21.50/SF ($1,008,952 annually) through 8/31/2026, with a step-up to $23.50/SF ($1,102,808 annually) starting 9/01/2026. Renewal options include two five-year options at market rent with 2% annual increases. The property is strategically located near major regional landmarks including Arizona State University, Phoenix Sky Harbor International Airport, and Banner Desert Medical Center. It also includes annual cell tower income of $11,595.72 from T-Mobile West LLC.
Key Highlights
- 100% leased to NextCare Arizona LLC, a major provider ensuring stable income.
- Long‑term lease through August 31, 2033 (WALT of 7.58 years) provides extended security.
- Double Net (NN) lease minimizes landlord responsibilities.
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
$838,812
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
4.81%
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%
$16,776,240
$16.8M
Cap Rate 7%
$11,983,029
$12.0M
Cap Rate 9%
$9,320,133
$9.3M
Market Conditions
NOI Build-Up for 46,928 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
$1.42M $30.36/SF
− Vacancy
−$306.3K −$6.53/SF
EGI
$1.12M $23.83/SF
− OpEx
−$279.6K −$5.96/SF
NOI
$838.8K $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%
$16,776,240
Cap Rate 7%
$11,983,029
Cap Rate 9%
$9,320,133
Alternative Uses
Best Use
Office B
$11.98M
$10.49M – $13.98M
NOI $838,812 @ 7.0% cap · market cap 4.81%
Second Best
Healthcare Medical
$10.10M
$8.84M – $11.78M
NOI $707,017 @ 7.0% cap · market cap 4.05%
Theoretical Best
Office A
$14.76M
$12.91M – $17.22M
NOI $1,032,999 @ 7.0% cap · market cap 5.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
616
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85283, AZ
45,736
Population
20,620
Households
2.2
Avg Household Size
35
Median Age
44%
College-Educated
93%
High-School Grad
8.8 sq mi
ZIP Area
5,197
Density / Sq Mi
$81,073
Median Household Income
$47,213
Median Earnings
$1,669
Median Rent
$409,800
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?
Medical Office Space - 100% leased medical office investment property in Tempe, Arizona.
Where is this medical office space located?
The property is located at 2145 E Baseline Rd Tempe, AZ.
What is the asking price?
The asking price for this property is $17,455,034.
What are key features of this property?
This property features: 100% leased to NextCare Arizona LLC, a major provider ensuring stable income.; Long‑term lease through August 31, 2033 (WALT of 7.58 years) provides extended security.; Double Net (NN) lease minimizes landlord responsibilities.
