Renovated Phoenix Commercial Property For
For Sale
$699,999
2204-2206 W Indian School, Phoenix, AZ 85015
High-visibility commercial property with recent renovations and strong traffic counts.
Property Size1,811 SF
Price / SF$386.53
Days on Market207
Property Features for 2204-2206 W Indian School
General Information
Standard status
Active
Size
1,811 SF
Property subtype
Office
Building Details
Year Built
1956
Listing Agency:
Commercial Properties Inc Tempe
(602) 373-8800
Listed By:
Jeff Hays · License #SA026102000
(602) 373-8800
Source:
Corfac
Added: Jan 26
Changed: Jul 10
Last Checked: Aug 21 at 4:11AM
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 Commercial Properties Inc Tempe
Investment Insights
Based on property information with market context.
This commercial property, renovated in 2025, presents an excellent opportunity for owner-users or investors. The renovations include new flooring, paint (interior and exterior), a new roof on the east building, and new A/C with ducting and insulation in both buildings. Automated gates are installed on the west entrance, with an east automated gate to be installed. New wrought iron perimeter fencing has been added, along with approximately 12,650 square feet of additional parking or storage. The property offers high visibility frontage on Indian School Road with strong traffic counts and excellent signage opportunities. Ample on-site parking is available, and the location provides easy access to I-17, I-10, and SR-51. The property is situated along one of Phoenix’s busiest commercial corridors, surrounded by a dense mix of retail, office, and residential communities, ensuring strong traffic counts and a built-in customer base. The surrounding area features national and regional retailers, restaurants, and service providers. The property is in close proximity to Grand Canyon University, Banner Health, and Downtown Phoenix. The property size is 1811 square feet. Sale Leaseback Opportunity at 7% Cap Rate.
Key Highlights
- Renovated in 2025 with new flooring, paint, interior and exterior, new roof on east building, new A/C and ducting/insulation on both buildings.
- Sale Leaseback Opportunity at 7% Cap Rate.
- Approximately 12,650 SF additional parking or storage.
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
$31,002
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
4.43%
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%
$620,040
$620.0K
Cap Rate 7%
$442,886
$442.9K
Cap Rate 9%
$344,467
$344.5K
Market Conditions
NOI Build-Up for 1,811 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
$55.6K $30.72/SF
− Vacancy
−$14.3K −$7.90/SF
EGI
$41.3K $22.82/SF
− OpEx
−$10.3K −$5.71/SF
NOI
$31.0K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /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%
$620,040
Cap Rate 7%
$442,886
Cap Rate 9%
$344,467
Alternative Uses
Best Use
Office B
$442.9K
$387.5K – $516.7K
NOI $31,002 @ 7.0% cap · market cap 4.43%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$548.6K
$480.0K – $640.0K
NOI $38,400 @ 7.0% cap · market cap 5.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
802
Businesses Nearby
Explore this area
Business Placement
Demographics for 85015, AZ
41,436
Population
17,889
Households
2.3
Avg Household Size
33
Median Age
25%
College-Educated
78%
High-School Grad
4.9 sq mi
ZIP Area
8,456
Density / Sq Mi
$52,585
Median Household Income
$36,456
Median Earnings
$1,227
Median Rent
$312,600
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - High-visibility commercial property with recent renovations and strong traffic counts.
Where is this office building located?
The property is located at 2204-2206 W Indian School Phoenix, AZ.
What is the asking price?
The asking price for this property is $699,999.
What are key features of this property?
This property features: Renovated in 2025 with new flooring, paint, interior and exterior, new roof on east building, new A/C and ducting/insulation on both buildings.; Sale Leaseback Opportunity at 7% Cap Rate.; Approximately 12,650 SF additional parking or storage.
