Office Building with NNN
For Sale
$875,000
223 White Spar Road, Prescott, AZ 86303
Three-suite property combines established tenancy with available space for an owner-user or additional occupants.
Property Size3,601 SF
Price / SF$242.99
Days on Market366
Property Features for 223 White Spar Road
General Information
Standard status
Active
Size
3,601 SF
Total Parking Spaces
11
Property subtype
Office
Additional Details
Road Access
Yes
Office Units
3
Taxes and HOA fees
Annual Taxes
$4,853
Amenities
Central Air, Heat Pump
3
Parking.
11 Parking Spaces. Paved Driveway, On Site, On Street.
Building Details
Year Built
1992
Buildings
1
Tenancy
Multi
Listing Agency:
(928) 899-3111
Listed By:
Invest Southwest
(928) 899-3111
Source:
Xome
Added: Aug 31, 2025
Changed: Aug 31
Last Checked: Aug 30 at 2:26PM
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 Invest Southwest
Investment Insights
Based on property information with market context.
This 3,601-square-foot office building, constructed in 1992, is configured with three suites. Suite A contains approximately 2,413 square feet and is occupied under a new 10-year NNN lease with scheduled increases. Suites B and C provide approximately 1,188 square feet together and are available for occupancy.
Recent improvements include exterior painting plus new paint and flooring in Suites B and C. The property offers central air and a heat pump, along with 11 paved on-site parking spaces, a restriped lot, and additional on-street parking. It is positioned on White Spar Road near downtown Prescott.
Recent improvements include exterior painting plus new paint and flooring in Suites B and C. The property offers central air and a heat pump, along with 11 paved on-site parking spaces, a restriped lot, and additional on-street parking. It is positioned on White Spar Road near downtown Prescott.
Key Highlights
- 3,601‑square‑foot office building with three suites
- Suite A contains approximately 2,413 SF and has a new 10‑year NNN lease with increases
- Suites B and C offer approximately 1,188 SF of available space
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
$52,374
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
5.99%
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%
$1,047,480
$1.0M
Cap Rate 7%
$748,200
$748.2K
Cap Rate 9%
$581,933
$581.9K
Market Conditions
NOI Build-Up for 3,601 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
$83.8K $23.28/SF
− Vacancy
−$14.0K −$3.89/SF
EGI
$69.8K $19.39/SF
− OpEx
−$17.5K −$4.85/SF
NOI
$52.4K $14.54/SF
Area
Yavapai County, AZ
Vacancy
16.70%
Lease Rate
$23.28 /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%
$1,047,480
Cap Rate 7%
$748,200
Cap Rate 9%
$581,933
Alternative Uses
Best Use
Office B
$748.2K
$654.7K – $872.9K
NOI $52,374 @ 7.0% cap · market cap 5.99%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.21M
$1.06M – $1.41M
NOI $84,443 @ 7.0% cap · market cap 9.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
482
Businesses Nearby
Explore this area
Business Placement
Demographics for 86303, AZ
18,201
Population
12,255
Households
1.5
Avg Household Size
61
Median Age
41%
College-Educated
96%
High-School Grad
107.2 sq mi
ZIP Area
170
Density / Sq Mi
$68,656
Median Household Income
$44,428
Median Earnings
$1,309
Median Rent
$502,400
Median Home Value
Market
Vacancy Rate% for Office in West region
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 - Three-suite property combines established tenancy with available space for an owner-user or additional occupants.
Where is this office building located?
The property is located at 223 White Spar Road Prescott, AZ.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 3,601‑square‑foot office building with three suites; Suite A contains approximately 2,413 SF and has a new 10‑year NNN lease with increases; Suites B and C offer approximately 1,188 SF of available space
