Mixed-Use Commercial
For Sale
$749,900
Pending
22771 N 187th Avenue, Surprise, AZ 85387
Flexible zoning supports a blend of commercial, light industrial, and residential uses.
Property Size1,848 SF
Days on Market56
Property Features for 22771 N 187th Avenue
General Information
Standard status
Pending
Size
1,848 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$1,136
Building Details
Year Built
1985
Listing Agency:
Avenue Home Realty
(602) 321-1010
Listed By:
Erika Ceja · License #BR562042000
(602) 321-1010
Source:
Exitrealty
Added: Jun 30
Changed: Aug 23
Last Checked: Aug 23 at 8:50AM
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 Avenue Home Realty
Investment Insights
Based on property information with market context.
This mixed-use property provides 7,200 square feet of commercial space in a building constructed in 1985. The property carries mixed-use, light industrial, and residential zoning, creating a combination of land-use classifications within the asset.
Located at 22771 North 187th Avenue in Surprise, Arizona, the property is positioned for consideration by users seeking a commercial building with multiple zoning components. The existing structure and established construction date provide a defined physical asset for evaluation.
Located at 22771 North 187th Avenue in Surprise, Arizona, the property is positioned for consideration by users seeking a commercial building with multiple zoning components. The existing structure and established construction date provide a defined physical asset for evaluation.
Key Highlights
- 7,200‑square‑foot mixed‑use property
- Mixed‑use, light industrial, and residential zoning
- Building constructed in 1985
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
$22,703
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
3.03%
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%
$454,060
$454.1K
Cap Rate 7%
$324,329
$324.3K
Cap Rate 9%
$252,256
$252.3K
Market Conditions
NOI Build-Up for 1,848 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
$39.9K $21.60/SF
− Vacancy
−$3.6K −$1.94/SF
EGI
$36.3K $19.66/SF
− OpEx
−$13.6K −$7.37/SF
NOI
$22.7K $12.29/SF
Area
Surprise, AZ
Vacancy
9.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$454,060
Cap Rate 7%
$324,329
Cap Rate 9%
$252,256
Alternative Uses
Best Use
Mixed Use
$324.3K
$283.8K – $378.4K
NOI $22,703 @ 7.0% cap · market cap 3.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$569.9K
$498.7K – $664.9K
NOI $39,893 @ 7.0% cap · market cap 5.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
20
Businesses Nearby
Explore this area
Business Placement
Demographics for 85387, AZ
16,331
Population
8,707
Households
1.9
Avg Household Size
52
Median Age
35%
College-Educated
94%
High-School Grad
60.0 sq mi
ZIP Area
272
Density / Sq Mi
$95,472
Median Household Income
$53,282
Median Earnings
$2,405
Median Rent
$453,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Flexible zoning supports a blend of commercial, light industrial, and residential uses.
Where is this mixed-use property located?
The property is located at 22771 N 187th Avenue Surprise, AZ.
What is the asking price?
The asking price for this property is $749,900.
What are key features of this property?
This property features: 7,200‑square‑foot mixed‑use property; Mixed‑use, light industrial, and residential zoning; Building constructed in 1985
