Historic District Office
For Sale
Contact for pricing
238 W 2nd St, Mesa, AZ 85201
Office space near a light rail station within half a mile in downtown Mesa’s historic district.
Property Size1,308 SF
Price / SF$401.38
Days on Market886
Property Features for 238 W 2nd St
General Information
Standard status
Active
Size
1,308 SF
Property subtype
OFFICE
Additional Details
Highway Access
Yes
Listing Agency:
COBE Real Estate
(480) 610-2400
Listed By:
Dave Collins · License #SA639210000
(480) 415-0055
Source:
Moodyscre
Added: Apr 15, 2024
Changed: Sep 16
Last Checked: Sep 16 at 5:37PM
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 COBE Real Estate
Investment Insights
Based on property information with market context.
Located at 238 W 2nd St in downtown Mesa, this office space totals 1,308 square feet and is offered for sale. The property sits within the city’s Historic District of downtown Mesa.
The location provides convenient public transit access, with the Light Rail Station within 1/2 mile. It is also positioned about 2.5 miles from the Superstition Freeway, supporting connectivity for employees and customers.
The location provides convenient public transit access, with the Light Rail Station within 1/2 mile. It is also positioned about 2.5 miles from the Superstition Freeway, supporting connectivity for employees and customers.
Key Highlights
- Located in downtown Mesa’s Historic District
- Office space within 1/2 mile of a Light Rail Station
- About 2.5 miles to US 60 Superstition Freeway
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
$17,640
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
3.36%
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%
$352,800
$352.8K
Cap Rate 7%
$252,000
$252.0K
Cap Rate 9%
$196,000
$196.0K
Market Conditions
NOI Build-Up for 1,308 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
$29.0K $22.20/SF
− Vacancy
−$5.5K −$4.22/SF
EGI
$23.5K $17.98/SF
− OpEx
−$5.9K −$4.50/SF
NOI
$17.6K $13.49/SF
Area
ZIP 85201
Vacancy
19.00%
Lease Rate
$22.20 /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%
$352,800
Cap Rate 7%
$252,000
Cap Rate 9%
$196,000
Alternative Uses
Best Use
Office B
$252.0K
$220.5K – $294.0K
NOI $17,640 @ 7.0% cap · market cap 3.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$339.0K
$296.7K – $395.5K
NOI $23,732 @ 7.0% cap · market cap 4.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,980
Businesses Nearby
Explore this area
Business Placement
Demographics for 85201, AZ
51,187
Population
23,099
Households
2.2
Avg Household Size
33
Median Age
27%
College-Educated
87%
High-School Grad
9.4 sq mi
ZIP Area
5,445
Density / Sq Mi
$63,725
Median Household Income
$40,067
Median Earnings
$1,349
Median Rent
$292,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office units - Office space near a light rail station within half a mile in downtown Mesa’s historic district.
Where is this office units located?
The property is located at 238 W 2nd St Mesa, AZ.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Located in downtown Mesa’s Historic District; Office space within 1/2 mile of a Light Rail Station; About 2.5 miles to US 60 Superstition Freeway
