Phoenix Office Building For
For Sale
$2,450,000
2544 E University Dr, Phoenix, AZ 85034
Office building with training rooms, flexible layout, and ample parking.
Property Size11,019 SF
Price / SF$222.34
Days on Market207
Property Features for 2544 E University Dr
General Information
Standard status
Active
Size
11,019 SF
Property subtype
Office
Building Details
Building Size
11,019 SF
Year Built
1978
Listing Agency:
Commercial Properties Inc
(480) 628-8661
Listed By:
Darin Edwards · License #SA540651000
(480) 628-8661
Source:
Corfac
Added: Jan 26
Changed: Aug 17
Last Checked: Aug 21 at 5:38AM
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
Investment Insights
Based on property information with market context.
This office building, located at 24th Street and University Drive, is available for sale. The property features multiple training rooms and bullpens suitable for collaborative or instructional purposes. It includes two break rooms, several private offices, and a large reception/showroom area. The flexible floor plan allows for easy reconfiguration to accommodate one or more tenants. Ample surface and covered parking is available, providing convenient access for employees and visitors. The property is in close proximity to major freeways, the airport, and Downtown Phoenix and features freeway monument signs. The property has a size of 11019 square feet.
Key Highlights
- Flexible floor plan allowing easy reconfiguration for one or more tenants.
- Ample surface and covered parking and convenient access for employees and visitors.
- Close proximity to major freeways, the airport, and Downtown Phoenix.
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
$188,631
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
7.70%
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%
$3,772,620
$3.8M
Cap Rate 7%
$2,694,729
$2.7M
Cap Rate 9%
$2,095,900
$2.1M
Market Conditions
NOI Build-Up for 11,019 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
$338.5K $30.72/SF
− Vacancy
−$87.0K −$7.90/SF
EGI
$251.5K $22.82/SF
− OpEx
−$62.9K −$5.71/SF
NOI
$188.6K $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%
$3,772,620
Cap Rate 7%
$2,694,729
Cap Rate 9%
$2,095,900
Alternative Uses
Best Use
Office B
$2.69M
$2.36M – $3.14M
NOI $188,631 @ 7.0% cap · market cap 7.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.34M
$2.92M – $3.89M
NOI $233,642 @ 7.0% cap · market cap 9.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
509
Businesses Nearby
Explore this area
Business Placement
Demographics for 85034, AZ
5,033
Population
2,901
Households
1.7
Avg Household Size
32
Median Age
32%
College-Educated
81%
High-School Grad
11.6 sq mi
ZIP Area
434
Density / Sq Mi
$53,545
Median Household Income
$43,236
Median Earnings
$1,205
Median Rent
$397,400
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building with training rooms, flexible layout, and ample parking.
Where is this office building located?
The property is located at 2544 E University Dr Phoenix, AZ.
What is the asking price?
The asking price for this property is $2,450,000.
What are key features of this property?
This property features: Flexible floor plan allowing easy reconfiguration for one or more tenants.; Ample surface and covered parking and convenient access for employees and visitors.; Close proximity to major freeways, the airport, and Downtown Phoenix.
