Tempe Warehouse with Secured
For Sale
Contact for pricing
2605 W 1st St, Tempe, AZ 85281
2.69-acre lot near Phoenix Sky Harbor International Airport.
Property Size44,490 SF
Lot Size2.69 Acres
Price / SF$236.01
Days on Market173
Property Features for 2605 W 1st St
General Information
Standard status
Active
Size
44,490 SF
Lot size
2.69 Acres
Property subtype
Industrial
Zoning
I-2 GID
Investment Type
Owner/User
Building Details
Year Built
1975
Year Renovated
2008
Buildings
1
Listing Agency:
Ross Brown Partners, Inc
(480) 362-9507
Listed By:
Kyle Mcginley · License #AZ SA663730000
Source:
Crexi
Added: Feb 19
Changed: Aug 8
Last Checked: Aug 11 at 3:25PM
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 Ross Brown Partners, Inc
Investment Insights
Based on property information with market context.
This commercial property features a 2.69-acre lot with dock-high loading and an 18' clear height. The property includes approximately 5,000 square feet of office space. It is equipped with 1,600A 277/480V 3P heavy power and has two dock-high loading positions along with four grade-level doors, including three oversized doors. The yard is fenced and secured with a 10' wall. The warehouse area is primarily clear span, and there is outdoor covered canopy space for product storage. The property is zoned I-2 (GID) by the City of Tempe. It is located one mile from Phoenix Sky Harbor International Airport, offering excellent freeway access.
Key Highlights
- 2.69 Acre Lot with Fenced and Secured Yard
- Dock High Loading with 2 Positions and Grade Level Doors (3 Oversized)
- 1,600A 277/480V 3P Heavy Power
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
$795,234
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
7.57%
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%
$15,904,680
$15.9M
Cap Rate 7%
$11,360,486
$11.4M
Cap Rate 9%
$8,835,933
$8.8M
Market Conditions
NOI Build-Up for 44,490 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
$1.35M $30.36/SF
− Vacancy
−$290.4K −$6.53/SF
EGI
$1.06M $23.83/SF
− OpEx
−$265.1K −$5.96/SF
NOI
$795.2K $17.87/SF
Area
Tempe, AZ
Vacancy
21.50%
Lease Rate
$30.36 /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%
$15,904,680
Cap Rate 7%
$11,360,486
Cap Rate 9%
$8,835,933
Alternative Uses
Best Use
Office B
$11.36M
$9.94M – $13.25M
NOI $795,234 @ 7.0% cap · market cap 7.57%
Second Best
Warehouse
$7.02M
$6.14M – $8.19M
NOI $491,599 @ 7.0% cap · market cap 4.68%
Theoretical Best
Office A
$13.99M
$12.24M – $16.32M
NOI $979,332 @ 7.0% cap · market cap 9.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,214
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
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.
Similar Off Market Nearby
- Hohokam Commerce Center — Tempe, AZ 85281
- Superior Logistics Center — 4240 E Superior Ave, Phoenix, AZ 85040
- Poindexter Moving — 3045 S 46th St., Phoenix, AZ 85040
- United Movers and Storage LLC — 2211 w 1st st #101, tempe, az 85281
- KACO Warehouse Outfitters — 3025 S 46th St., Phoenix, AZ 85040
Frequently Asked Questions
What type of property is this?
Warehouse - 2.69-acre lot near Phoenix Sky Harbor International Airport.
Where is this warehouse located?
The property is located at 2605 W 1st St Tempe, AZ.
What is the asking price?
The asking price for this property is $10,500,000.
What are key features of this property?
This property features: 2.69 Acre Lot with Fenced and Secured Yard; Dock High Loading with 2 Positions and Grade Level Doors (3 Oversized); 1,600A 277/480V 3P Heavy Power
