Absolute NNN Medical
New
For Sale
$553,000
2701 N 16th St. #111, Phoenix, AZ 85006
Single-tenant medical property with an absolute NNN lease, annual rent increases, and lease term extending through January 2035.
Property Size1,420 SF
Days on Market3
Property Features for 2701 N 16th St. #111
General Information
Standard status
Active
Size
1,420 SF
Class
B
Property subtype
Office
Building Details
Building Size
1,420 SF
Tenancy
Single
Listed By:
Justin Horwitz, SIOR
(480) 220-2674
Source:
Svndesertcommercial
Added: Sep 11
Last Checked: Sep 13 at 8:02AM
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 Justin Horwitz, SIOR
Investment Insights
Based on property information with market context.
This single-tenant medical property is leased to Advanced Pain Management under an absolute NNN structure extending through January 2035. The lease provides 3% annual rent increases and assigns zero landlord responsibilities. Advanced Pain Management has operated for more than 15 years and maintains 8 locations across Greater Phoenix and Tucson.
The property is located at 2701 N. 16th St. #111 in Phoenix, Arizona. It is one of four Advanced Pain Management locations being offered separately or as part of a portfolio, with the same lease structure applying across the offering. The asset is positioned for ownership under an established medical tenancy and a defined long-term lease arrangement.
The property is located at 2701 N. 16th St. #111 in Phoenix, Arizona. It is one of four Advanced Pain Management locations being offered separately or as part of a portfolio, with the same lease structure applying across the offering. The asset is positioned for ownership under an established medical tenancy and a defined long-term lease arrangement.
Key Highlights
- Absolute NNN lease with zero landlord responsibilities
- Lease term extends through January 2035
- 3% annual rent increases
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
$24,309
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
4.40%
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%
$486,180
$486.2K
Cap Rate 7%
$347,271
$347.3K
Cap Rate 9%
$270,100
$270.1K
Market Conditions
NOI Build-Up for 1,420 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
$43.6K $30.72/SF
− Vacancy
−$11.2K −$7.90/SF
EGI
$32.4K $22.82/SF
− OpEx
−$8.1K −$5.71/SF
NOI
$24.3K $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%
$486,180
Cap Rate 7%
$347,271
Cap Rate 9%
$270,100
Alternative Uses
Best Use
Office B
$347.3K
$303.9K – $405.2K
NOI $24,309 @ 7.0% cap · market cap 4.40%
Second Best
Healthcare Medical
$289.2K
$253.1K – $337.4K
NOI $20,244 @ 7.0% cap · market cap 3.66%
Theoretical Best
Office A
$430.1K
$376.4K – $501.8K
NOI $30,109 @ 7.0% cap · market cap 5.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,769
Businesses Nearby
Explore this area
Business Placement
Demographics for 85006, AZ
23,797
Population
10,607
Households
2.2
Avg Household Size
34
Median Age
27%
College-Educated
78%
High-School Grad
4.0 sq mi
ZIP Area
5,949
Density / Sq Mi
$60,742
Median Household Income
$39,899
Median Earnings
$1,168
Median Rent
$376,600
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
NNN property - Single-tenant medical property with an absolute NNN lease, annual rent increases, and lease term extending through January 2035.
Where is this nnn property located?
The property is located at 2701 N 16th St. #111 Phoenix, AZ.
What is the asking price?
The asking price for this property is $553,000.
What are key features of this property?
This property features: Absolute NNN lease with zero landlord responsibilities; Lease term extends through January 2035; 3% annual rent increases
