Flex Space with
For Sale
Contact for pricing
2935 E Illini St, Phoenix, AZ 85040
Industrial facility with overhead lifting equipment, covered structures, outdoor storage capacity, and designated office space.
Property Size13,300 SF
Lot Size1.26 Acres
Price / SF$195.49
Days on Market147
Property Features for 2935 E Illini St
General Information
Standard status
Active
Size
13,300 SF
Lot size
1.26 Acres
Property subtype
Industrial, Land
Zoning
A-2
Site & Location
Highway Access
Yes
Outdoor Storage
Yes
Additional Details
Clear Height
24 ft
Building Details
Stories
1
Listing Agency:
Rein & Grossoehme Commercial Real Estate
Listed By:
Max Schumacher, SIOR · License #SA678600000
Source:
Crexi
Added: Apr 6
Changed: Aug 29
Last Checked: Aug 29 at 4:18PM
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 Rein & Grossoehme Commercial Real Estate
Investment Insights
Based on property information with market context.
This ±13,300 SF flex facility occupies ±1.26 acres and is zoned A-2. Improvements include an approximately 5,000 SF craneway building with 24-foot clear height, a 5-ton overhead crane, and a 2-ton overhead crane. Multiple canopy structures, a concrete pad with wash station, and dedicated office space are also included. Partial paving and low site coverage support a combination of enclosed operations and exterior equipment staging.
The property is located at 2935 E Illini St in Phoenix, with access to I-10, US-60, Loop 101/202, and SR-143. Phoenix Sky Harbor Airport is only minutes away. A tenant is in place through December 31, 2026.
The property is located at 2935 E Illini St in Phoenix, with access to I-10, US-60, Loop 101/202, and SR-143. Phoenix Sky Harbor Airport is only minutes away. A tenant is in place through December 31, 2026.
Key Highlights
- ±13,300 SF industrial facility on ±1.26 acres
- ±5,000 SF craneway building with 24' clear height
- Includes 5‑ton and 2‑ton overhead cranes
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
$146,066
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
5.62%
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%
$2,921,320
$2.9M
Cap Rate 7%
$2,086,657
$2.1M
Cap Rate 9%
$1,622,956
$1.6M
Market Conditions
NOI Build-Up for 13,300 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
$255.4K $19.20/SF
− Vacancy
−$30.6K −$2.30/SF
EGI
$224.7K $16.90/SF
− OpEx
−$78.7K −$5.91/SF
NOI
$146.1K $10.98/SF
Area
Phoenix, AZ
Vacancy
12.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$2,921,320
Cap Rate 7%
$2,086,657
Cap Rate 9%
$1,622,956
Alternative Uses
Best Use
Flex RnD
$2.09M
$1.83M – $2.43M
NOI $146,066 @ 7.0% cap · market cap 5.62%
Second Best
Warehouse
$1.45M
$1.27M – $1.69M
NOI $101,589 @ 7.0% cap · market cap 3.91%
Theoretical Best
Office A
$4.03M
$3.53M – $4.70M
NOI $282,008 @ 7.0% cap · market cap 10.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
24 ft
Clear height
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
489
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85040, AZ
33,993
Population
11,962
Households
2.8
Avg Household Size
30
Median Age
15%
College-Educated
69%
High-School Grad
10.1 sq mi
ZIP Area
3,366
Density / Sq Mi
$57,890
Median Household Income
$36,355
Median Earnings
$1,193
Median Rent
$294,800
Median Home Value
Market
Vacancy Rate% for Industrial in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial facility with overhead lifting equipment, covered structures, outdoor storage capacity, and designated office space.
Where is this flex space located?
The property is located at 2935 E Illini St Phoenix, AZ.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: ±13,300 SF industrial facility on ±1.26 acres; ±5,000 SF craneway building with 24' clear height; Includes 5‑ton and 2‑ton overhead cranes
