Machine Shop Manufacturing
For Sale
$799,000
2981 E Adams, Show Low, AZ 85901
Manufacturing facility offered with Bill's Machine Shop and a regional customer base serving municipalities and businesses.
Property Size4,840 SF
Price / SF$165.08
Days on Market442
Property Features for 2981 E Adams
General Information
Standard status
Active
Size
4,840 SF
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$1,879
Listing Agency:
Advantage Realty Professionals
(928) 242-1048
Listed By:
Liz M. Engelhart
(928) 242-1048
Source:
Exprealty
Added: Jun 9, 2025
Changed: Aug 23
Last Checked: Aug 23 at 10:32AM
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 Advantage Realty Professionals
Investment Insights
Based on property information with market context.
This manufacturing property is being offered together with the business “Bill's Machine Shop,” including an established customer base requesting machine work for small and large projects. The combined offering is presented as serving customers in state, city, and county municipalities, school districts, the Fort Apache Tribe, power plants, auto dealerships, construction companies, auto repair shops, and the timber industry.
The property is located at 2981 E Adams in Show Low, Arizona, in a growing area of Northern Arizona.
With the business and customer base included in the sale, this is a turnkey-style manufacturing opportunity centered on machine shop work, supported by ongoing demand from a broad mix of public and private customers.
The property is located at 2981 E Adams in Show Low, Arizona, in a growing area of Northern Arizona.
With the business and customer base included in the sale, this is a turnkey-style manufacturing opportunity centered on machine shop work, supported by ongoing demand from a broad mix of public and private customers.
Key Highlights
- Offered together with Bill's Machine Shop machine work business
- 4,840 SF manufacturing property
- Customer base includes state, city, and county municipalities
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
$44,104
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
5.52%
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%
$882,080
$882.1K
Cap Rate 7%
$630,057
$630.1K
Cap Rate 9%
$490,044
$490.0K
Market Conditions
NOI Build-Up for 4,840 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
$65.6K $13.56/SF
− Vacancy
−$2.6K −$0.54/SF
EGI
$63.0K $13.02/SF
− OpEx
−$18.9K −$3.91/SF
NOI
$44.1K $9.11/SF
Area
Navajo County, AZ
Vacancy
4.00%
Lease Rate
$13.56 /SF/Yr
Expense Ratio
30.00%
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%
$882,080
Cap Rate 7%
$630,057
Cap Rate 9%
$490,044
Alternative Uses
Best Use
Industrial
$630.1K
$551.3K – $735.1K
NOI $44,104 @ 7.0% cap · market cap 5.52%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.32M
$1.15M – $1.53M
NOI $92,068 @ 7.0% cap · market cap 11.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
133
Businesses Nearby
Explore this area
Business Placement
Demographics for 85901, AZ
18,701
Population
12,437
Households
1.5
Avg Household Size
49
Median Age
26%
College-Educated
94%
High-School Grad
263.1 sq mi
ZIP Area
71
Density / Sq Mi
$60,313
Median Household Income
$37,466
Median Earnings
$1,009
Median Rent
$256,300
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Manufacturing facility offered with Bill's Machine Shop and a regional customer base serving municipalities and businesses.
Where is this manufacturing property located?
The property is located at 2981 E Adams Show Low, AZ.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: Offered together with Bill's Machine Shop machine work business; 4,840 SF manufacturing property; Customer base includes state, city, and county municipalities
