Tempe Retail Center Near
For Sale
Contact for pricing
Pending
3134 South Mill Avenue, Tempe, AZ 85282
Neighborhood retail center shadow anchored by Fry’s Food & Drug.
Property Size31,621 SF
Lot Size3.10 Acres
Days on Market111
Property Features for 3134 South Mill Avenue
General Information
Standard status
Pending
Size
31,621 SF
Total Parking Spaces
240
Lot size
3.10 Acres
Property subtype
Retail
Zoning
CSS
Occupancy
94%
Net Operating Income
$690,878
Building Details
Year Built
1976
Year Renovated
1992
Listing Agency:
CBRE - Phoenix
Listed By:
Zach Aulick · License #Arizona - SA566983000
Source:
Crexi
Added: May 15
Changed: Aug 23
Last Checked: Aug 31 at 2:58AM
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 CBRE - Phoenix
Investment Insights
Based on property information with market context.
The property is a neighborhood retail center shadow anchored by Fry’s Food & Drug (Kroger). Situated on 3.1 acres at the northwest corner of Mill Avenue and Southern Avenue in Tempe, Arizona, the center comprises approximately 31,621 square feet of rentable space. It is currently 94.8% leased to a variety of daily-needs tenants. The property benefits from visibility and access along Mill Avenue. The location is shadow-anchored by a corporately owned Fry’s Food & Drug (Kroger), a dominant grocery operator in Arizona with over 120 locations statewide. The adjacency to a high-volume Fry’s location positions the property to capture grocery-driven traffic. The property occupies a centralized in-fill location within the East Valley retail core. U.S. Route 60 is approximately one mile north, Interstate 10 to the west, and Loop 101 approximately three miles east, allowing regional access. The property is also located 1.5 miles south of Arizona State University’s Main campus, with approximately 79,800 enrolled students at the Tempe Campus. Within a three-mile radius, the area supports a 2025 population of approximately 158,149 residents and a daytime population exceeding 210,000. Average household incomes are $93,768 within three miles. The trade area supports over 7,500 businesses and over 111,000 employees within three miles.
Key Highlights
- Shadow‑anchored by high‑volume Fry’s Food & Drug (Kroger), driving consistent customer traffic.
- Located in a centralized in‑fill location within the East Valley retail core, with excellent visibility and access along Mill Avenue.
- High occupancy rate of 94.8% leased to a diverse mix of daily‑needs tenants.
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
$368,543
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
3.35%
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%
$7,370,860
$7.4M
Cap Rate 7%
$5,264,900
$5.3M
Cap Rate 9%
$4,094,922
$4.1M
Market Conditions
NOI Build-Up for 31,621 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
$569.2K $18.00/SF
− Vacancy
−$42.7K −$1.35/SF
EGI
$526.5K $16.65/SF
− OpEx
−$157.9K −$5.00/SF
NOI
$368.5K $11.66/SF
Area
Tempe, AZ
Vacancy
7.50%
Lease Rate
$18.00 /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%
$7,370,860
Cap Rate 7%
$5,264,900
Cap Rate 9%
$4,094,922
Alternative Uses
Best Use
Retail
$5.26M
$4.61M – $6.14M
NOI $368,543 @ 7.0% cap · market cap 3.35%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.94M
$8.70M – $11.60M
NOI $696,055 @ 7.0% cap · market cap 6.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
987
Businesses Nearby
162k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 46%
Groceries 31%
Shops & Services 21%
Beauty & Spa 2%
Fry's
Groceries
49,475 visits/mo
0.1 miles
Dutch Bros. Coffee
Dining
37,896 visits/mo
0.1 miles
Venezia's Pizzeria
Dining
14,995 visits/mo
0.3 miles
Circle K
Shops & Services
14,107 visits/mo
0.2 miles
Fry's Fuel Center
Shops & Services
13,975 visits/mo
0.2 miles
Demographics for 85282, AZ
52,351
Population
25,667
Households
2
Avg Household Size
33
Median Age
44%
College-Educated
94%
High-School Grad
11.1 sq mi
ZIP Area
4,716
Density / Sq Mi
$79,084
Median Household Income
$43,863
Median Earnings
$1,627
Median Rent
$370,000
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - Neighborhood retail center shadow anchored by Fry’s Food & Drug.
Where is this shopping center located?
The property is located at 3134 South Mill Avenue Tempe, AZ.
What is the asking price?
The asking price for this property is $11,000,000.
What are key features of this property?
This property features: Shadow‑anchored by high‑volume Fry’s Food & Drug (Kroger), driving consistent customer traffic.; Located in a centralized in‑fill location within the East Valley retail core, with excellent visibility and access along Mill Avenue.; High occupancy rate of 94.8% leased to a diverse mix of daily‑needs tenants.
