Tucson Industrial Warehouse For
For Sale
$625,000
3208 E District St, Tucson, AZ 85714
6,000 SF industrial warehouse in Tucson's Palo Verde submarket.
Property Size6,000 SF
Lot Size0.49 Acres
Price / SF$104.17
Days on Market169
Property Features for 3208 E District St
General Information
Standard status
Active
Size
6,000 SF
Total Parking Spaces
10
Lot size
0.49 Acres
Property subtype
Industrial
Zoning
CI-2 County
Building Details
Building Size
6,000 SF
Year Built
2002
Listing Agency:
Coldwell Banker Commercial Realty
(602) 432-2793
Listed By:
Rick Kehm
(602) 432-2793
Source:
Cbcworldwide
Added: Mar 5
Changed: Aug 8
Last Checked: Apr 9 at 9:00PM
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 Coldwell Banker Commercial Realty
Investment Insights
Based on property information with market context.
This industrial warehouse is located in Tucson, Arizona, within the Palo Verde submarket. The property includes a 3,600-square-foot two-story building and a 2,400-square-foot one-story building, totaling 6,000 square feet. The building is situated on a 21,344-square-foot lot. Utilities available include natural gas and city water/sewer, along with a 600 amp/240v 3-phase electrical service. The warehouse features five drive-in doors, each measuring 10 feet wide by 12 feet high, and a 12-foot clear height. The building's construction consists of steel beams and metal exteriors.
Key Highlights
- 6,000 SF total space (3,600 SF 2‑story & 2,400 SF 1‑story)
- Features a substantial 600 amp/240v 3 phase electrical service
- Benefit from 5 drive‑in doors (10’ w x 12’ h)
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
$52,796
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
8.45%
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%
$1,055,920
$1.1M
Cap Rate 7%
$754,229
$754.2K
Cap Rate 9%
$586,622
$586.6K
Market Conditions
NOI Build-Up for 6,000 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
$65.5K $10.92/SF
− Vacancy
−$3.4K −$0.57/SF
EGI
$62.1K $10.35/SF
− OpEx
−$9.3K −$1.55/SF
NOI
$52.8K $8.80/SF
Area
Tucson, AZ
Vacancy
5.20%
Lease Rate
$10.92 /SF/Yr
Expense Ratio
15.00%
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%
$1,055,920
Cap Rate 7%
$754,229
Cap Rate 9%
$586,622
Alternative Uses
Best Use
Warehouse
$754.2K
$660.0K – $879.9K
NOI $52,796 @ 7.0% cap · market cap 8.45%
Second Best
Industrial
$621.1K
$543.5K – $724.7K
NOI $43,479 @ 7.0% cap · market cap 6.96%
Theoretical Best
Office A
$1.56M
$1.36M – $1.82M
NOI $109,106 @ 7.0% cap · market cap 17.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,567
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85714, AZ
14,232
Population
5,589
Households
2.5
Avg Household Size
38
Median Age
10%
College-Educated
69%
High-School Grad
5.6 sq mi
ZIP Area
2,541
Density / Sq Mi
$47,093
Median Household Income
$30,204
Median Earnings
$879
Median Rent
$177,100
Median Home Value
Market
Vacancy Rate% for Industrial in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - 6,000 SF industrial warehouse in Tucson's Palo Verde submarket.
Where is this warehouse located?
The property is located at 3208 E District St Tucson, AZ.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: 6,000 SF total space (3,600 SF 2‑story & 2,400 SF 1‑story); Features a substantial 600 amp/240v 3 phase electrical service; Benefit from **5 drive‑in doors (10’ w x 12’ h)**
