Functional Commercial Building on
For Sale
Contact for pricing
323 East McDowell Road, Phoenix, AZ 85004
Street-level commercial building suitable for various business types.
Property Size2,389 SF
Price / SF$311.85
Days on Market97
Property Features for 323 East McDowell Road
General Information
Standard status
Active
Size
2,389 SF
Total Parking Spaces
12
Property subtype
Retail, Office
Zoning
C-DT
Building Details
Year Built
1965
Buildings
1
Units
12
Listing Agency:
ORION Investment Real Estate
(602) 241-0006
Listed By:
Lucinda Bliss · License #AZ BR007079000
Source:
Crexi
Added: May 26
Changed: Aug 22
Last Checked: Aug 29 at 11:03AM
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 ORION Investment Real Estate
Investment Insights
Based on property information with market context.
The building at 323 East McDowell Road, Phoenix, AZ 85004 offers a street-level commercial opportunity with a functional structure. The design supports efficient operations, with a layout adaptable for a range of business types without extensive modification. The property's appeal stems from its simplicity and ease of access for clients and staff. It allows an occupant to integrate into an established urban setting without sacrificing functionality or operational efficiency. The property has a size of 2389 square feet and is for sale.
Key Highlights
- Street‑level commercial opportunity.
- Adaptable layout for a range of business types.
- Ease of access for clients and staff.
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
$40,897
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
5.49%
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%
$817,940
$817.9K
Cap Rate 7%
$584,243
$584.2K
Cap Rate 9%
$454,411
$454.4K
Market Conditions
NOI Build-Up for 2,389 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
$73.4K $30.72/SF
− Vacancy
−$18.9K −$7.90/SF
EGI
$54.5K $22.82/SF
− OpEx
−$13.6K −$5.71/SF
NOI
$40.9K $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%
$817,940
Cap Rate 7%
$584,243
Cap Rate 9%
$454,411
Alternative Uses
Best Use
Office B
$584.2K
$511.2K – $681.6K
NOI $40,897 @ 7.0% cap · market cap 5.49%
Second Best
Retail
$385.7K
$337.5K – $450.0K
NOI $27,001 @ 7.0% cap · market cap 3.62%
Theoretical Best
Office A
$723.6K
$633.2K – $844.3K
NOI $50,655 @ 7.0% cap · market cap 6.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,397
Businesses Nearby
Explore this area
Business Placement
Demographics for 85004, AZ
8,833
Population
6,455
Households
1.4
Avg Household Size
32
Median Age
59%
College-Educated
90%
High-School Grad
2.1 sq mi
ZIP Area
4,206
Density / Sq Mi
$71,250
Median Household Income
$46,376
Median Earnings
$1,759
Median Rent
$365,500
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Street-level commercial building suitable for various business types.
Where is this retail space located?
The property is located at 323 East McDowell Road Phoenix, AZ.
What is the asking price?
The asking price for this property is $745,000.
What are key features of this property?
This property features: Street‑level commercial opportunity.; Adaptable layout for a range of business types.; Ease of access for clients and staff.
