Value-Add Strip Mall
3400-3420 E Thomas Rd Phoenix AZ 85018, Phoenix, AZ 85018
High-traffic strip mall with significant upside potential.
Type:Retail
Property size:
21,938 SFPrice / SF:
$159/SF- Added:
- Dec 18, 2025
- Days on Market:
- 155
- Last Refresh:
- Mar 17 at 1:19 pm
Property Features for 3400-3420 E Thomas Rd Phoenix AZ 85018
General Information
- Standard status
- Active
- Size
- 21,938 SF
- Property subtype
- Retail
Building Details
- Year Built
- 1960
Listing agent Omar Rascon License #SA704894000
Listing office Marcus & Millichap - Phoenix
Listing date Dec 18, 2025
Source Crexi
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 Marcus & Millichap - Phoenix
HighLights
- Significant rental upside: current rents at $8.00/sq ft compared to market rates of $18.00/sq ft.
- High‑traffic location on Thomas Road with approximately 40,834 vehicles per day.
- 86% occupancy rate with two vacant suites offering immediate lease‑up potential.
- Directly across from 320 new multifamily units, increasing potential customer base.
- Located in a retail corridor with limited retail supply, supporting durable tenant demand.
- Proximity to a Walmart and Home Depot, driving customer traffic to the area.
Overview
This value-add strip mall property is located in a high-traffic retail corridor with frontage on Thomas Road, which sees approximately 40,834 vehicles per day. It is situated directly across from 320 new multifamily units that are coming online. The center is 86% occupied and features below-market rents, averaging approximately $8.00 per square foot, while the market achieves closer to $18.00 per square foot. This creates near-term upside through lease-up and repricing. A dominant neighborhood retail center anchored by a Walmart and a Home Depot is located down the road. The property size is 21938 square feet.
Financial Insights
Value Estimation Calculated for Retail
Conservative
$2.75M
NOI $247,948 @ 9.00% cap · cautious / downside scenario
Moderate
$3.54M
NOI $247,948 @ 7.00% cap · market / base-case scenario
Aggressive
$4.96M
NOI $247,948 @ 5.00% cap · optimistic / upside scenario
NOI & Cap Rate Calculator
NOI Build-Up
- 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.
Calculated for Retail
| Component | $ | $/SF |
|---|---|---|
| Gross rent | $394.9k | $18.00 |
| − Vacancy | −$40.7k | −$1.85 |
| EGI | $354.2k | $16.15 |
| − OpEx | −$106.3k | −$4.84 |
| NOI | $247.9k | $11.30 |
21,938 SF · lease $18.00/SF/yr · vacancy 10.30% · expense 30.00%
Alternative Use Scenarios
Best Use
Retail
$3.54M
$3.10M – $4.13M
NOI $247,948 @ 7.0% cap · market cap 7.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.65M
$5.81M – $7.75M
NOI $465,165 @ 7.0% cap · market cap 13.29%
Zoning and permitted uses should be independently verified with local authorities.
Location Intelligence
Current Use by Public Records
Strip malls
Location Insight
- Map
- Local Demand
- City
- Phoenix
- County
- Maricopa
- State
- Arizona
- Longitude
- -112.133941
- Latitude
- 33.480778
Nearby Similar for Sale
FAQs
What type of property is this?
Strip mall - High-traffic strip mall with significant upside potential.
Where is this strip mall located?
The property is located at 3400-3420 E Thomas Rd Phoenix AZ 85018 Phoenix, AZ.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Significant rental upside: current rents at $8.00/sq ft compared to market rates of $18.00/sq ft.; High‑traffic location on Thomas Road with approximately 40,834 vehicles per day.; 86% occupancy rate with two vacant suites offering immediate lease‑up potential.
