Corner Retail Development
For Sale
Contact for pricing
Pending
3402 North Central Avenue, Phoenix, AZ 85012
Covered land at a highly visible intersection, anchored by two established retail buildings.
Property Size33,500 SF
Lot Size2.83 Acres
Days on Market48
Property Features for 3402 North Central Avenue
General Information
Standard status
Pending
Size
33,500 SF
Lot size
2.83 Acres
Property subtype
Retail
Zoning
C-2
Occupancy
100%
Building Details
Year Built
1995
Units
2
Listing Agency:
The Bernstein Murphy Companies Llc
Listed By:
David Vallecorsa · License #SA560863000
Source:
Crexi
Added: Jul 8
Changed: Aug 8
Last Checked: Jul 30 at 3:58PM
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 The Bernstein Murphy Companies Llc
Investment Insights
Based on property information with market context.
This offering presents a covered land site with future redevelopment potential, currently under ownership since development in 1995. The property totals 2.83 acres and is anchored by two established retail buildings positioned on the northwest corner of Central Avenue and Osborn Road.
The site benefits from highly visible corner positioning and exceptional frontage at a prominent Midtown Phoenix intersection. Public remarks also note strong traffic counts and immediate proximity to the Valley Metro Light Rail, supporting the location’s continued demand.
For buyers seeking a landmark retail asset with redevelopment upside, this corner configuration provides an existing retail base alongside a development opportunity within one of the city’s growth corridors.
The site benefits from highly visible corner positioning and exceptional frontage at a prominent Midtown Phoenix intersection. Public remarks also note strong traffic counts and immediate proximity to the Valley Metro Light Rail, supporting the location’s continued demand.
For buyers seeking a landmark retail asset with redevelopment upside, this corner configuration provides an existing retail base alongside a development opportunity within one of the city’s growth corridors.
Key Highlights
- 2.83 acres of covered land at the NWC of Central Avenue and Osborn Road in Phoenix, AZ
- Two established retail buildings on the property
- Corner location at a highly visible intersection with strong traffic counts
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
$378,624
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
3.88%
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%
$7,572,480
$7.6M
Cap Rate 7%
$5,408,914
$5.4M
Cap Rate 9%
$4,206,933
$4.2M
Market Conditions
NOI Build-Up for 33,500 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
$603.0K $18.00/SF
− Vacancy
−$62.1K −$1.85/SF
EGI
$540.9K $16.15/SF
− OpEx
−$162.3K −$4.84/SF
NOI
$378.6K $11.30/SF
Area
Phoenix, AZ
Vacancy
10.30%
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%
$7,572,480
Cap Rate 7%
$5,408,914
Cap Rate 9%
$4,206,933
Alternative Uses
Best Use
Retail
$5.41M
$4.73M – $6.31M
NOI $378,624 @ 7.0% cap · market cap 3.88%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.15M
$8.88M – $11.84M
NOI $710,321 @ 7.0% cap · market cap 7.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,374
Businesses Nearby
Explore this area
Business Placement
Demographics for 85012, AZ
8,201
Population
5,269
Households
1.6
Avg Household Size
39
Median Age
60%
College-Educated
95%
High-School Grad
2.3 sq mi
ZIP Area
3,566
Density / Sq Mi
$80,242
Median Household Income
$57,228
Median Earnings
$1,693
Median Rent
$701,200
Median Home Value
Market
Vacancy Rate% for Retail in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Covered land at a highly visible intersection, anchored by two established retail buildings.
Where is this commercial land located?
The property is located at 3402 North Central Avenue Phoenix, AZ.
What is the asking price?
The asking price for this property is $9,765,000.
What are key features of this property?
This property features: 2.83 acres of covered land at the NWC of Central Avenue and Osborn Road in Phoenix, AZ; Two established retail buildings on the property; Corner location at a highly visible intersection with strong traffic counts
