Value Add Strip Mall
3404 E Thomas Rd Phoenix, AZ 85018
For Sale
$3,400,000
Strip mall in high-traffic area with significant upside potential.
Property Size21,930 SF
Price / SF$155.04
Days on Market114
Property Features for 3404 E Thomas Rd
General Information
- Standard status
- Active
- Size
- 21,930 SF
- Property subtype
- Shopping Strip
Building Details
- Year Built
- 1960
Listing Agency:
Phoenix Office
(602) 687-6762
Listed By:
Omar Rascon · License #License(s): AZ: SA704894000
(602) 687-6762
Source:
Marcusmillichap
Added: Apr 3
Changed: Jul 10
Last Checked: Jul 25 at 2:13AM
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 Phoenix Office
Investment Insights
Based on property information with market context.
This strip mall property is located in a high-traffic retail corridor with frontage on Thomas Road, which sees approximately 40,834 vehicles per day. The property 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 neighborhood retail center anchored by a Walmart and a Home Depot is located down the road. The Walmart is in the 13th percentile and the Home Depot is in the 5th percentile for visitation, according to Placer.ai. The property's high-traffic setting and limited nearby retail supply support durable tenant demand and immediate upside. The property size is 21930 square feet.
Key Highlights
- High‑traffic location on Thomas Road with approximately 40,834 vehicles per day.
- Significant upside potential through lease‑up of 2 vacant suites.
- Below‑market rents averaging $8.00 per square foot compared to market rents of $18.00 per square foot.
Financial Insights For Retail
Simulate Cap Rate and NOI
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.
| Component | $ | $/SF |
|---|---|---|
| Gross rent | $394.7k | $18.00 |
| − Vacancy | −$40.7k | −$1.85 |
| EGI | $354.1k | $16.15 |
| − OpEx | −$106.2k | −$4.84 |
| NOI | $247.9k | $11.30 |
21,930 SF · lease $18.00/SF/yr · vacancy 10.30% · expense 30.00%
Alternative Uses
Best Use
Retail
$3.54M
$3.10M – $4.13M
NOI $247,857 @ 7.0% cap · market cap 7.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.64M
$5.81M – $7.75M
NOI $464,995 @ 7.0% cap · market cap 13.68%
Zoning and permitted uses should be independently verified with local authorities.
Property Analytics
Property Profile
Location Intelligence
Current Use by Public Records
Strip malls
FAQs
What type of property is this?
Strip mall - Strip mall in high-traffic area with significant upside potential.
Where is this strip mall located?
The property is located at 3404 E Thomas Rd Phoenix, AZ.
What is the asking price?
The asking price for this property is $3,400,000.
What are key features of this property?
This property features: High‑traffic location on Thomas Road with approximately 40,834 vehicles per day.; Significant upside potential through lease‑up of 2 vacant suites.; Below‑market rents averaging $8.00 per square foot compared to market rents of $18.00 per square foot.
