Fenced Industrial
New
For Sale
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3420 South 3rd Place, Phoenix, AZ 85040
Secured industrial facility combining warehouse, office, covered storage, and a paved outdoor yard with multiple access points.
Property Size9,500 SF
Lot Size0.78 Acres
Price / SF$231.58
Days on Market3
Property Features for 3420 South 3rd Place
General Information
Standard status
Active
Size
9,500 SF
Lot size
0.78 Acres
Property subtype
Industrial, Land
Site & Location
Road Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Warehouse & Industrial
Clear Height
15 ft
Warehouse Space
3,800 SF
Office Build-Out
1,100 SF
Drive-In Doors
4
Amenities
Conference Room
Kitchenette
Listing Agency:
Rein & Grossoehme Commercial Real Estate
Listed By:
Max Schumacher, SIOR · License #SA678600000
Source:
Crexi
Added: Sep 15
Changed: Sep 16
Last Checked: Sep 16 at 2:52PM
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 Rein & Grossoehme Commercial Real Estate
Investment Insights
Based on property information with market context.
This industrial property offers approximately 9,500 square feet of improvements on 0.78 acres. The configuration includes about 3,800 square feet of warehouse space with 15-foot clear height, four grade-level doors measuring 14 feet wide by 12 feet high, and two yard docks with a ramp. Approximately 1,100 square feet is dedicated to office space, with three restrooms, a conference room, and a kitchenette. Covered storage accounts for approximately 4,600 square feet.
The site is fully concrete paved, fenced, and secured, with two points of ingress and egress. It is located at 3420 South 3rd Place in Phoenix, adjacent to the City of Phoenix Police Department, approximately 1.5 miles from I-17, and within convenient reach of Downtown Phoenix, Sky Harbor, and I-10. The property is suited to an owner-user or investment strategy, with a three-year sale-leaseback available upon closing. An income-producing cell tower is separately available for purchase.
The site is fully concrete paved, fenced, and secured, with two points of ingress and egress. It is located at 3420 South 3rd Place in Phoenix, adjacent to the City of Phoenix Police Department, approximately 1.5 miles from I-17, and within convenient reach of Downtown Phoenix, Sky Harbor, and I-10. The property is suited to an owner-user or investment strategy, with a three-year sale-leaseback available upon closing. An income-producing cell tower is separately available for purchase.
Key Highlights
- Approximately 9,500 SF of industrial buildings on 0.78 acres
- Approximately 3,800 SF warehouse with 15’ clear height
- Four grade‑level doors, each 14’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
$72,564
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
3.30%
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%
$1,451,280
$1.5M
Cap Rate 7%
$1,036,629
$1.0M
Cap Rate 9%
$806,267
$806.3K
Market Conditions
NOI Build-Up for 9,500 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
$96.9K $10.20/SF
− Vacancy
−$11.5K −$1.21/SF
EGI
$85.4K $8.99/SF
− OpEx
−$12.8K −$1.35/SF
NOI
$72.6K $7.64/SF
Area
Phoenix, AZ
Vacancy
11.90%
Lease Rate
$10.20 /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%
$1,451,280
Cap Rate 7%
$1,036,629
Cap Rate 9%
$806,267
Alternative Uses
Best Use
Warehouse
$1.04M
$907.1K – $1.21M
NOI $72,564 @ 7.0% cap · market cap 3.30%
Second Best
Industrial
$853.7K
$747.0K – $996.0K
NOI $59,758 @ 7.0% cap · market cap 2.72%
Theoretical Best
Office A
$2.88M
$2.52M – $3.36M
NOI $201,434 @ 7.0% cap · market cap 9.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
15 ft
Clear height
4
Drive-in doors
Yes
Fenced yard
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
487
Businesses Nearby
Explore this area
Business Placement
Demographics for 85040, AZ
33,993
Population
11,962
Households
2.8
Avg Household Size
30
Median Age
15%
College-Educated
69%
High-School Grad
10.1 sq mi
ZIP Area
3,366
Density / Sq Mi
$57,890
Median Household Income
$36,355
Median Earnings
$1,193
Median Rent
$294,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Industrial property - Secured industrial facility combining warehouse, office, covered storage, and a paved outdoor yard with multiple access points.
Where is this industrial property located?
The property is located at 3420 South 3rd Place Phoenix, AZ.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Approximately 9,500 SF of industrial buildings on 0.78 acres; Approximately 3,800 SF warehouse with 15’ clear height; Four grade‑level doors, each 14’W x 12’H
