Cold Storage Distribution
For Sale
$2,000,000
345 South Kino Parkway, Tucson, AZ 85719
Renovated industrial cold storage facility with refrigeration/freezer infrastructure, dock loading, and strong power capacity.
Property Size19,346 SF
Price / SF$103.38
Days on Market51
Property Features for 345 South Kino Parkway
General Information
Standard status
Active
Size
19,346 SF
Total Parking Spaces
284
Property subtype
Industrial
Zoning
I-2
Warehouse & Industrial
Dock-High Doors
2
Drive-In Doors
1
Heavy Power
Yes
Building Details
Year Built
1970
Year Renovated
2001
Listing Agency:
CBRE - Tucson
(520) 247-9194
Listed By:
Tim Healy · License #AZSA045285000
(520) 247-9194
Source:
Cbre
Added: Jul 3
Changed: Aug 14
Last Checked: Aug 21 at 1:05PM
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 CBRE - Tucson
Investment Insights
Based on property information with market context.
This 19,346-square-foot industrial facility is designed for cold storage and distribution, with specialized refrigeration and freezer infrastructure to support temperature-controlled operations. The property offers I-2 zoning, which allows for perishable goods manufacturing in addition to related distribution use. Built in 1970 and renovated in 2001, the facility includes dock loading with two docks and a grade-level loading arrangement, along with ample parking suitable for manufacturing and related workforce needs. Electrical service is a key feature, with 1,200 amps at 220 volts and 3-phase power capacity to support industrial equipment.
Located in central Tucson near I-10, the site is positioned for efficient regional connectivity. The property also benefits from adequate truck turning radius to support inbound and outbound logistics, along with on-site parking to serve manufacturing operations.
For operators seeking an industrial setup for refrigerated and freezer-controlled product handling, this facility’s specialized cold storage infrastructure, dock configuration, and operational power capacity provide a practical platform. The I-2 zoning also supports perishable goods manufacturing, making it a good fit for businesses that need both temperature-controlled storage and light manufacturing within the same facility.
Located in central Tucson near I-10, the site is positioned for efficient regional connectivity. The property also benefits from adequate truck turning radius to support inbound and outbound logistics, along with on-site parking to serve manufacturing operations.
For operators seeking an industrial setup for refrigerated and freezer-controlled product handling, this facility’s specialized cold storage infrastructure, dock configuration, and operational power capacity provide a practical platform. The I-2 zoning also supports perishable goods manufacturing, making it a good fit for businesses that need both temperature-controlled storage and light manufacturing within the same facility.
Key Highlights
- 19,346 SF industrial cold storage/distribution facility with specialized refrigeration and freezer infrastructure
- I‑2 zoning allows perishable goods manufacturing
- Built in 1970; renovated in 2001
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
$170,232
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
8.51%
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%
$3,404,640
$3.4M
Cap Rate 7%
$2,431,886
$2.4M
Cap Rate 9%
$1,891,467
$1.9M
Market Conditions
NOI Build-Up for 19,346 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
$211.3K $10.92/SF
− Vacancy
−$11.0K −$0.57/SF
EGI
$200.3K $10.35/SF
− OpEx
−$30.0K −$1.55/SF
NOI
$170.2K $8.80/SF
Area
Tucson, AZ
Vacancy
5.20%
Lease Rate
$10.92 /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%
$3,404,640
Cap Rate 7%
$2,431,886
Cap Rate 9%
$1,891,467
Alternative Uses
Best Use
Warehouse
$2.43M
$2.13M – $2.84M
NOI $170,232 @ 7.0% cap · market cap 8.51%
Second Best
Industrial
$2.00M
$1.75M – $2.34M
NOI $140,191 @ 7.0% cap · market cap 7.01%
Theoretical Best
Office A
$5.03M
$4.40M – $5.86M
NOI $351,794 @ 7.0% cap · market cap 17.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Dock-high doors
1
Drive-in doors
Yes
Heavy power
Location Intelligence
Trade Area within ½ mile
1,306
Businesses Nearby
Explore this area
Business Placement
Demographics for 85719, AZ
46,242
Population
21,707
Households
2.1
Avg Household Size
27
Median Age
46%
College-Educated
93%
High-School Grad
8.0 sq mi
ZIP Area
5,780
Density / Sq Mi
$41,086
Median Household Income
$17,430
Median Earnings
$1,051
Median Rent
$266,900
Median Home Value
Market
Vacancy Rate% for Industrial in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Refrigerated & cold storage - Renovated industrial cold storage facility with refrigeration/freezer infrastructure, dock loading, and strong power capacity.
Where is this refrigerated & cold storage located?
The property is located at 345 South Kino Parkway Tucson, AZ.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 19,346 SF industrial cold storage/distribution facility with specialized refrigeration and freezer infrastructure; I‑2 zoning allows perishable goods manufacturing; Built in 1970; renovated in 2001
