Phoenix Flex Space For
For Sale
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3451 S 40th St, Phoenix, AZ 85040
Remodeled flex space with office and shop areas available for sale.
Property Size3,860 SF
Price / SF$297.93
Days on Market177
Property Features for 3451 S 40th St
General Information
Standard status
Active
Size
3,860 SF
Class
B
Property subtype
Industrial
Zoning
I-1
Building Details
Year Built
1988
Year Renovated
2023
Listing Agency:
Citywide Commercial Real Estate
(602) 313-1000
Listed By:
Chad Neppl · License #AZ SA 529910000
Source:
Crexi
Added: Feb 20
Changed: Aug 15
Last Checked: Aug 14 at 6:05AM
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 Citywide Commercial Real Estate
Investment Insights
Based on property information with market context.
This property offers approximately 3,860 total square feet, including an office area of approximately 2,360 square feet and a shop area of approximately 1,500 square feet. It features 200 Amps, 240V, single-phase power, and two 10’ x 10’ grade-level doors. The property has a 12’ clear height and was remodeled in 2023. It includes four covered parking spaces and is zoned I-1. Located in the Sky Harbor Airport submarket, the property contains seven offices, four cubicles, a conference room, a reception area, a kitchen, a break room, a server room, a storage room, and restrooms. Security cameras are installed. All FF&E will convey with the sale.
Key Highlights
- Remodeled in 2023
- Includes +/- 2,360 Sq Ft of Office Space and +/- 1,500 Sq Ft of Shop Space
- All FF&E Will Convey with Sale
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
$42,392
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
3.69%
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%
$847,840
$847.8K
Cap Rate 7%
$605,600
$605.6K
Cap Rate 9%
$471,022
$471.0K
Market Conditions
NOI Build-Up for 3,860 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
$74.1K $19.20/SF
− Vacancy
−$8.9K −$2.30/SF
EGI
$65.2K $16.90/SF
− OpEx
−$22.8K −$5.91/SF
NOI
$42.4K $10.98/SF
Area
Phoenix, AZ
Vacancy
12.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$847,840
Cap Rate 7%
$605,600
Cap Rate 9%
$471,022
Alternative Uses
Best Use
Flex RnD
$605.6K
$529.9K – $706.5K
NOI $42,392 @ 7.0% cap · market cap 3.69%
Second Best
Industrial
$346.9K
$303.5K – $404.7K
NOI $24,281 @ 7.0% cap · market cap 2.11%
Theoretical Best
Office A
$1.17M
$1.02M – $1.36M
NOI $81,846 @ 7.0% cap · market cap 7.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
532
Businesses Nearby
Under-served
Demand for This Use
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
Market
Vacancy Rate% for Industrial in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Flex space - Remodeled flex space with office and shop areas available for sale.
Where is this flex space located?
The property is located at 3451 S 40th St Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: Remodeled in 2023; Includes +/- 2,360 Sq Ft of Office Space and +/- 1,500 Sq Ft of Shop Space; All FF&E Will Convey with Sale
