Flex Building with P-I
For Sale
$3,500,000
3550 N 1st Ave, Tucson, AZ 85719
Park Industrial zoning supports light industrial, office, showroom, and service uses.
Property Size22,088 SF
Price / SF$158.46
Days on Market455
Property Features for 3550 N 1st Ave
General Information
Standard status
Active
Size
22,088 SF
Property subtype
Commercial
Building Details
Year Built
1984
Listing Agency:
Long Realty
(520) 465-8000
Listed By:
Edward W Henne
Source:
Exploretucsonproperties
Added: Jun 2, 2025
Changed: Aug 29
Last Checked: Aug 25 at 6:13AM
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 Long Realty
Investment Insights
Based on property information with market context.
Built in 1984, this 22,088-square-foot flex property combines a commercial building format with P-I (Park Industrial) zoning. The stated use profile includes light industrial, office, showroom, and service applications, providing a range of potential configurations within the existing asset.
The property is positioned at 3550 N 1st Ave in Tucson, at a high-traffic corner with prominent exposure. Long-term tenants are in place, and the property is reported at a 7% cap rate. Its central Tucson location and zoning designation add practical context for evaluating the asset's current occupancy and permitted commercial use profile.
The property is positioned at 3550 N 1st Ave in Tucson, at a high-traffic corner with prominent exposure. Long-term tenants are in place, and the property is reported at a 7% cap rate. Its central Tucson location and zoning designation add practical context for evaluating the asset's current occupancy and permitted commercial use profile.
Key Highlights
- 22,088‑square‑foot flex property at 3550 N 1st Ave
- P‑I (Park Industrial) zoning
- Listed use profile includes light industrial, office, showroom, and service uses
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
$209,956
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
6.00%
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%
$4,199,120
$4.2M
Cap Rate 7%
$2,999,371
$3.0M
Cap Rate 9%
$2,332,844
$2.3M
Market Conditions
NOI Build-Up for 22,088 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
$318.1K $14.40/SF
− Vacancy
−$18.1K −$0.82/SF
EGI
$299.9K $13.58/SF
− OpEx
−$90.0K −$4.07/SF
NOI
$210.0K $9.51/SF
Area
Tucson, AZ
Vacancy
5.70%
Lease Rate
$14.40 /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%
$4,199,120
Cap Rate 7%
$2,999,371
Cap Rate 9%
$2,332,844
Alternative Uses
Best Use
Office B
$4.61M
$4.03M – $5.38M
NOI $322,759 @ 7.0% cap · market cap 9.22%
Second Best
Retail
$3.00M
$2.62M – $3.50M
NOI $209,956 @ 7.0% cap · market cap 6.00%
Theoretical Best
Office A
$5.74M
$5.02M – $6.69M
NOI $401,655 @ 7.0% cap · market cap 11.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
896
Businesses Nearby
Under-served
Demand for This Use
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 Office in Tucson, AZ
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Park Industrial zoning supports light industrial, office, showroom, and service uses.
Where is this flex space located?
The property is located at 3550 N 1st Ave Tucson, AZ.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 22,088‑square‑foot flex property at 3550 N 1st Ave; P‑I (Park Industrial) zoning; Listed use profile includes light industrial, office, showroom, and service uses
