Freestanding Office
For Sale
$499,000
3602 N 15TH Avenue, Phoenix, AZ 85015
Freestanding office building with eight private offices, conference room, and breakroom on a large R-4 lot.
Property Size1,837 SF
Days on Market503
Property Features for 3602 N 15TH Avenue
General Information
Standard status
Active
Size
1,837 SF
Property subtype
COMMERCIAL
Taxes and HOA fees
Annual Taxes
$4,979
Building Details
Building Size
1,837 SF
Year Built
1957
Listing Agency:
Compass
Listed By:
Blake Mallery · License #SA680838000
(602) 851-7677
Source:
Jcluxuryresidential
Added: Apr 21, 2025
Changed: Sep 4
Last Checked: Sep 5 at 5:45AM
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 Compass
Investment Insights
Based on property information with market context.
This freestanding office building offers a well-laid-out interior designed for professional use. The approximately 1,836 SF space includes eight private offices, a conference room, and a breakroom, supporting a variety of general office or professional service operations.
The property sits on a 14,215 SF lot and is zoned R-4. It is located at 3602 N 15th Ave in Phoenix, with seller financing available.
The property sits on a 14,215 SF lot and is zoned R-4. It is located at 3602 N 15th Ave in Phoenix, with seller financing available.
Key Highlights
- 1,836 SF freestanding office building with a layout designed for professional office use
- Interior includes eight private offices plus a conference room and breakroom
- Located on a 14,215 SF lot
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
$31,447
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
6.30%
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%
$628,940
$628.9K
Cap Rate 7%
$449,243
$449.2K
Cap Rate 9%
$349,411
$349.4K
Market Conditions
NOI Build-Up for 1,837 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
$56.4K $30.72/SF
− Vacancy
−$14.5K −$7.90/SF
EGI
$41.9K $22.82/SF
− OpEx
−$10.5K −$5.71/SF
NOI
$31.4K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /SF/Yr
Expense Ratio
25.00%
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%
$628,940
Cap Rate 7%
$449,243
Cap Rate 9%
$349,411
Alternative Uses
Best Use
Office B
$449.2K
$393.1K – $524.1K
NOI $31,447 @ 7.0% cap · market cap 6.30%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$556.4K
$486.9K – $649.2K
NOI $38,951 @ 7.0% cap · market cap 7.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,204
Businesses Nearby
Explore this area
Business Placement
Demographics for 85015, AZ
41,436
Population
17,889
Households
2.3
Avg Household Size
33
Median Age
25%
College-Educated
78%
High-School Grad
4.9 sq mi
ZIP Area
8,456
Density / Sq Mi
$52,585
Median Household Income
$36,456
Median Earnings
$1,227
Median Rent
$312,600
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Freestanding office building with eight private offices, conference room, and breakroom on a large R-4 lot.
Where is this office building located?
The property is located at 3602 N 15TH Avenue Phoenix, AZ.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: 1,836 SF freestanding office building with a layout designed for professional office use; Interior includes eight private offices plus a conference room and breakroom; Located on a 14,215 SF lot
