Freestanding Flex
New
For Sale
$350,000
3837 E 40th, Tucson, AZ 85713
A recently recoated roof and CI-1 zoning complement this industrial property’s freestanding configuration.
Property Size2,160 SF
Lot Size0.16 Acres
Price / SF$162.04
Days on Market2
Property Features for 3837 E 40th
General Information
Standard status
Active
Size
2,160 SF
Lot size
0.16 Acres
Zoning
CI-1
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Asking Price
$350,000
Building Details
Year Built
1986
Buildings
1
Building Size
2,160 SF
Listing Agency:
Realty One Group Integrity
Listed By:
Christina M Calderon · License #BR697017000
(520) 423-7888
Source:
Wowrealestate
Added: Oct 1
Last Checked: Oct 1 at 2:24PM
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 Realty One Group Integrity
Investment Insights
Based on property information with market context.
This freestanding flex building contains approximately 2,160 square feet on a 6,900-square-foot lot. Built in 1986, it has a recently recoated roof and CI-1 (Light Industrial) zoning, which allows industrial and commercial uses.
The property is in an established Tucson industrial corridor near Aviation and Golf Links, with access to I-10 less than 4 miles away.
The property is in an established Tucson industrial corridor near Aviation and Golf Links, with access to I-10 less than 4 miles away.
Key Highlights
- 2,160‑square‑foot freestanding building
- 6,900‑square‑foot lot
- CI‑1 (Light Industrial) zoning allows industrial and commercial 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
$20,150
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
5.76%
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%
$403,000
$403.0K
Cap Rate 7%
$287,857
$287.9K
Cap Rate 9%
$223,889
$223.9K
Market Conditions
NOI Build-Up for 2,160 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
$33.7K $15.60/SF
− Vacancy
−$2.7K −$1.25/SF
EGI
$31.0K $14.35/SF
− OpEx
−$10.9K −$5.02/SF
NOI
$20.2K $9.33/SF
Area
ZIP 85713
Vacancy
8.00%
Lease Rate
$15.60 /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%
$403,000
Cap Rate 7%
$287,857
Cap Rate 9%
$223,889
Alternative Uses
Best Use
Flex RnD
$287.9K
$251.9K – $335.8K
NOI $20,150 @ 7.0% cap · market cap 5.76%
Second Best
Warehouse
$225.4K
$197.3K – $263.0K
NOI $15,780 @ 7.0% cap · market cap 4.51%
Theoretical Best
Office A
$528.8K
$462.7K – $616.9K
NOI $37,014 @ 7.0% cap · market cap 10.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
497
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 85713, AZ
46,810
Population
19,056
Households
2.5
Avg Household Size
38
Median Age
21%
College-Educated
79%
High-School Grad
23.8 sq mi
ZIP Area
1,967
Density / Sq Mi
$50,264
Median Household Income
$32,302
Median Earnings
$1,017
Median Rent
$171,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Tucson, AZ
Questions? Ask Rey
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Similar Off Market Nearby
- G Hing Food Services Inc — 3515 E Golf Links Rd, Tucson, AZ 85713
Frequently Asked Questions
What type of property is this?
Flex space - A recently recoated roof and CI-1 zoning complement this industrial property’s freestanding configuration.
Where is this flex space located?
The property is located at 3837 E 40th Tucson, AZ.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 2,160‑square‑foot freestanding building; 6,900‑square‑foot lot; CI‑1 (Light Industrial) zoning allows industrial and commercial uses
