Light Industrial
New
For Sale
$350,000
3837 E 40th, Tucson, AZ 85713
Commercial Sale, Tucson, AZ
Property Size2,160 SF
Lot Size0.16 Acres
Price / SF$162.04
Days on Market4
Property Features for 3837 E 40th
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Pima County - CI1
Security features
Security Lighting
Fencing
Fenced
Directions
South on Alvernon from Aviation, west on 40th
Subdivision
South
Standard status
Active
APN
132041010
Size
2,160 SF
Lot size
0.16 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
S138.52' N1142.06' W50' E330' NE4 .19 AC SEC 28-14-14
Tax Annual Amount
2769
Legal Description
S138.52' N1142.06' W50' E330' NE4 .19 AC SEC 28-14-14
Utilities
Sewer type
Septic Tank
Heating system
Electric (Heating), Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1986
Building materials
Block
Roof type
Rolled Hot Mop
Listing Agency:
Realty One Group Integrity
(520) 447-5922
Listed By:
Christina M Calderon · License #BR697017000
(520) 906-0769
Added: Sep 29
Last Checked: Oct 2 at 2:06AM
MLS# 22623695
Copyright © 2026 Multiple Listing Service of Southern Arizona. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,160-square-foot freestanding warehouse was built in 1986 on a 6,900-square-foot lot. Block construction, central air conditioning, and electric forced-air heating serve the building. The roof has a rolled hot-mop assembly, and the property is fenced. Public water and a septic tank are in place.
Zoned Pima County CI1, the property is located in Tucson, less than 4 miles from I-10 and near Aviation and Golf Links. Its position in an established industrial corridor provides access to the surrounding area.
Zoned Pima County CI1, the property is located in Tucson, less than 4 miles from I-10 and near Aviation and Golf Links. Its position in an established industrial corridor provides access to the surrounding area.
Key Highlights
- 2,160‑square‑foot freestanding warehouse on a 6,900‑square‑foot lot
- Pima County CI1 zoning
- Built in 1986
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
$15,780
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
4.51%
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%
$315,600
$315.6K
Cap Rate 7%
$225,429
$225.4K
Cap Rate 9%
$175,333
$175.3K
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
$19.4K $9.00/SF
− Vacancy
−$875 −$0.41/SF
EGI
$18.6K $8.59/SF
− OpEx
−$2.8K −$1.29/SF
NOI
$15.8K $7.31/SF
Area
ZIP 85713
Vacancy
4.50%
Lease Rate
$9.00 /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%
$315,600
Cap Rate 7%
$225,429
Cap Rate 9%
$175,333
Alternative Uses
Best Use
Warehouse
$225.4K
$197.3K – $263.0K
NOI $15,780 @ 7.0% cap · market cap 4.51%
Second Best
—
—
no second resolved use
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
Well-served
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
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Frequently Asked Questions
What type of property is this?
Warehouse - A freestanding block building offers a practical footprint for light industrial operations.
Where is this warehouse 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 warehouse on a 6,900‑square‑foot lot; Pima County CI1 zoning; Built in 1986
