Downtown Phoenix Remodeled Office
For Sale
Contact for pricing
394 N 3rd Ave, Phoenix, AZ 85003
3,433 SF remodeled office building in prime downtown location.
Property Size3,433 SF
Lot Size0.20 Acres
Price / SF$480.63
Days on Market163
Property Features for 394 N 3rd Ave
General Information
Standard status
Active
Size
3,433 SF
Class
B
Total Parking Spaces
12
Lot size
0.20 Acres
Property subtype
Office
Zoning
DTC-VANB
Listing Agency:
SVN | Desert Commercial Advisors
(480) 425-5536
Listed By:
Richard Lewis · License #AZ #SA674245000
Source:
Crexi
Added: Mar 13
Changed: Aug 14
Last Checked: Aug 21 at 10:07PM
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 SVN | Desert Commercial Advisors
Investment Insights
Based on property information with market context.
This 3,433 SF office building is available for sale or lease, situated on an 8,856 SF lot in downtown Phoenix. The property has been recently remodeled and features a functional office layout that includes mostly private offices, a large conference room, a kitchen, and two restrooms. Twelve parking spaces are available, a valuable feature in this submarket. The seller also owns the adjacent 9,952 SF lot, presenting opportunities for additional parking or future redevelopment. The property is located in downtown Phoenix, surrounded by dining, entertainment, and cultural venues. The area is experiencing ongoing development, including Class A office spaces and urban housing, which attracts professionals, residents, and visitors. Several educational campuses, including Arizona State University's downtown campus, are nearby, contributing to daytime foot traffic and a steady workforce. The property offers convenient access to the I-10 Freeway and benefits from Phoenix’s expanding economic landscape.
Key Highlights
- Prime Downtown Phoenix location on an 8,856 SF lot.
- Twelve dedicated parking spaces in a submarket where parking is a premium.
- Recently remodeled 3,433 SF office building with a functional layout.
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
$58,769
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
3.56%
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%
$1,175,380
$1.2M
Cap Rate 7%
$839,557
$839.6K
Cap Rate 9%
$652,989
$653.0K
Market Conditions
NOI Build-Up for 3,433 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
$105.5K $30.72/SF
− Vacancy
−$27.1K −$7.90/SF
EGI
$78.4K $22.82/SF
− OpEx
−$19.6K −$5.71/SF
NOI
$58.8K $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%
$1,175,380
Cap Rate 7%
$839,557
Cap Rate 9%
$652,989
Alternative Uses
Best Use
Office B
$839.6K
$734.6K – $979.5K
NOI $58,769 @ 7.0% cap · market cap 3.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.04M
$909.9K – $1.21M
NOI $72,792 @ 7.0% cap · market cap 4.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,095
Businesses Nearby
Explore this area
Business Placement
Demographics for 85003, AZ
11,042
Population
6,117
Households
1.8
Avg Household Size
37
Median Age
45%
College-Educated
87%
High-School Grad
1.9 sq mi
ZIP Area
5,812
Density / Sq Mi
$56,672
Median Household Income
$55,122
Median Earnings
$1,258
Median Rent
$577,700
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 - 3,433 SF remodeled office building in prime downtown location.
Where is this office building located?
The property is located at 394 N 3rd Ave Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Prime Downtown Phoenix location on an 8,856 SF lot.; Twelve dedicated parking spaces in a submarket where parking is a premium.; Recently remodeled 3,433 SF office building with a functional layout.
