Heavy-Industrial Flex
For Sale
$950,000
401 S 31ST Avenue, Phoenix, AZ 85009
A-2 heavy-industrial property with storage improvements and existing income in place.
Property Size3,430 SF
Days on Market197
Property Features for 401 S 31ST Avenue
General Information
Standard status
Active
Size
3,430 SF
Property subtype
COMMERCIAL
Zoning
A-2
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Land Use
industrial, commercial
Taxes and HOA fees
Annual Taxes
$2,924
Amenities
storage
shade
Building Details
Building Size
3,430 SF
Year Built
1958
Listing Agency:
4 U Realty Plus
(602) 489-8888
Listed By:
Nicholas Estrada · License #SA518214000
(602) 489-8888
Source:
Jcluxuryresidential
Added: Jan 26
Changed: Aug 4
Last Checked: Aug 10 at 10:09AM
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 4 U Realty Plus
Investment Insights
Based on property information with market context.
This flex-space property was built in 1958 and includes substantial storage capacity along with a large shade structure. The property comprises 3 commercial lots and carries an A-2 heavy-industrial designation, supporting an industrial-oriented operating profile.
The address is 2 miles from both I-17 and I-10 and 10 miles from the airport. Existing income is in place, offering an owner-user configuration with rental income or continued income-producing use.
The address is 2 miles from both I-17 and I-10 and 10 miles from the airport. Existing income is in place, offering an owner-user configuration with rental income or continued income-producing use.
Key Highlights
- A‑2 heavy‑industrial property
- 3 commercial lots included
- Large storage area and shade structure
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
$37,670
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
3.97%
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%
$753,400
$753.4K
Cap Rate 7%
$538,143
$538.1K
Cap Rate 9%
$418,556
$418.6K
Market Conditions
NOI Build-Up for 3,430 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
$65.9K $19.20/SF
− Vacancy
−$7.9K −$2.30/SF
EGI
$58.0K $16.90/SF
− OpEx
−$20.3K −$5.91/SF
NOI
$37.7K $10.98/SF
Area
Phoenix, AZ
Vacancy
12.00%
Lease Rate
$19.20 /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%
$753,400
Cap Rate 7%
$538,143
Cap Rate 9%
$418,556
Alternative Uses
Best Use
Flex RnD
$538.1K
$470.9K – $627.8K
NOI $37,670 @ 7.0% cap · market cap 3.97%
Second Best
Industrial
$308.2K
$269.7K – $359.6K
NOI $21,576 @ 7.0% cap · market cap 2.27%
Theoretical Best
Office A
$1.04M
$909.1K – $1.21M
NOI $72,728 @ 7.0% cap · market cap 7.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
651
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85009, AZ
50,439
Population
14,873
Households
3.4
Avg Household Size
31
Median Age
7%
College-Educated
59%
High-School Grad
14.7 sq mi
ZIP Area
3,431
Density / Sq Mi
$51,615
Median Household Income
$29,674
Median Earnings
$1,128
Median Rent
$215,300
Median Home Value
Market
Vacancy Rate% for Industrial in Phoenix, 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 - A-2 heavy-industrial property with storage improvements and existing income in place.
Where is this flex space located?
The property is located at 401 S 31ST Avenue Phoenix, AZ.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: A‑2 heavy‑industrial property; 3 commercial lots included; Large storage area and shade structure
