Historic Red-Brick Office
For Sale
Contact for pricing
406 S 4th Ave, Tucson, AZ 85701
Historic red-brick office building near Downtown Tucson’s restaurant and entertainment district.
Property Size3,060 SF
Price / SF$300
Days on Market104
Property Features for 406 S 4th Ave
General Information
Standard status
Active
Size
3,060 SF
Property subtype
OFFICE
Building Details
Construction
red-brick
Listing Agency:
CBRE | Tucson
(520) 323-5100
Listed By:
Jeff Casper · License #632063
(520) 307-2336
Source:
Moodyscre
Added: Jun 4
Changed: Sep 14
Last Checked: Sep 15 at 6:58AM
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 CBRE | Tucson
Investment Insights
Based on property information with market context.
This historic red-brick office building offers 3,060 SF of commercial space at 406 S 4th Ave in Tucson, AZ 85701. The building’s classic exterior provides character while supporting an office use.
Positioned just outside Downtown Tucson’s busy core, the property is described as within walking distance to the Downtown restaurant and entertainment district. That proximity can be useful for employees and visitors looking for nearby dining and evening options.
With its compact size and central access to Downtown, this is a solid fit for an office tenant seeking a historic building in the Downtown orbit, without being directly in the core. The property’s exterior character and convenient Downtown proximity are the primary practical features reflected in the available information.
Positioned just outside Downtown Tucson’s busy core, the property is described as within walking distance to the Downtown restaurant and entertainment district. That proximity can be useful for employees and visitors looking for nearby dining and evening options.
With its compact size and central access to Downtown, this is a solid fit for an office tenant seeking a historic building in the Downtown orbit, without being directly in the core. The property’s exterior character and convenient Downtown proximity are the primary practical features reflected in the available information.
Key Highlights
- Historic red‑brick office building exterior
- 406 S 4th Ave, Tucson, AZ 85701
- 3,060 SF office building
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
$44,714
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
4.87%
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%
$894,280
$894.3K
Cap Rate 7%
$638,771
$638.8K
Cap Rate 9%
$496,822
$496.8K
Market Conditions
NOI Build-Up for 3,060 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
$66.1K $21.60/SF
− Vacancy
−$6.5K −$2.12/SF
EGI
$59.6K $19.48/SF
− OpEx
−$14.9K −$4.87/SF
NOI
$44.7K $14.61/SF
Area
Tucson, AZ
Vacancy
9.80%
Lease Rate
$21.60 /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%
$894,280
Cap Rate 7%
$638,771
Cap Rate 9%
$496,822
Alternative Uses
Best Use
Office B
$638.8K
$558.9K – $745.2K
NOI $44,714 @ 7.0% cap · market cap 4.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$794.9K
$695.6K – $927.4K
NOI $55,644 @ 7.0% cap · market cap 6.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,626
Businesses Nearby
Explore this area
Business Placement
Demographics for 85701, AZ
5,132
Population
3,631
Households
1.4
Avg Household Size
37
Median Age
57%
College-Educated
91%
High-School Grad
1.5 sq mi
ZIP Area
3,421
Density / Sq Mi
$52,672
Median Household Income
$43,762
Median Earnings
$1,183
Median Rent
$451,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Tucson, AZ
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Frequently Asked Questions
What type of property is this?
Office building - Historic red-brick office building near Downtown Tucson’s restaurant and entertainment district.
Where is this office building located?
The property is located at 406 S 4th Ave Tucson, AZ.
What is the asking price?
The asking price for this property is $918,000.
What are key features of this property?
This property features: Historic red‑brick office building exterior; 406 S 4th Ave, Tucson, AZ 85701; 3,060 SF office building
