Freestanding Office Flex
For Sale
$4,471,000
420 S Smith Rd, Tempe, AZ 85288
Freestanding office and warehouse space with a roll-up door, outdoor patio, and secured covered parking on 1.13 acres.
Property Size16,843 SF
Lot Size1.13 Acres
Days on Market67
Property Features for 420 S Smith Rd
General Information
Standard status
Active
Size
16,843 SF
Lot size
1.13 Acres
Property subtype
Industrial
Occupancy
100%
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
outdoor patio/seating area
covered parking
Building Details
Building Size
16,843 SF
Year Built
1999
Tenancy
Single
Listing Agency:
Menlo Group Commercial Real Estate
(480) 469-6008
Listed By:
Tom Ellixson, CCIM · License #BR584594000
Source:
Menlocre
Added: Jun 22
Changed: Aug 26
Last Checked: Aug 26 at 8:04AM
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 Menlo Group Commercial Real Estate
Investment Insights
Based on property information with market context.
The property is a freestanding office/flex building combining office space and warehouse space, with a roll-up garage door for the warehouse component. It also includes an outdoor patio/seating area and a secured 1.13-acre lot with covered parking.
The site is positioned for convenient access to Arizona State University, Downtown Tempe, Phoenix Sky Harbor, Loop 101, Loop 202, SR-143, US-60, and I-10.
The property is 100% leased to Pavion under a NNN lease, with the current term remaining through August 28, 2029, and 3% annual rent increases.
The site is positioned for convenient access to Arizona State University, Downtown Tempe, Phoenix Sky Harbor, Loop 101, Loop 202, SR-143, US-60, and I-10.
The property is 100% leased to Pavion under a NNN lease, with the current term remaining through August 28, 2029, and 3% annual rent increases.
Key Highlights
- Freestanding office/flex building with office space and warehouse area featuring a roll‑up garage door
- Outdoor patio/seating area plus covered, secured parking on a 1.13‑acre lot
- 100% leased to Pavion under an NNN lease
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
$301,059
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
6.73%
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%
$6,021,180
$6.0M
Cap Rate 7%
$4,300,843
$4.3M
Cap Rate 9%
$3,345,100
$3.3M
Market Conditions
NOI Build-Up for 16,843 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
$511.4K $30.36/SF
− Vacancy
−$109.9K −$6.53/SF
EGI
$401.4K $23.83/SF
− OpEx
−$100.4K −$5.96/SF
NOI
$301.1K $17.87/SF
Area
Tempe, AZ
Vacancy
21.50%
Lease Rate
$30.36 /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%
$6,021,180
Cap Rate 7%
$4,300,843
Cap Rate 9%
$3,345,100
Alternative Uses
Best Use
Office B
$4.30M
$3.76M – $5.02M
NOI $301,059 @ 7.0% cap · market cap 6.73%
Second Best
Warehouse
$2.66M
$2.33M – $3.10M
NOI $186,109 @ 7.0% cap · market cap 4.16%
Theoretical Best
Office A
$5.30M
$4.63M – $6.18M
NOI $370,755 @ 7.0% cap · market cap 8.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,605
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Freestanding office and warehouse space with a roll-up door, outdoor patio, and secured covered parking on 1.13 acres.
Where is this flex space located?
The property is located at 420 S Smith Rd Tempe, AZ.
What is the asking price?
The asking price for this property is $4,471,000.
What are key features of this property?
This property features: Freestanding office/flex building with office space and warehouse area featuring a roll‑up garage door; Outdoor patio/seating area plus covered, secured parking on a 1.13‑acre lot; 100% leased to Pavion under an NNN lease
