Office/Flex Warehouse with
For Sale
Contact for pricing
420 S Smith Rd., Tempe, AZ 85288
Freestanding office and warehouse flex building with a roll-up door, outdoor patio, and secured covered parking on 1.13 acres.
Property Size16,843 SF
Lot Size1.13 Acres
Price / SF$265.45
Days on Market72
Property Features for 420 S Smith Rd.
General Information
Standard status
Active
Size
16,843 SF
Total Parking Spaces
67
Lot size
1.13 Acres
Property subtype
Office, Industrial
Zoning
GID - Tempe
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$315,230
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Amenities
outdoor patio/seating area
covered parking
Building Details
Year Built
1999
Stories
2
Tenancy
Single
Listing Agency:
The Menlo Group Commercial Real Estate LLC
Listed By:
Tom Ellixson · License #AZ SA672216000
(480) 469-6008
Source:
Crexi
Added: Jul 6
Changed: Sep 13
Last Checked: Sep 15 at 4:49AM
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 The Menlo Group Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
This freestanding office/flex property includes office space and warehouse space with a roll-up garage door. The building also offers an outdoor patio/seating area and sits on a secured 1.13-acre lot with covered parking.
The property is positioned for convenient access to Arizona State University, Downtown Tempe, Phoenix Sky Harbor, and major thoroughfares including Loop 101, Loop 202, SR-143, US-60, and I-10.
The property is 100% leased to Pavion under an NNN lease, with term remaining through August 28, 2029, and 3% annual rent increases.
The property is positioned for convenient access to Arizona State University, Downtown Tempe, Phoenix Sky Harbor, and major thoroughfares including Loop 101, Loop 202, SR-143, US-60, and I-10.
The property is 100% leased to Pavion under an NNN lease, with term remaining through August 28, 2029, and 3% annual rent increases.
Key Highlights
- Freestanding office/flex building (1999) with office space and a warehouse with roll‑up garage door
- 100% leased to Pavion under an NNN lease with term remaining through August 28, 2029
- 3% annual rent increases under the existing 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
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Open Analytics
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,605
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Flex space - Freestanding office and warehouse flex building 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 (1999) with office space and a warehouse with roll‑up garage door; 100% leased to Pavion under an NNN lease with term remaining through August 28, 2029; 3% annual rent increases under the existing lease
