Insulated Flex
For Sale
$2,699,000
4239 N 40th Avenue, Phoenix, AZ 85019
Versatile commercial facility with loading infrastructure, office, retail, showroom, and kitchen areas.
Property Size11,794 SF
Price / SF$224.92
Days on Market181
Property Features for 4239 N 40th Avenue
General Information
Standard status
Active
Size
11,794 SF
Total Parking Spaces
8
Property subtype
Commercial
Zoning
COMM / OT / RP
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Warehouse & Industrial
Dock-High Doors
3
Cold Storage
Yes
Freezer
500 SF
Cooler
500 SF
Taxes and HOA fees
Annual Taxes
$10,034
Amenities
Commercial kitchen
Security system w/ cameras
Restroom with shower and washer/dryer
Building Details
Building Size
11,794 SF
Year Built
1971
Buildings
1
Stories
1
Listing Agency:
Down-Home Realty, LLC
(602) 810-4523
Listed By:
Lindon Gareis · License #BR656612000
(602) 810-4523
Source:
Sunhaven-realestate
Added: Feb 21
Changed: Aug 21
Last Checked: Aug 21 at 4:17AM
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 Down-Home Realty, LLC
Investment Insights
Based on property information with market context.
This flex-space property provides almost 16,000 sq ft under roof, including apprx 12K sq ft of interior area and apprx 3,600 sq ft of loading space. The building includes a commercial kitchen, a 20 x 25 walk-in freezer, a 20 x 25 walk-in cooler, office areas, retail space, showroom space, and two restrooms. The ladies’ restroom also contains a shower and washer/dryer. Interior insulation was completed in 2023, and a security system with cameras is installed.
A covered two-bay semi loading dock is equipped with two 12 x 12 rolling doors and one 12 x 16 sliding door. The property is perimeter fenced, with fenced parking for 8 spaces. Built in 1971, the facility is zoned COMM / OT / RP and offers access to I-17, Hwy 60, and I-10 in Phoenix. A Phase 1 environmental assessment was completed in July 2023.
A covered two-bay semi loading dock is equipped with two 12 x 12 rolling doors and one 12 x 16 sliding door. The property is perimeter fenced, with fenced parking for 8 spaces. Built in 1971, the facility is zoned COMM / OT / RP and offers access to I-17, Hwy 60, and I-10 in Phoenix. A Phase 1 environmental assessment was completed in July 2023.
Key Highlights
- Nearly 16,000 sq ft beneath roof, with apprx 12K sq ft inside and apprx 3,600 sq ft devoted to loading
- Covered two‑bay semi dock with two 12 x 12 rolling doors and one 12 x 16 sliding door
- Commercial kitchen with a 20 x 25 walk‑in freezer and 20 x 25 walk‑in cooler
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
$131,789
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
4.88%
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%
$2,635,780
$2.6M
Cap Rate 7%
$1,882,700
$1.9M
Cap Rate 9%
$1,464,322
$1.5M
Market Conditions
NOI Build-Up for 12,000 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
$230.4K $19.20/SF
− Vacancy
−$27.6K −$2.30/SF
EGI
$202.8K $16.90/SF
− OpEx
−$71.0K −$5.91/SF
NOI
$131.8K $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%
$2,635,780
Cap Rate 7%
$1,882,700
Cap Rate 9%
$1,464,322
Alternative Uses
Best Use
Flex RnD
$1.88M
$1.65M – $2.20M
NOI $131,789 @ 7.0% cap · market cap 4.88%
Second Best
Warehouse
$1.31M
$1.15M – $1.53M
NOI $91,659 @ 7.0% cap · market cap 3.40%
Theoretical Best
Office A
$3.63M
$3.18M – $4.24M
NOI $254,443 @ 7.0% cap · market cap 9.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Dock-high doors
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,025
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85019, AZ
27,677
Population
8,127
Households
3.4
Avg Household Size
29
Median Age
11%
College-Educated
67%
High-School Grad
3.7 sq mi
ZIP Area
7,480
Density / Sq Mi
$58,767
Median Household Income
$34,354
Median Earnings
$1,342
Median Rent
$255,700
Median Home Value
Market
Vacancy Rate% for Industrial in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Versatile commercial facility with loading infrastructure, office, retail, showroom, and kitchen areas.
Where is this flex space located?
The property is located at 4239 N 40th Avenue Phoenix, AZ.
What is the asking price?
The asking price for this property is $2,699,000.
What are key features of this property?
This property features: Nearly 16,000 sq ft beneath roof, with apprx 12K sq ft inside and apprx 3,600 sq ft devoted to loading; Covered two‑bay semi dock with two 12 x 12 rolling doors and one 12 x 16 sliding door; Commercial kitchen with a 20 x 25 walk‑in freezer and 20 x 25 walk‑in cooler
