Vacant Office
For Sale
Contact for pricing
428 East Southern Avenue, Tempe, AZ 85282
Former insurance office with freeway access and R-0 zoning.
Property Size3,916 SF
Price / SF$301.33
Days on Market14
Property Features for 428 East Southern Avenue
General Information
Standard status
Active
Size
3,916 SF
Class
C
Total Parking Spaces
19
Property subtype
Office
Zoning
R-0
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1980
Buildings
1
Listing Agency:
Royal Commercial Real Estate LLC
Listed By:
Robert Poe · License #AZ BR665426000
Source:
Crexi
Added: Jul 29
Changed: Aug 10
Last Checked: Aug 9 at 11:41AM
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 Royal Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
This 3,916-square-foot office building was constructed in 1980 and previously operated as an insurance company office. The property is currently vacant and has been maintained for continued commercial use. R-0 zoning applies to the site.
Located at 428 East Southern Avenue in Tempe, the building is approximately 1 mile from the Superstition 60 freeway, providing convenient highway access. Showings are available with an agent or owner accompaniment.
Located at 428 East Southern Avenue in Tempe, the building is approximately 1 mile from the Superstition 60 freeway, providing convenient highway access. Showings are available with an agent or owner accompaniment.
Key Highlights
- 3,916‑square‑foot office building constructed in 1980
- Currently vacant and previously used as an insurance company office
- R‑0 zoning
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
$69,996
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
5.93%
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%
$1,399,920
$1.4M
Cap Rate 7%
$999,943
$999.9K
Cap Rate 9%
$777,733
$777.7K
Market Conditions
NOI Build-Up for 3,916 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
$118.9K $30.36/SF
− Vacancy
−$25.6K −$6.53/SF
EGI
$93.3K $23.83/SF
− OpEx
−$23.3K −$5.96/SF
NOI
$70.0K $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%
$1,399,920
Cap Rate 7%
$999,943
Cap Rate 9%
$777,733
Alternative Uses
Best Use
Office B
$999.9K
$875.0K – $1.17M
NOI $69,996 @ 7.0% cap · market cap 5.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.23M
$1.08M – $1.44M
NOI $86,201 @ 7.0% cap · market cap 7.31%
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
1,222
Businesses Nearby
Explore this area
Business Placement
Demographics for 85282, AZ
52,351
Population
25,667
Households
2
Avg Household Size
33
Median Age
44%
College-Educated
94%
High-School Grad
11.1 sq mi
ZIP Area
4,716
Density / Sq Mi
$79,084
Median Household Income
$43,863
Median Earnings
$1,627
Median Rent
$370,000
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Former insurance office with freeway access and R-0 zoning.
Where is this office building located?
The property is located at 428 East Southern Avenue Tempe, AZ.
What is the asking price?
The asking price for this property is $1,180,000.
What are key features of this property?
This property features: 3,916‑square‑foot office building constructed in 1980; Currently vacant and previously used as an insurance company office; R‑0 zoning
