Renovated Medical/Professional Office
For Sale
Contact for pricing
4801 E McDowell Rd Suite 255, Phoenix, AZ 85006
Multi-tenant office building near Phoenix Sky Harbor Airport.
Property Size2,354 SF
Price / SF$195
Days on Market164
Property Features for 4801 E McDowell Rd Suite 255
General Information
Standard status
Active
Size
2,354 SF
Property subtype
Office
Zoning
C-2, City of Phoenix
Lease Type
NNN
Investment Type
Owner/User
Building Details
Year Built
1982
Year Renovated
2023
Stories
2
Tenancy
Multi
Listing Agency:
LevRose Commercial Real Estate
(480) 628-4753
Listed By:
Billy Cowan · License #SA708544000
Source:
Crexi
Added: Feb 26
Changed: Aug 8
Last Checked: Aug 8 at 4:38AM
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 LevRose Commercial Real Estate
Investment Insights
Based on property information with market context.
The property is a ±21,884 square foot, two-story, multi-tenant medical and professional office building. It recently underwent an extensive $1.5 million renovation in 2023, which included upgrades to the HVAC systems, a new roof, and full building modernization. The property was re-platted into 10 individual condominium units, offering businesses the option to lease or purchase their own suite. The property is strategically positioned with immediate access to Phoenix Sky Harbor International Airport and the regional freeway network via SR-143, providing convenience and connectivity.
Key Highlights
- ±21,884 SF, two‑story, multi‑tenant medical and professional office building.
- Recently completed $1.5 million renovation in 2023, including new HVAC systems and a new roof.
- Full building modernization completed in 2023.
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
$40,297
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
8.78%
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%
$805,940
$805.9K
Cap Rate 7%
$575,671
$575.7K
Cap Rate 9%
$447,744
$447.7K
Market Conditions
NOI Build-Up for 2,354 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
$72.3K $30.72/SF
− Vacancy
−$18.6K −$7.90/SF
EGI
$53.7K $22.82/SF
− OpEx
−$13.4K −$5.71/SF
NOI
$40.3K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /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%
$805,940
Cap Rate 7%
$575,671
Cap Rate 9%
$447,744
Alternative Uses
Best Use
Office B
$575.7K
$503.7K – $671.6K
NOI $40,297 @ 7.0% cap · market cap 8.78%
Second Best
Healthcare Medical
$479.4K
$419.5K – $559.3K
NOI $33,559 @ 7.0% cap · market cap 7.31%
Theoretical Best
Office A
$713.0K
$623.9K – $831.9K
NOI $49,913 @ 7.0% cap · market cap 10.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
759
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85006, AZ
23,797
Population
10,607
Households
2.2
Avg Household Size
34
Median Age
27%
College-Educated
78%
High-School Grad
4.0 sq mi
ZIP Area
5,949
Density / Sq Mi
$60,742
Median Household Income
$39,899
Median Earnings
$1,168
Median Rent
$376,600
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Multi-tenant office building near Phoenix Sky Harbor Airport.
Where is this medical office space located?
The property is located at 4801 E McDowell Rd Suite 255 Phoenix, AZ.
What is the asking price?
The asking price for this property is $459,030.
What are key features of this property?
This property features: ±21,884 SF, two‑story, multi‑tenant medical and professional office building.; Recently completed $1.5 million renovation in 2023, including new HVAC systems and a new roof.; Full building modernization completed in 2023.
