Medical/Office Suite For
For Sale
Contact for pricing
522 E Southern Ave, Phoenix, AZ 85040
1,616 SF medical/office suite with functional layout.
Property Size1,616 SF
Price / SF$324.88
Days on Market154
Property Features for 522 E Southern Ave
General Information
Standard status
Active
Size
1,616 SF
Class
C
Property subtype
Office
Zoning
C-1
Building Details
Year Built
1930
Listing Agency:
The Menlo Group Commercial Real Estate LLC
(480) 771-1376
Listed By:
Stuart Milne · License #AZ SA634760000
Source:
Crexi
Added: Mar 24
Changed: Aug 8
Last Checked: Aug 23 at 2:57PM
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 approximately 1,616 square foot suite is suitable for medical, dental, or professional office use. The functional layout includes a waiting room, reception area, two operatories, a private office, and a restroom. The property is located at the southeast corner of Southern Avenue and South 7th Street, benefiting from high traffic counts. It is situated in close proximity to numerous retail and residential areas.
Key Highlights
- Functional 1,616 SF medical/office suite layout.
- Suitable for medical, dental, or professional office use.
- High traffic location at the SEC of Southern Ave and S 7th St.
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
$27,664
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
5.27%
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%
$553,280
$553.3K
Cap Rate 7%
$395,200
$395.2K
Cap Rate 9%
$307,378
$307.4K
Market Conditions
NOI Build-Up for 1,616 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
$49.6K $30.72/SF
− Vacancy
−$12.8K −$7.90/SF
EGI
$36.9K $22.82/SF
− OpEx
−$9.2K −$5.71/SF
NOI
$27.7K $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%
$553,280
Cap Rate 7%
$395,200
Cap Rate 9%
$307,378
Alternative Uses
Best Use
Office B
$395.2K
$345.8K – $461.1K
NOI $27,664 @ 7.0% cap · market cap 5.27%
Second Best
Healthcare Medical
$329.1K
$288.0K – $384.0K
NOI $23,038 @ 7.0% cap · market cap 4.39%
Theoretical Best
Office A
$489.5K
$428.3K – $571.1K
NOI $34,265 @ 7.0% cap · market cap 6.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
630
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85040, AZ
33,993
Population
11,962
Households
2.8
Avg Household Size
30
Median Age
15%
College-Educated
69%
High-School Grad
10.1 sq mi
ZIP Area
3,366
Density / Sq Mi
$57,890
Median Household Income
$36,355
Median Earnings
$1,193
Median Rent
$294,800
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 - 1,616 SF medical/office suite with functional layout.
Where is this medical office space located?
The property is located at 522 E Southern Ave Phoenix, AZ.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Functional 1,616 SF medical/office suite layout.; Suitable for medical, dental, or professional office use.; High traffic location at the SEC of Southern Ave and S 7th St.
