Mesa Medical Office
For Sale
Contact for pricing
5416 E Southern Ave, Mesa, AZ 85206
Meticulously maintained medical office condo near major healthcare facilities.
Property Size3,273 SF
Price / SF$394.13
Days on Market90
Property Features for 5416 E Southern Ave
General Information
Standard status
Active
Size
3,273 SF
Total Parking Spaces
3
Property subtype
Office
Zoning
OC
Lease Type
NNN
Investment Type
Owner/User
Building Details
Year Built
2003
Year Renovated
2022
Units
1
Tenancy
Single
Listing Agency:
XCD Realty & Property Management
(602) 253-0113
Listed By:
Samir Sawhney · License #BR645393000
Source:
Crexi
Added: May 11
Changed: Aug 8
Last Checked: Aug 8 at 3:45PM
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 XCD Realty & Property Management
Investment Insights
Based on property information with market context.
This meticulously maintained medical office condo is located at 5416 E Southern Ave in Mesa, Arizona. The property is strategically positioned in close proximity to major healthcare facilities, including the US 60, Loop 202 Banner Gateway Medical Center (185 beds), and MD Anderson Cancer Center (77 beds). The property contains 3,273 square feet. The surrounding area offers numerous retail amenities and dining options, such as RA Sushi Bar Restaurant, Venezia’s New York Style Pizza, Buffalo Wild Wings, and Black Angus Steakhouse.
Key Highlights
- Meticulously maintained medical office condo.
- Strategic location near US 60 and Loop 202.
- Close proximity to Banner Gateway Medical Center (185 beds).
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
$56,083
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
4.35%
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%
$1,121,660
$1.1M
Cap Rate 7%
$801,186
$801.2K
Cap Rate 9%
$623,144
$623.1K
Market Conditions
NOI Build-Up for 3,273 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
$94.7K $28.92/SF
− Vacancy
−$19.9K −$6.07/SF
EGI
$74.8K $22.85/SF
− OpEx
−$18.7K −$5.71/SF
NOI
$56.1K $17.14/SF
Area
Mesa, AZ
Vacancy
21.00%
Lease Rate
$28.92 /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%
$1,121,660
Cap Rate 7%
$801,186
Cap Rate 9%
$623,144
Alternative Uses
Best Use
Office B
$801.2K
$701.0K – $934.7K
NOI $56,083 @ 7.0% cap · market cap 4.35%
Second Best
Healthcare Medical
$354.9K
$310.6K – $414.1K
NOI $24,845 @ 7.0% cap · market cap 1.93%
Theoretical Best
Office A
$897.2K
$785.0K – $1.05M
NOI $62,801 @ 7.0% cap · market cap 4.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
709
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85206, AZ
36,713
Population
19,078
Households
1.9
Avg Household Size
48
Median Age
34%
College-Educated
92%
High-School Grad
9.4 sq mi
ZIP Area
3,906
Density / Sq Mi
$69,986
Median Household Income
$45,422
Median Earnings
$1,717
Median Rent
$322,600
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?
Medical Office Space - Meticulously maintained medical office condo near major healthcare facilities.
Where is this medical office space located?
The property is located at 5416 E Southern Ave Mesa, AZ.
What is the asking price?
The asking price for this property is $1,290,000.
What are key features of this property?
This property features: Meticulously maintained medical office condo.; Strategic location near US 60 and Loop 202.; Close proximity to Banner Gateway Medical Center (185 beds).
