Mesa Commercial Building Near
For Sale
Contact for pricing
Pending
550 N Center Street, Mesa, AZ 85201
Renovated 1400 SQFT building on 6800 SQFT lot for sale.
Property Size1,400 SF
Lot Size0.16 Acres
Days on Market1214
Property Features for 550 N Center Street
General Information
Standard status
Pending
Size
1,400 SF
Class
B
Lot size
0.16 Acres
Property subtype
Office
Zoning
MF
Building Details
Year Built
1947
Buildings
1
Stories
1
Listing Agency:
Coldwell Banker Commercial Realty
Listed By:
Cathy Fox · License #WI 56947-90
Source:
Crexi
Added: Apr 27, 2023
Changed: Aug 20
Last Checked: Aug 21 at 9:09PM
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 Coldwell Banker Commercial Realty
Investment Insights
Based on property information with market context.
This commercial building in Mesa, situated near the 202 in Metro Phoenix, presents an opportunity for various investment strategies, from immediate income to long-term development. The 1400 SQFT building, located on a 6800 SQFT lot, underwent a complete renovation in 2016. The building incorporates energy-efficient lighting and windows, a 200-amp box, vaulted ceilings, concrete floors, and central heat and air. Zoned RM, the property allows for Business and Professional use with a Special Use Permit for uses up to 2000 SQFT.
Key Highlights
- Prime commercial location in Mesa near the 202 in Metro Phoenix
- Recently appraised at $410,000
- Flexible RM zoning allows for Business and Professional use
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
$18,881
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
4.29%
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%
$377,620
$377.6K
Cap Rate 7%
$269,729
$269.7K
Cap Rate 9%
$209,789
$209.8K
Market Conditions
NOI Build-Up for 1,400 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
$31.1K $22.20/SF
− Vacancy
−$5.9K −$4.22/SF
EGI
$25.2K $17.98/SF
− OpEx
−$6.3K −$4.50/SF
NOI
$18.9K $13.49/SF
Area
ZIP 85201
Vacancy
19.00%
Lease Rate
$22.20 /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%
$377,620
Cap Rate 7%
$269,729
Cap Rate 9%
$209,789
Alternative Uses
Best Use
Office B
$269.7K
$236.0K – $314.7K
NOI $18,881 @ 7.0% cap · market cap 4.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$362.9K
$317.5K – $423.4K
NOI $25,402 @ 7.0% cap · market cap 5.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,352
Businesses Nearby
Explore this area
Business Placement
Demographics for 85201, AZ
51,187
Population
23,099
Households
2.2
Avg Household Size
33
Median Age
27%
College-Educated
87%
High-School Grad
9.4 sq mi
ZIP Area
5,445
Density / Sq Mi
$63,725
Median Household Income
$40,067
Median Earnings
$1,349
Median Rent
$292,600
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?
Office building - Renovated 1400 SQFT building on 6800 SQFT lot for sale.
Where is this office building located?
The property is located at 550 N Center Street Mesa, AZ.
What is the asking price?
The asking price for this property is $440,000.
What are key features of this property?
This property features: Prime commercial location in Mesa near the 202 in Metro Phoenix; Recently appraised at $410,000; Flexible RM zoning allows for Business and Professional use
