Mesa Office Building
For Sale
$1,750,000
555 W University Dr, Mesa, AZ 85201
6,402 SF office building with 10 units for sale.
Property Size6,402 SF
Price / SF$273.35
Days on Market165
Property Features for 555 W University Dr
General Information
Standard status
Active
Size
6,402 SF
Class
B
Property subtype
Office
Building Details
Building Size
6,402 SF
Listing Agency:
Menlo Group Commercial Real Estate
(480) 236-9511
Listed By:
Stuart Milne, SIOR | CCIM · License #SA634760000
(480) 236-9511
Source:
Menlocre
Added: Mar 16
Changed: Aug 26
Last Checked: Aug 26 at 5:28AM
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 Menlo Group Commercial Real Estate
Investment Insights
Based on property information with market context.
Located at 555 W University Dr in Mesa, AZ, this 6,402 SF office building offers a prime investment opportunity. The single-story, free-standing building, constructed in 1985 with a wood frame and tile roof, features 10 multi-tenant, built-out office suites. The property is situated along West University Drive in central Mesa, just east of downtown, with frontage on University Avenue, west of Country Club Drive. It offers immediate access to SR 87 and is in close proximity to restaurants, retail, and service amenities. The location is also within a downtown Mesa "Opportunity Zone". Leases are month to month. The property includes great monument signage on University Avenue. This property is suitable for a wide range of office or commercial uses and presents a perfect owner/user opportunity.
Key Highlights
- Prime investment opportunity in a thriving Mesa location.
- 6,402 SF office building with 10 units.
- Located in a designated "Opportunity Zone" in downtown Mesa.
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
$86,341
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
4.93%
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%
$1,726,820
$1.7M
Cap Rate 7%
$1,233,443
$1.2M
Cap Rate 9%
$959,344
$959.3K
Market Conditions
NOI Build-Up for 6,402 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
$142.1K $22.20/SF
− Vacancy
−$27.0K −$4.22/SF
EGI
$115.1K $17.98/SF
− OpEx
−$28.8K −$4.50/SF
NOI
$86.3K $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%
$1,726,820
Cap Rate 7%
$1,233,443
Cap Rate 9%
$959,344
Alternative Uses
Best Use
Office B
$1.23M
$1.08M – $1.44M
NOI $86,341 @ 7.0% cap · market cap 4.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.66M
$1.45M – $1.94M
NOI $116,158 @ 7.0% cap · market cap 6.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,644
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 - 6,402 SF office building with 10 units for sale.
Where is this office building located?
The property is located at 555 W University Dr Mesa, AZ.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Prime investment opportunity in a thriving Mesa location.; 6,402 SF office building with 10 units.; Located in a designated "Opportunity Zone" in downtown Mesa.
