Chandler Medical Office
For Sale
$2,621,464
604 W Warner Rd Bldg D, Chandler, AZ 85225
NNN property with leased suites and income potential.
Property Size7,816 SF
Price / SF$335.40
Days on Market256
Property Features for 604 W Warner Rd Bldg D
General Information
Standard status
Active
Size
7,816 SF
Class
B
Property subtype
Office
Building Details
Building Size
7,816 SF
Year Built
1987
Listing Agency:
Commercial Properties Inc
(602) 315-7131
Listed By:
Tyson Breinholt · License #BR517298000
(602) 315-7131
Source:
Corfac
Added: Nov 25, 2025
Changed: Aug 8
Last Checked: Aug 8 at 5:19AM
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 Commercial Properties Inc
Investment Insights
Based on property information with market context.
Located in East Chandler, the property at 604 W Warner Rd, Building D, is a 7,816 square foot office building constructed in 1987. The property is being offered as an investment opportunity. The building features three medical office suites. Suites 1 and 2 are fully leased, totaling 3,972 square feet, and generate $89,370 in annual income, which equates to $22.50 per square foot. These suites have 3% annual increases through March 31, 2029. Suite 3 is a vacant 3,843 square foot space that offers potential for additional income and tenant customization or for an owner-user. The location provides access to dining, retail centers, and recreational facilities, including Chandler Fashion Center, Snedigar Recreation Center, and Downtown Chandler. The property has a versatile layout to accommodate diverse office setups and convenient access to major transportation routes. The property is located in a city known for its population growth, high median household income, and healthcare demand. The current capitalization rate is 6.25%.
Key Highlights
- High‑yield investment opportunity with a 6.25% cap rate.
- Two of the three suites are fully leased, generating $89,370 in annual income with built‑in 3% annual increases through 3/31/2029.
- Vacant suite (3,843 SF) offers significant upside potential.
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
$123,033
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
4.69%
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%
$2,460,660
$2.5M
Cap Rate 7%
$1,757,614
$1.8M
Cap Rate 9%
$1,367,033
$1.4M
Market Conditions
NOI Build-Up for 7,816 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
$203.5K $26.04/SF
− Vacancy
−$39.5K −$5.05/SF
EGI
$164.0K $20.99/SF
− OpEx
−$41.0K −$5.25/SF
NOI
$123.0K $15.74/SF
Area
Chandler, AZ
Vacancy
19.40%
Lease Rate
$26.04 /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%
$2,460,660
Cap Rate 7%
$1,757,614
Cap Rate 9%
$1,367,033
Alternative Uses
Best Use
Office B
$1.76M
$1.54M – $2.05M
NOI $123,033 @ 7.0% cap · market cap 4.69%
Second Best
Healthcare Medical
$1.43M
$1.25M – $1.67M
NOI $100,170 @ 7.0% cap · market cap 3.82%
Theoretical Best
Office A
$2.24M
$1.96M – $2.61M
NOI $156,820 @ 7.0% cap · market cap 5.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,018
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 85225, AZ
73,551
Population
28,930
Households
2.5
Avg Household Size
35
Median Age
33%
College-Educated
88%
High-School Grad
12.7 sq mi
ZIP Area
5,791
Density / Sq Mi
$86,036
Median Household Income
$45,692
Median Earnings
$1,662
Median Rent
$386,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Arizona Avenue Animal Clinic — 7 W Knox Rd, Chandler, AZ 85225
- 1st Pet Veterinary Centers - Chandler — 1233 W Warner Rd, Chandler, AZ 85224
- Andrei Tarassov — 1233 W Warner Rd, Chandler, AZ 852242771
- Gardetto Mike L DVM — 7 W Knox Rd, Chandler, AZ 85225
- Dr. John Gardetto — 7 W Knox Rd, Chandler, AZ 85225
Frequently Asked Questions
What type of property is this?
Medical Office Space - NNN property with leased suites and income potential.
Where is this medical office space located?
The property is located at 604 W Warner Rd Bldg D Chandler, AZ.
What is the asking price?
The asking price for this property is $2,621,464.
What are key features of this property?
This property features: High‑yield investment opportunity with a **6.25% cap rate**.; Two of the three suites are fully leased, generating **$89,370 in annual income** with built‑in 3% annual increases through 3/31/2029.; Vacant suite (3,843 SF) offers significant upside potential.
