60-Key Interior-Corridor
For Sale
Contact for pricing
621 West Commerce Drive, Benson, AZ 85602
Vacant commercial lodging property with potential for hotel conversion, extended stay, or housing-related reuse.
Property Size28,583 SF
Price / SF$62.97
Days on Market110
Property Features for 621 West Commerce Drive
General Information
Standard status
Active
Size
28,583 SF
Property subtype
Hospitality
Zoning
Commercial
Additional Details
Highway Access
Yes
Building Details
Year Built
1997
Year Renovated
2020
Listing Agency:
NewGen Advisory
(520) 664-4091
Listed By:
Ryan J. Bodine · License #AZ
Source:
Crexi
Added: May 13
Changed: Aug 30
Last Checked: Aug 30 at 12:18PM
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 NewGen Advisory
Investment Insights
Based on property information with market context.
The property is a 28,583-square-foot hotel asset built in 1997 and delivered vacant. Its interior-corridor configuration and 60-key layout provide the existing framework for continued lodging use, including economy hotel or extended-stay operations. The asset was formerly operated as a Days Inn.
Zoned Commercial, the property is located at 621 West Commerce Drive in Benson, Arizona, along the I-10 corridor. The source information identifies additional reuse concepts including workforce housing, transitional housing, affordable housing, nonprofit or supportive housing, and government-contracted lodging.
Zoned Commercial, the property is located at 621 West Commerce Drive in Benson, Arizona, along the I-10 corridor. The source information identifies additional reuse concepts including workforce housing, transitional housing, affordable housing, nonprofit or supportive housing, and government-contracted lodging.
Key Highlights
- 60‑key hotel asset delivered vacant
- 28,583‑square‑foot building constructed in 1997
- Interior‑corridor layout
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
$146,142
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
8.12%
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%
$2,922,840
$2.9M
Cap Rate 7%
$2,087,743
$2.1M
Cap Rate 9%
$1,623,800
$1.6M
Market Conditions
NOI Build-Up for 28,583 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
$394.4K $13.80/SF
− Vacancy
−$86.8K −$3.04/SF
EGI
$307.7K $10.76/SF
− OpEx
−$161.5K −$5.65/SF
NOI
$146.1K $5.11/SF
Area
Cochise County, AZ
Vacancy
22.00%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
52.50%
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%
$2,922,840
Cap Rate 7%
$2,087,743
Cap Rate 9%
$1,623,800
Alternative Uses
Best Use
Hotel Hospitality
$2.09M
$1.83M – $2.44M
NOI $146,142 @ 7.0% cap · market cap 8.12%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.24M
$3.71M – $4.94M
NOI $296,477 @ 7.0% cap · market cap 16.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
51
Businesses Nearby
Explore this area
Business Placement
Demographics for 85602, AZ
10,198
Population
5,386
Households
1.9
Avg Household Size
54
Median Age
26%
College-Educated
91%
High-School Grad
847.5 sq mi
ZIP Area
12
Density / Sq Mi
$53,725
Median Household Income
$32,471
Median Earnings
$760
Median Rent
$195,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Vacant commercial lodging property with potential for hotel conversion, extended stay, or housing-related reuse.
Where is this hotel located?
The property is located at 621 West Commerce Drive Benson, AZ.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: 60‑key hotel asset delivered vacant; 28,583‑square‑foot building constructed in 1997; Interior‑corridor layout
