Office Building with True NNN
For Sale
$1,399,000
625 W SOUTHERN Avenue, Mesa, AZ 85210
Office property zoned OC with a true NNN lease and 3% annual rent increases.
Property Size5,167 SF
Price / SF$270.76
Days on Market173
Property Features for 625 W SOUTHERN Avenue
General Information
Standard status
Active
Size
5,167 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$7,746
Building Details
Year Built
1973
Listing Agency:
American Realty Brokers
(602) 955-6606
Listed By:
Robert Joseph Kapelke · License #SA516215000
(602) 777-0456
Source:
Exitrealty
Added: Mar 17
Changed: Sep 4
Last Checked: Aug 25 at 8:53AM
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 American Realty Brokers
Investment Insights
Based on property information with market context.
This office property is offered as a true NNN lease investment. The current lease includes a 3% annual rent increase and offers (2) optional 5-year extensions, each at a market rent rate determined at the time of renewal. The current tenant also acts as the property manager.
The property has excellent frontage to Southern Ave and is zoned OC, supporting a range of office-oriented uses as determined by the local code.
If you are an owner-operator seeking to occupy the building, the tenant is willing to terminate the lease and relocate, subject to the terms of the agreement and relocation logistics.
The property has excellent frontage to Southern Ave and is zoned OC, supporting a range of office-oriented uses as determined by the local code.
If you are an owner-operator seeking to occupy the building, the tenant is willing to terminate the lease and relocate, subject to the terms of the agreement and relocation logistics.
Key Highlights
- 1973‑built office property zoned OC with a true NNN lease
- Current CAP rate listed at 5.95%
- Lease includes 3% annual rent increases
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
$88,537
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
6.33%
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%
$1,770,740
$1.8M
Cap Rate 7%
$1,264,814
$1.3M
Cap Rate 9%
$983,744
$983.7K
Market Conditions
NOI Build-Up for 5,167 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
$149.4K $28.92/SF
− Vacancy
−$31.4K −$6.07/SF
EGI
$118.0K $22.85/SF
− OpEx
−$29.5K −$5.71/SF
NOI
$88.5K $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%
$1,770,740
Cap Rate 7%
$1,264,814
Cap Rate 9%
$983,744
Alternative Uses
Best Use
Office B
$1.26M
$1.11M – $1.48M
NOI $88,537 @ 7.0% cap · market cap 6.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.42M
$1.24M – $1.65M
NOI $99,142 @ 7.0% cap · market cap 7.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,288
Businesses Nearby
Explore this area
Business Placement
Demographics for 85210, AZ
40,351
Population
16,292
Households
2.5
Avg Household Size
32
Median Age
25%
College-Educated
84%
High-School Grad
6.7 sq mi
ZIP Area
6,023
Density / Sq Mi
$59,680
Median Household Income
$38,479
Median Earnings
$1,383
Median Rent
$301,600
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?
NNN property - Office property zoned OC with a true NNN lease and 3% annual rent increases.
Where is this nnn property located?
The property is located at 625 W SOUTHERN Avenue Mesa, AZ.
What is the asking price?
The asking price for this property is $1,399,000.
What are key features of this property?
This property features: 1973‑built office property zoned OC with a true NNN lease; Current CAP rate listed at 5.95%; Lease includes 3% annual rent increases
