Two-Building Medical Office
For Sale
Contact for pricing
650 W Southern Ave, Mesa, AZ 85210
Medical office campus with controlled entry and a private garden courtyard.
Property Size11,250 SF
Price / SF$88.89
Days on Market179
Property Features for 650 W Southern Ave
General Information
Standard status
Active
Size
11,250 SF
Class
C
Property subtype
Office
Zoning
CO
Investment Type
Owner/User
Amenities
secured/gated access
garden courtyard
Building Details
Year Built
1982
Buildings
2
Stories
1
Listing Agency:
Keyser Commercial Real Estate
Listed By:
Ruth Darby · License #SA549117000
Source:
Crexi
Added: Mar 6
Changed: Aug 31
Last Checked: Aug 30 at 2:16AM
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 Keyser Commercial Real Estate
Investment Insights
Based on property information with market context.
This medical office property includes two buildings with a combined 11,250 square feet of space. Built in 1982, the campus is designed around medical office use and includes secured, gated access along with a garden courtyard. The property is zoned CO and is located at 650 W Southern Ave in Mesa, Arizona. Its two-building configuration provides a defined setting for an owner-user medical practice or related office operation.
Key Highlights
- Two medical office buildings totaling 11,250 SF
- Secured, gated property access
- Garden courtyard
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
$85,397
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
8.54%
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%
$1,707,940
$1.7M
Cap Rate 7%
$1,219,957
$1.2M
Cap Rate 9%
$948,856
$948.9K
Market Conditions
NOI Build-Up for 11,250 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
$152.6K $13.56/SF
− Vacancy
−$10.2K −$0.91/SF
EGI
$142.3K $12.65/SF
− OpEx
−$56.9K −$5.06/SF
NOI
$85.4K $7.59/SF
Area
Mesa, AZ
Vacancy
6.70%
Lease Rate
$13.56 /SF/Yr
Expense Ratio
40.00%
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%
$1,707,940
Cap Rate 7%
$1,219,957
Cap Rate 9%
$948,856
Alternative Uses
Best Use
Office B
$2.75M
$2.41M – $3.21M
NOI $192,770 @ 7.0% cap · market cap 19.28%
Second Best
Healthcare Medical
$1.22M
$1.07M – $1.42M
NOI $85,397 @ 7.0% cap · market cap 8.54%
Theoretical Best
Office A
$3.08M
$2.70M – $3.60M
NOI $215,860 @ 7.0% cap · market cap 21.59%
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
Under-served
Demand for This Use
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?
Medical Office Space - Medical office campus with controlled entry and a private garden courtyard.
Where is this medical office space located?
The property is located at 650 W Southern Ave Mesa, AZ.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Two medical office buildings totaling 11,250 SF; Secured, gated property access; Garden courtyard
