Tucson Distribution Center Near
For Sale
Contact for pricing
Pending
6700 S Pella Dr, Tucson, AZ 85746
Distribution center with immediate access to I-19 and major routes.
Property Size263,937 SF
Days on Market3289
Property Features for 6700 S Pella Dr
General Information
Standard status
Pending
Size
263,937 SF
Total Parking Spaces
521
Property subtype
Industrial
Zoning
I-1 (Light Industrial)
Lease Type
NNN
Building Details
Year Built
1989
Buildings
1
Tenancy
Multi
Listing Agency:
Cushman & Wakefield PICOR Commercial Real Estate Services - Tucson, Arizona
Listed By:
Stephen Cohen · License #AZ SA023071000
Source:
Crexi
Added: Aug 10, 2017
Changed: Aug 8
Last Checked: Aug 10 at 4:20AM
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 Cushman & Wakefield PICOR Commercial Real Estate Services - Tucson, Arizona
Investment Insights
Based on property information with market context.
This distribution center is located 0.9 miles from I-19, offering convenient access to the central business district, Tucson International Airport, and the population center. The property also benefits from its proximity to Valencia Road, a major 25-mile thoroughfare connecting to I-19, I-10, and Arizona State Route 86. The HomeGoods Distribution Center is within a one-day truck drive from the Ports of Long Beach and Los Angeles, San Diego, Las Vegas, Albuquerque, El Paso, and the Mariposa Point of Entry. The property has a size of 263937 square feet.
Key Highlights
- Immediate access to I‑19 for easy commuting.
- Located just 0.9 miles from I‑19.
- Easy access to Valencia Road, a major thoroughfare.
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
$2,169,340
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
6.85%
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%
$43,386,800
$43.4M
Cap Rate 7%
$30,990,571
$31.0M
Cap Rate 9%
$24,103,778
$24.1M
Market Conditions
NOI Build-Up for 263,937 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
$2.69M $10.20/SF
− Vacancy
−$140.0K −$0.53/SF
EGI
$2.55M $9.67/SF
− OpEx
−$382.8K −$1.45/SF
NOI
$2.17M $8.22/SF
Area
ZIP 85746
Vacancy
5.20%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
15.00%
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%
$43,386,800
Cap Rate 7%
$30,990,571
Cap Rate 9%
$24,103,778
Alternative Uses
Best Use
Warehouse
$30.99M
$27.12M – $36.16M
NOI $2,169,340 @ 7.0% cap · market cap 6.85%
Second Best
Industrial
$25.52M
$22.33M – $29.78M
NOI $1,786,516 @ 7.0% cap · market cap 5.64%
Theoretical Best
Office A
$67.55M
$59.11M – $78.81M
NOI $4,728,569 @ 7.0% cap · market cap 14.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
466
Businesses Nearby
Explore this area
Business Placement
Demographics for 85746, AZ
43,278
Population
16,345
Households
2.6
Avg Household Size
36
Median Age
18%
College-Educated
84%
High-School Grad
115.9 sq mi
ZIP Area
373
Density / Sq Mi
$68,506
Median Household Income
$35,838
Median Earnings
$1,280
Median Rent
$225,200
Median Home Value
Market
Vacancy Rate% for Industrial in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution center - Distribution center with immediate access to I-19 and major routes.
Where is this distribution center located?
The property is located at 6700 S Pella Dr Tucson, AZ.
What is the asking price?
The asking price for this property is $31,672,500.
What are key features of this property?
This property features: Immediate access to I‑19 for easy commuting.; Located just 0.9 miles from I‑19.; Easy access to Valencia Road, a major thoroughfare.
