Medical Office Building with Flexible
For Sale
$4,500,000
6739 W Cactus Road, Peoria, AZ 85381
Large C-2 office building offers built-out medical office space plus an additional shell-ready suite option.
Property Size15,187 SF
Price / SF$296.31
Days on Market54
Property Features for 6739 W Cactus Road
General Information
Standard status
Active
Size
15,187 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$32,430
Building Details
Year Built
2000
Listing Agency:
Realty ONE Group
(480) 321-8100
Listed By:
Lindsay A Mozena · License #SA658766000
(480) 266-7656
Source:
Exitrealty
Added: Jul 14
Changed: Sep 1
Last Checked: Sep 4 at 10:53AM
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 Realty ONE Group
Investment Insights
Based on property information with market context.
This C-2 zoned commercial office building is located on the southwest corner of a high-traffic intersection. The larger 10,000 SF side is currently built out with several offices, a large open workspace, conference rooms, and restrooms. The entire building has new HVAC units.
A smaller 5,000 SF space is prepped in shell condition and is ready for the next occupant. The property can be purchased as a whole, and it is also available for lease as either a full building or split into the 10,000 SF and 5,000 SF spaces. A floor plan is available upon request.
A smaller 5,000 SF space is prepped in shell condition and is ready for the next occupant. The property can be purchased as a whole, and it is also available for lease as either a full building or split into the 10,000 SF and 5,000 SF spaces. A floor plan is available upon request.
Key Highlights
- Large commercial property built in 2000 at the SW corner of a high‑traffic intersection
- C‑2 zoning; previously used as a telemedicine office
- 10,000 SF built‑out suite with multiple offices, large open workspace, conference rooms, and restrooms
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
$227,885
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
5.06%
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%
$4,557,700
$4.6M
Cap Rate 7%
$3,255,500
$3.3M
Cap Rate 9%
$2,532,056
$2.5M
Market Conditions
NOI Build-Up for 15,187 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
$355.4K $23.40/SF
− Vacancy
−$51.5K −$3.39/SF
EGI
$303.8K $20.01/SF
− OpEx
−$76.0K −$5.00/SF
NOI
$227.9K $15.01/SF
Area
Peoria, AZ
Vacancy
14.50%
Lease Rate
$23.40 /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%
$4,557,700
Cap Rate 7%
$3,255,500
Cap Rate 9%
$2,532,056
Alternative Uses
Best Use
Office B
$3.26M
$2.85M – $3.80M
NOI $227,885 @ 7.0% cap · market cap 5.06%
Second Best
Healthcare Medical
$2.97M
$2.60M – $3.46M
NOI $207,813 @ 7.0% cap · market cap 4.62%
Theoretical Best
Office A
$3.74M
$3.27M – $4.36M
NOI $261,739 @ 7.0% cap · market cap 5.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
263
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85381, AZ
27,008
Population
11,393
Households
2.4
Avg Household Size
40
Median Age
34%
College-Educated
95%
High-School Grad
6.7 sq mi
ZIP Area
4,031
Density / Sq Mi
$94,442
Median Household Income
$49,458
Median Earnings
$1,726
Median Rent
$407,900
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.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Large C-2 office building offers built-out medical office space plus an additional shell-ready suite option.
Where is this medical office space located?
The property is located at 6739 W Cactus Road Peoria, AZ.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Large commercial property built in 2000 at the SW corner of a high‑traffic intersection; C‑2 zoning; previously used as a telemedicine office; 10,000 SF built‑out suite with multiple offices, large open workspace, conference rooms, and restrooms
