Office Building with Absolute NNN
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For Sale
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7098 E Cochise Rd, Paradise Valley, AZ 85253
Fully occupied office property with an absolute NNN lease and tenant responsibility for operating expenses.
Property Size22,910 SF
Price / SF$313.94
Days on Market4
Property Features for 7098 E Cochise Rd
General Information
Standard status
Active
Size
22,910 SF
Net Rentable
19,908 SF
Property subtype
OFFICE
Occupancy
100%
Building Details
Buildings
1
Building Size
22,910 SF
Tenancy
Single
Owner Occupied
No
Listing Agency:
Lee & Associates | Phoenix
(602) 956-7777
Listed By:
Marcus Muirhead
(480) 236-6555
Source:
Moodyscre
Added: Sep 10
Changed: Sep 12
Last Checked: Sep 12 at 2:24PM
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 Lee & Associates | Phoenix
Investment Insights
Based on property information with market context.
The office building contains 22,910 SF of gross area, including 19,908 SF of rentable above-grade space and a 3,002 SF unfinished basement that is excluded from the rentable area. The property is currently fully occupied and offers a defined transition path for an owner-user.
The absolute NNN lease places responsibility for all operating expenses with the tenant, including HVAC, roof, and parking lot capital items. The initial lease term runs from 3/7/2018 through 3/31/2028. The property is located at 7098 E Cochise Rd in Paradise Valley, Arizona.
The absolute NNN lease places responsibility for all operating expenses with the tenant, including HVAC, roof, and parking lot capital items. The initial lease term runs from 3/7/2018 through 3/31/2028. The property is located at 7098 E Cochise Rd in Paradise Valley, Arizona.
Key Highlights
- 22,910 SF gross building area
- 19,908 SF rentable above‑grade space
- 3,002 SF unfinished basement excluded from rentable area
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
$345,408
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
5.53%
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%
$6,908,160
$6.9M
Cap Rate 7%
$4,934,400
$4.9M
Cap Rate 9%
$3,837,867
$3.8M
Market Conditions
NOI Build-Up for 19,908 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
$609.2K $30.60/SF
− Vacancy
−$148.6K −$7.47/SF
EGI
$460.5K $23.13/SF
− OpEx
−$115.1K −$5.78/SF
NOI
$345.4K $17.35/SF
Area
Maricopa County, AZ
Vacancy
24.40%
Lease Rate
$30.60 /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%
$6,908,160
Cap Rate 7%
$4,934,400
Cap Rate 9%
$3,837,867
Alternative Uses
Best Use
Office B
$4.93M
$4.32M – $5.76M
NOI $345,408 @ 7.0% cap · market cap 5.53%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.16M
$5.39M – $7.18M
NOI $431,066 @ 7.0% cap · market cap 6.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,324
Businesses Nearby
Explore this area
Business Placement
Demographics for 85253, AZ
17,358
Population
8,815
Households
2
Avg Household Size
53
Median Age
71%
College-Educated
98%
High-School Grad
18.1 sq mi
ZIP Area
959
Density / Sq Mi
$182,150
Median Household Income
$79,848
Median Earnings
$1,935
Median Rent
$2,000,001
Median Home Value
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Fully occupied office property with an absolute NNN lease and tenant responsibility for operating expenses.
Where is this office building located?
The property is located at 7098 E Cochise Rd Paradise Valley, AZ.
What is the asking price?
The asking price for this property is $6,250,000.
What are key features of this property?
This property features: 22,910 SF gross building area; 19,908 SF rentable above‑grade space; 3,002 SF unfinished basement excluded from rentable area
