Multi-Office Suite with
For Sale
$980,000
7165 E University Drive 171, Mesa, AZ 85207
Office suite with dual reception areas, kitchen, and six offices plus shared restrooms.
Property Size3,100 SF
Price / SF$316.13
Days on Market332
Property Features for 7165 E University Drive 171
General Information
Standard status
Active
Size
3,100 SF
Property subtype
Commercial/Industrial
Additional Details
Cap Rate
7%
Office Units
11
Taxes and HOA fees
Annual Taxes
$3,659
Building Details
Year Built
2005
Tenancy
Single
Listing Agency:
SLW Realty Group, LLC
(480) 518-3882
Listed By:
Sabrina Walters · License #BR022776000
(480) 518-3882
Source:
Exitrealty
Added: Sep 19, 2025
Changed: Aug 8
Last Checked: Aug 15 at 6:58AM
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 SLW Realty Group, LLC
Investment Insights
Based on property information with market context.
This office suite is configured with reception, a kitchen, and six offices on the west side of the building. The east side includes a reception area and five offices, along with phone server equipment. Men’s and women’s bathrooms are located between the east and west sides, providing convenient access from both halves of the layout.
The property is part of a commercial office building and is offered for sale with a tenant already in place. Public remarks indicate the current occupancy is producing an estimated yield referenced as approximately a 7% cap rate.
For buyers or investors seeking a turnkey office setup, the internal layout supports a working office environment with multiple offices split across east and west zones and dedicated reception areas for managing visitors. The presence of phone server equipment may also be relevant for tenants looking for established communications infrastructure, while the kitchen and centrally located restrooms help accommodate daily operations.
The property is part of a commercial office building and is offered for sale with a tenant already in place. Public remarks indicate the current occupancy is producing an estimated yield referenced as approximately a 7% cap rate.
For buyers or investors seeking a turnkey office setup, the internal layout supports a working office environment with multiple offices split across east and west zones and dedicated reception areas for managing visitors. The presence of phone server equipment may also be relevant for tenants looking for established communications infrastructure, while the kitchen and centrally located restrooms help accommodate daily operations.
Key Highlights
- Office suite built in 2005
- Tenant in place with an estimated ~7% cap rate
- Dual reception areas with a kitchen
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
$40,260
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
4.11%
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%
$805,200
$805.2K
Cap Rate 7%
$575,143
$575.1K
Cap Rate 9%
$447,333
$447.3K
Market Conditions
NOI Build-Up for 3,100 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
$68.8K $22.20/SF
− Vacancy
−$15.1K −$4.88/SF
EGI
$53.7K $17.32/SF
− OpEx
−$13.4K −$4.33/SF
NOI
$40.3K $12.99/SF
Area
ZIP 85207
Vacancy
22.00%
Lease Rate
$22.20 /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%
$805,200
Cap Rate 7%
$575,143
Cap Rate 9%
$447,333
Alternative Uses
Best Use
Office B
$575.1K
$503.3K – $671.0K
NOI $40,260 @ 7.0% cap · market cap 4.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$779.6K
$682.2K – $909.5K
NOI $54,572 @ 7.0% cap · market cap 5.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
11
Office units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
563
Businesses Nearby
Explore this area
Business Placement
Demographics for 85207, AZ
50,108
Population
22,747
Households
2.2
Avg Household Size
45
Median Age
36%
College-Educated
92%
High-School Grad
29.4 sq mi
ZIP Area
1,704
Density / Sq Mi
$99,439
Median Household Income
$50,509
Median Earnings
$1,595
Median Rent
$460,800
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?
Office units - Office suite with dual reception areas, kitchen, and six offices plus shared restrooms.
Where is this office units located?
The property is located at 7165 E University Drive 171 Mesa, AZ.
What is the asking price?
The asking price for this property is $980,000.
What are key features of this property?
This property features: Office suite built in 2005; Tenant in place with an estimated ~7% cap rate; Dual reception areas with a kitchen
