Tenant-Occupied Office
For Sale
$980,000
7165 E University Dr Unit 171, Mesa, AZ 85207
Dual-sided layout includes reception areas, private offices, a kitchen, restrooms, and phone server equipment.
Property Size3,100 SF
Price / SF$316.13
Days on Market25
Property Features for 7165 E University Dr Unit 171
General Information
Standard status
Active
Size
3,100 SF
Additional Details
Cap Rate
7%
Building Details
Year Built
2005
Tenancy
Single
Listing Agency:
SLW Realty Group, LLC
(480) 518-3882
Listed By:
Sabrina Walters · License #BR022776000
Source:
Gileshometeamaz
Added: Aug 5
Changed: Aug 28
Last Checked: Aug 26 at 9:28AM
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.
Located at 7165 E University Dr Unit 171 in Mesa, Arizona, this 3,100-square-foot office building was constructed in 2005 and has a tenant in place. The property is organized into east and west office areas, each with its own reception space. The west side contains six offices and a kitchen, while the east side includes five offices and phone server equipment. Men's and women's bathrooms are positioned between the two sides.
The existing tenancy is associated with about a 7% cap rate. The configuration provides separate office areas within one building, with shared restroom facilities located centrally between them.
The existing tenancy is associated with about a 7% cap rate. The configuration provides separate office areas within one building, with shared restroom facilities located centrally between them.
Key Highlights
- Tenant in place with about a 7% cap rate
- 3,100‑square‑foot office building constructed in 2005
- West side includes reception, kitchen, and 6 offices
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
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 building - Dual-sided layout includes reception areas, private offices, a kitchen, restrooms, and phone server equipment.
Where is this office building located?
The property is located at 7165 E University Dr Unit 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: Tenant in place with about a 7% cap rate; 3,100‑square‑foot office building constructed in 2005; West side includes reception, kitchen, and 6 offices
