Two-Suite Office
For Sale
$1,575,000
7255 E Tanque Verde Rd, Tucson, AZ 85715
Office property with separate entrances and infrastructure supporting a return to medical or dental use.
Property Size4,925 SF
Price / SF$319.80
Days on Market172
Property Features for 7255 E Tanque Verde Rd
General Information
Standard status
Active
Size
4,925 SF
Property subtype
Commercial
Additional Details
Office Units
2
Building Details
Year Built
1999
Buildings
1
Listing Agency:
Indie Realty
(520) 869-2376
Listed By:
Don Geisler
Source:
Seetucsonhouses
Added: Mar 13
Changed: Aug 29
Last Checked: Aug 30 at 6:11PM
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 Indie Realty
Investment Insights
Based on property information with market context.
Built in 1999, this 4,925-square-foot office building is arranged as two separate suites. The larger 3,725-square-foot suite includes 10 private offices, reception space, a meeting area, and a computer lab. The approximately 1,200-square-foot secondary suite has four offices, its own entrances, reception space, and a kitchen.
The property is currently configured for office use and retains infrastructure needed to convert back to medical or dental use. Its two-suite layout provides distinct spaces within one commercial building, with reception and office components in both suites.
The property is currently configured for office use and retains infrastructure needed to convert back to medical or dental use. Its two-suite layout provides distinct spaces within one commercial building, with reception and office components in both suites.
Key Highlights
- 4,925‑square‑foot office building built in 1999
- Two separate suites with distinct entrances
- Main suite includes 10 private offices, reception, meeting area, and computer lab
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
$71,966
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
4.57%
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%
$1,439,320
$1.4M
Cap Rate 7%
$1,028,086
$1.0M
Cap Rate 9%
$799,622
$799.6K
Market Conditions
NOI Build-Up for 4,925 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
$106.4K $21.60/SF
− Vacancy
−$10.4K −$2.12/SF
EGI
$96.0K $19.48/SF
− OpEx
−$24.0K −$4.87/SF
NOI
$72.0K $14.61/SF
Area
Tucson, AZ
Vacancy
9.80%
Lease Rate
$21.60 /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%
$1,439,320
Cap Rate 7%
$1,028,086
Cap Rate 9%
$799,622
Alternative Uses
Best Use
Office B
$1.03M
$899.6K – $1.20M
NOI $71,966 @ 7.0% cap · market cap 4.57%
Second Best
Healthcare Medical
$937.2K
$820.0K – $1.09M
NOI $65,601 @ 7.0% cap · market cap 4.17%
Theoretical Best
Office A
$1.28M
$1.12M – $1.49M
NOI $89,558 @ 7.0% cap · market cap 5.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
989
Businesses Nearby
Explore this area
Business Placement
Demographics for 85715, AZ
18,561
Population
9,678
Households
1.9
Avg Household Size
51
Median Age
47%
College-Educated
95%
High-School Grad
6.6 sq mi
ZIP Area
2,812
Density / Sq Mi
$82,651
Median Household Income
$48,259
Median Earnings
$1,368
Median Rent
$330,900
Median Home Value
Market
Vacancy Rate% for Office in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office property with separate entrances and infrastructure supporting a return to medical or dental use.
Where is this office building located?
The property is located at 7255 E Tanque Verde Rd Tucson, AZ.
What is the asking price?
The asking price for this property is $1,575,000.
What are key features of this property?
This property features: 4,925‑square‑foot office building built in 1999; Two separate suites with distinct entrances; Main suite includes 10 private offices, reception, meeting area, and computer lab
