Multi-Tenant Medical Office
For Sale
$3,600,000
740 East Highland Avenue, Phoenix, AZ 85014
Available office or medical suite within a facility occupied by three medical tenants.
Property Size18,678 SF
Price / SF$192.74
Days on Market196
Property Features for 740 East Highland Avenue
General Information
Standard status
Active
Size
18,678 SF
Class
C
Property subtype
Medical/Healthcare
Building Details
Building Size
18,678 SF
Buildings
1
Tenancy
Multi
Properties For Sale
at 740 East Highland Avenue Contact us- Size
- 2,460 SF
- Lease Type
- NNN
Suite 201
Listing Agency:
Menlo Group Commercial Real Estate
(480) 659-1777
Listed By:
Stuart Milne · License #SA634760000
(480) 659-1777
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 1:16PM
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 Menlo Group Commercial Real Estate
Investment Insights
Based on property information with market context.
This multi-tenant medical office property in Phoenix encompasses 18,678 square feet and includes three medical tenants already in place. The building also offers an approximately 2,460-square-foot vacant suite that can accommodate office or medical use, creating an owner/user component within the larger facility.
Located at 740 East Highland Avenue, the property provides an established medical-office setting in Phoenix, Arizona. The available suite is offered under an NNN lease structure, while the overall property is presented for sale.
Located at 740 East Highland Avenue, the property provides an established medical-office setting in Phoenix, Arizona. The available suite is offered under an NNN lease structure, while the overall property is presented for sale.
Key Highlights
- 18,678‑square‑foot multi‑tenant medical office building
- Three medical tenants currently in place
- Approximately 2,460‑square‑foot vacant office/medical suite
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
$319,743
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
8.88%
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%
$6,394,860
$6.4M
Cap Rate 7%
$4,567,757
$4.6M
Cap Rate 9%
$3,552,700
$3.6M
Market Conditions
NOI Build-Up for 18,678 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
$573.8K $30.72/SF
− Vacancy
−$147.5K −$7.90/SF
EGI
$426.3K $22.82/SF
− OpEx
−$106.6K −$5.71/SF
NOI
$319.7K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /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%
$6,394,860
Cap Rate 7%
$4,567,757
Cap Rate 9%
$3,552,700
Alternative Uses
Best Use
Office B
$4.57M
$4.00M – $5.33M
NOI $319,743 @ 7.0% cap · market cap 8.88%
Second Best
Healthcare Medical
$3.80M
$3.33M – $4.44M
NOI $266,274 @ 7.0% cap · market cap 7.40%
Theoretical Best
Office A
$5.66M
$4.95M – $6.60M
NOI $396,041 @ 7.0% cap · market cap 11.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,906
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85014, AZ
26,381
Population
14,778
Households
1.8
Avg Household Size
37
Median Age
43%
College-Educated
90%
High-School Grad
4.0 sq mi
ZIP Area
6,595
Density / Sq Mi
$69,995
Median Household Income
$48,465
Median Earnings
$1,339
Median Rent
$447,500
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Camelback Animal Clinic — 1025 E Camelback Rd, Phoenix, AZ 85014
- Ivms — 48 e oregon ave, phoenix, az 85012
Frequently Asked Questions
What type of property is this?
Medical Office Space - Available office or medical suite within a facility occupied by three medical tenants.
Where is this medical office space located?
The property is located at 740 East Highland Avenue Phoenix, AZ.
What is the asking price?
The asking price for this property is $3,600,000.
What are key features of this property?
This property features: 18,678‑square‑foot multi‑tenant medical office building; Three medical tenants currently in place; Approximately 2,460‑square‑foot vacant office/medical suite
