Multi-Tenant Office
For Sale
$1,895,000
8040 E Indian School Rd, Scottsdale, AZ 85251
Dental, medical, and retail uses occupy a multi-tenant commercial building with recent capital improvements.
Property Size5,718 SF
Days on Market92
Property Features for 8040 E Indian School Rd
General Information
Standard status
Active
Size
5,718 SF
Class
B
Property subtype
Office
Net Operating Income
$20,539
Building Details
Building Size
5,718 SF
Year Built
2005
Tenancy
Multi
Parking Ratio
7 per 1,000 SF
Listing Agency:
Commercial Properties Inc.
(602) 561-1339
Listed By:
Matt Zaccardi · License #SA584155000
(602) 561-1339
Source:
Cpiaz
Added: Jun 2
Changed: Aug 31
Last Checked: Sep 1 at 6:00PM
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 Commercial Properties Inc.
Investment Insights
Based on property information with market context.
Built in 2005, this multi-tenant office building accommodates dental, medical, and retail uses. The property includes suites 101, 105, and 110 at 8040 E Indian School Rd in Scottsdale, Arizona.
Recent building improvements have been completed, and parking is provided at a ratio of 7.00 spaces per 1,000 square feet.
Recent building improvements have been completed, and parking is provided at a ratio of 7.00 spaces per 1,000 square feet.
Key Highlights
- Multi‑tenant building serving dental, medical, and retail uses
- Suites 101, 105, and 110 included
- Built in 2005
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
$90,526
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
4.78%
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%
$1,810,520
$1.8M
Cap Rate 7%
$1,293,229
$1.3M
Cap Rate 9%
$1,005,844
$1.0M
Market Conditions
NOI Build-Up for 5,718 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
$146.8K $25.68/SF
− Vacancy
−$26.1K −$4.57/SF
EGI
$120.7K $21.11/SF
− OpEx
−$30.2K −$5.28/SF
NOI
$90.5K $15.83/SF
Area
Scottsdale, AZ
Vacancy
17.80%
Lease Rate
$25.68 /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%
$1,810,520
Cap Rate 7%
$1,293,229
Cap Rate 9%
$1,005,844
Alternative Uses
Best Use
Office B
$1.29M
$1.13M – $1.51M
NOI $90,526 @ 7.0% cap · market cap 4.78%
Second Best
Healthcare Medical
$1.16M
$1.02M – $1.36M
NOI $81,516 @ 7.0% cap · market cap 4.30%
Theoretical Best
Retail
$1.88M
$1.64M – $2.19M
NOI $131,394 @ 7.0% cap · market cap 6.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,345
Businesses Nearby
Explore this area
Business Placement
Demographics for 85251, AZ
40,073
Population
26,456
Households
1.5
Avg Household Size
39
Median Age
60%
College-Educated
96%
High-School Grad
7.2 sq mi
ZIP Area
5,566
Density / Sq Mi
$89,151
Median Household Income
$60,282
Median Earnings
$1,771
Median Rent
$500,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Dental, medical, and retail uses occupy a multi-tenant commercial building with recent capital improvements.
Where is this office building located?
The property is located at 8040 E Indian School Rd Scottsdale, AZ.
What is the asking price?
The asking price for this property is $1,895,000.
What are key features of this property?
This property features: Multi‑tenant building serving dental, medical, and retail uses; Suites 101, 105, and 110 included; Built in 2005
