Two-Suite Medical
For Sale
Contact for pricing
855 E Brown Rd, Mesa, AZ 85203
Contiguous suites retain clinical plumbing and separate medical-office improvements for future occupancy.
Property Size2,592 SF
Price / SF$295.14
Days on Market35
Property Features for 855 E Brown Rd
General Information
Standard status
Active
Size
2,592 SF
Property subtype
Office
Investment Type
Owner/User
Additional Details
Asking Price
$765,000
Office Units
2
Building Details
Year Built
1975
Units
2
Construction
block-and-brick
Listing Agency:
Royal Commercial Real Estate LLC
Listed By:
Robert Poe · License #AZ BR665426000
Source:
Crexi
Added: Jul 29
Changed: Aug 29
Last Checked: Sep 1 at 12:43AM
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 Royal Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
This medical office property includes two contiguous condominium suites totaling approximately 2,592 SF: Suite 10 measures approximately 1,353 SF and Suite 11 approximately 1,239 SF. Both suites are scheduled to be delivered vacant at closing. Suite 10 includes exam-room sinks, a private physician’s office with an attached shower and bathroom, and a separate parking-lot entrance. Suite 11 has upgraded interior finishes, while both suites retain clinical plumbing associated with their former dental-office configuration.
The 1975 property features block-and-brick construction, a roof resurfaced in 2020, updated plumbing and electrical systems, and renovated interiors. An owner-managed HOA maintains the common grounds, with expenses passed through. The seller will consider a post-closing leaseback for up to one (1) year.
The 1975 property features block-and-brick construction, a roof resurfaced in 2020, updated plumbing and electrical systems, and renovated interiors. An owner-managed HOA maintains the common grounds, with expenses passed through. The seller will consider a post-closing leaseback for up to one (1) year.
Key Highlights
- Two contiguous medical office condos totaling approximately 2,592 SF
- Suite 10: approximately 1,353 SF; Suite 11: approximately 1,239 SF
- Both suites delivered vacant at closing
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
$44,414
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
5.81%
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%
$888,280
$888.3K
Cap Rate 7%
$634,486
$634.5K
Cap Rate 9%
$493,489
$493.5K
Market Conditions
NOI Build-Up for 2,592 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
$75.0K $28.92/SF
− Vacancy
−$15.7K −$6.07/SF
EGI
$59.2K $22.85/SF
− OpEx
−$14.8K −$5.71/SF
NOI
$44.4K $17.14/SF
Area
Mesa, AZ
Vacancy
21.00%
Lease Rate
$28.92 /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%
$888,280
Cap Rate 7%
$634,486
Cap Rate 9%
$493,489
Alternative Uses
Best Use
Office B
$634.5K
$555.2K – $740.2K
NOI $44,414 @ 7.0% cap · market cap 5.81%
Second Best
Healthcare Medical
$281.1K
$246.0K – $327.9K
NOI $19,676 @ 7.0% cap · market cap 2.57%
Theoretical Best
Office A
$710.5K
$621.7K – $828.9K
NOI $49,734 @ 7.0% cap · market cap 6.50%
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
436
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85203, AZ
37,962
Population
14,020
Households
2.7
Avg Household Size
33
Median Age
29%
College-Educated
91%
High-School Grad
9.3 sq mi
ZIP Area
4,082
Density / Sq Mi
$72,851
Median Household Income
$40,524
Median Earnings
$1,388
Median Rent
$388,300
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?
Medical Office Space - Contiguous suites retain clinical plumbing and separate medical-office improvements for future occupancy.
Where is this medical office space located?
The property is located at 855 E Brown Rd Mesa, AZ.
What is the asking price?
The asking price for this property is $765,000.
What are key features of this property?
This property features: Two contiguous medical office condos totaling approximately 2,592 SF; Suite 10: approximately 1,353 SF; Suite 11: approximately 1,239 SF; Both suites delivered vacant at closing
