Office Condo with Private
New
For Sale
$500,000
8631 S Priest Dr. #102, Tempe, AZ 85284
Functional administrative suite with reception, conference, private office, open workspace, kitchen, and dedicated parking.
Property Size1,295 SF
Price / SF$386.10
Days on Market2
Property Features for 8631 S Priest Dr. #102
General Information
Standard status
Active
Size
1,295 SF
Class
B
Total Parking Spaces
1
Property subtype
Office
Additional Details
Highway Access
Yes
Office Units
1
Building Details
Building Size
1,295 SF
Listed By:
Justin Horwitz, SIOR
(480) 220-2674
Source:
Svndesertcommercial
Added: Sep 1
Last Checked: Sep 1 at 9:03PM
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 Justin Horwitz, SIOR
Investment Insights
Based on property information with market context.
This 1,295 SF office condominium at 8631 S. Priest Dr. #102 provides a practical administrative layout for an owner-user. The interior includes a reception area, conference room, private office component, open work area, kitchen, and private restroom, supporting a range of day-to-day office functions.
The property is in Tempe near the intersection of Priest Dr. and Warner Rd., with convenient access to I-10. The surrounding area includes numerous retail amenities and the Emerald Design Center. Parking includes one covered, reserved stall along with additional first-come, first-served spaces.
The property is in Tempe near the intersection of Priest Dr. and Warner Rd., with convenient access to I-10. The surrounding area includes numerous retail amenities and the Emerald Design Center. Parking includes one covered, reserved stall along with additional first-come, first-served spaces.
Key Highlights
- 1,295 SF office condo in Tempe
- Reception area, conference room, private office, and open workspace
- Kitchen and private restroom included
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
$23,147
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
4.63%
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%
$462,940
$462.9K
Cap Rate 7%
$330,671
$330.7K
Cap Rate 9%
$257,189
$257.2K
Market Conditions
NOI Build-Up for 1,295 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
$39.3K $30.36/SF
− Vacancy
−$8.5K −$6.53/SF
EGI
$30.9K $23.83/SF
− OpEx
−$7.7K −$5.96/SF
NOI
$23.1K $17.87/SF
Area
Tempe, AZ
Vacancy
21.50%
Lease Rate
$30.36 /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%
$462,940
Cap Rate 7%
$330,671
Cap Rate 9%
$257,189
Alternative Uses
Best Use
Office B
$330.7K
$289.3K – $385.8K
NOI $23,147 @ 7.0% cap · market cap 4.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$407.2K
$356.3K – $475.1K
NOI $28,506 @ 7.0% cap · market cap 5.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
795
Businesses Nearby
Explore this area
Business Placement
Demographics for 85284, AZ
18,638
Population
7,589
Households
2.5
Avg Household Size
45
Median Age
69%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
2,389
Density / Sq Mi
$154,663
Median Household Income
$64,288
Median Earnings
$2,162
Median Rent
$646,300
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 units - Functional administrative suite with reception, conference, private office, open workspace, kitchen, and dedicated parking.
Where is this office units located?
The property is located at 8631 S Priest Dr. #102 Tempe, AZ.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: 1,295 SF office condo in Tempe; Reception area, conference room, private office, and open workspace; Kitchen and private restroom included
