Adaptable Building in Commerce
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15601 N 28th Ave, Phoenix, AZ 85053
40,666 SF building suitable for multiple uses.
Property Size40,620 SF
Lot Size3.85 Acres
Price / SF$307.73
Days on Market808
Property Features for 15601 N 28th Ave
General Information
Standard status
Active
Size
40,620 SF
Class
B
Lot size
3.85 Acres
Property subtype
Industrial
Zoning
CP/GCP
Building Details
Year Renovated
2017
Buildings
1
Tenancy
Multi
Listing Agency:
R.O.I. Properties
(602) 319-1326
Listed By:
Beth Jo Zeitzer · License #AZ BR044331000
Source:
Crexi
Added: May 23, 2024
Changed: Aug 8
Last Checked: Aug 7 at 7:07AM
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 R.O.I. Properties
Investment Insights
Based on property information with market context.
This property features a 40,066 square foot building situated on a 3.85-acre parcel within the General Commerce Park. The location offers excellent freeway access and visibility. Currently, the building coverage ratio is approximately 16.24%, with the potential to increase up to 50% under General Commerce Park zoning, subject to buyer verification. The existing improvements are designed for medical office use but can be retrofitted for office, research and development, or potentially climate-controlled advanced manufacturing. The property's low lot coverage, commerce park zoning, and excess land provide opportunities for redevelopers and end users.
Key Highlights
- 40,066 SF building on 3.85 AC parcel.
- Excellent freeway access and visibility.
- General Commerce Park zoning allows for up to 50% lot coverage (buyer to verify).
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
$695,362
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
5.56%
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%
$13,907,240
$13.9M
Cap Rate 7%
$9,933,743
$9.9M
Cap Rate 9%
$7,726,244
$7.7M
Market Conditions
NOI Build-Up for 40,620 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
$1.25M $30.72/SF
− Vacancy
−$320.7K −$7.90/SF
EGI
$927.1K $22.82/SF
− OpEx
−$231.8K −$5.71/SF
NOI
$695.4K $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%
$13,907,240
Cap Rate 7%
$9,933,743
Cap Rate 9%
$7,726,244
Alternative Uses
Best Use
Office B
$9.93M
$8.69M – $11.59M
NOI $695,362 @ 7.0% cap · market cap 5.56%
Second Best
Healthcare Medical
$8.27M
$7.24M – $9.65M
NOI $579,079 @ 7.0% cap · market cap 4.63%
Theoretical Best
Office A
$12.30M
$10.77M – $14.35M
NOI $861,290 @ 7.0% cap · market cap 6.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
531
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85053, AZ
30,136
Population
12,003
Households
2.5
Avg Household Size
37
Median Age
26%
College-Educated
89%
High-School Grad
5.2 sq mi
ZIP Area
5,795
Density / Sq Mi
$66,870
Median Household Income
$43,411
Median Earnings
$1,385
Median Rent
$329,500
Median Home Value
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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- DIABETIC APOTHECARY — 15640 N 28th Dr SUITE PHARMACY, Phoenix, AZ 85053
Frequently Asked Questions
What type of property is this?
Medical Office Space - 40,666 SF building suitable for multiple uses.
Where is this medical office space located?
The property is located at 15601 N 28th Ave Phoenix, AZ.
What is the asking price?
The asking price for this property is $12,500,000.
What are key features of this property?
This property features: 40,066 SF building on 3.85 AC parcel.; Excellent freeway access and visibility.; General Commerce Park zoning allows for up to 50% lot coverage (buyer to verify).
