Mesa Retail Redevelopment
For Sale
Contact for pricing
903-933 E Main St, Mesa, AZ 85203
Value-add retail property on 1.58 acres, prime for redevelopment.
Property Size32,702 SF
Lot Size1.58 Acres
Price / SF$128.43
Days on Market1426
Property Features for 903-933 E Main St
General Information
Standard status
Active
Size
32,702 SF
Lot size
1.58 Acres
Property subtype
Retail, Mixed Use
Zoning
LC
Building Details
Year Built
1973
Listing Agency:
Commercial Properties Inc Tempe
(602) 373-4717
Listed By:
Brandon Koplin · License #AZ SA567178000
Source:
Crexi
Added: Sep 14, 2022
Changed: Aug 8
Last Checked: May 19 at 8:59PM
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 Tempe
Investment Insights
Based on property information with market context.
This 32,000 square foot commercial building, situated on 1.58 acres, presents a redevelopment opportunity. The property is located in Mesa, Arizona. The site benefits from direct light rail frontage, offering visibility and access. It is located minutes from downtown restaurants and amenities and sits within an Opportunity Zone, potentially providing tax incentives. Short-term leases are in place, generating income while planning and entitlement processes are underway. The property is located in a retail area of east Mesa, near the Superstition Mountains and Apache Trail tourism and recreation areas. The frontage on Main Street attracts the nearby retiree community and adventure seekers. The multi-tenant retail property is located within a designated Opportunity Zone, offering tax advantages. The site is suited for redevelopment, modernization, or a strategic lease-up plan. Currently operated with minimal upkeep, the building shows value-add potential through cosmetic improvements. All tenants are on month-to-month agreements, providing flexibility to refresh the tenant mix, renegotiate leases, or vacate units to maximize revenue.
Key Highlights
- High‑density redevelopment opportunity on 1.58 acres with direct light rail frontage.
- Located within an Opportunity Zone, offering attractive tax incentives.
- Short‑term leases provide income to offset holding costs.
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
$289,610
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
6.90%
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%
$5,792,200
$5.8M
Cap Rate 7%
$4,137,286
$4.1M
Cap Rate 9%
$3,217,889
$3.2M
Market Conditions
NOI Build-Up for 32,702 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
$443.4K $13.56/SF
− Vacancy
−$29.7K −$0.91/SF
EGI
$413.7K $12.65/SF
− OpEx
−$124.1K −$3.80/SF
NOI
$289.6K $8.86/SF
Area
Mesa, AZ
Vacancy
6.70%
Lease Rate
$13.56 /SF/Yr
Expense Ratio
30.00%
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%
$5,792,200
Cap Rate 7%
$4,137,286
Cap Rate 9%
$3,217,889
Alternative Uses
Best Use
Retail
$4.14M
$3.62M – $4.83M
NOI $289,610 @ 7.0% cap · market cap 6.90%
Second Best
Mixed Use
$3.69M
$3.23M – $4.31M
NOI $258,580 @ 7.0% cap · market cap 6.16%
Theoretical Best
Office A
$8.96M
$7.84M – $10.46M
NOI $627,470 @ 7.0% cap · market cap 14.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,695
Businesses Nearby
50k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 54%
Dining 44%
Electronics 2%
Jimmy John's
Dining
20,688 visits/mo
0.4 miles
Circle K
Shops & Services
11,765 visits/mo
0.5 miles
Circle K
Shops & Services
5,118 visits/mo
0.5 miles
Wells Fargo
Shops & Services
4,887 visits/mo
0.1 miles
Deseret Book
Shops & Services
3,093 visits/mo
0.1 miles
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 Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - Value-add retail property on 1.58 acres, prime for redevelopment.
Where is this shopping center located?
The property is located at 903-933 E Main St Mesa, AZ.
What is the asking price?
The asking price for this property is $4,200,000.
What are key features of this property?
This property features: High‑density redevelopment opportunity on 1.58 acres with direct light rail frontage.; Located within an Opportunity Zone, offering attractive tax incentives.; Short‑term leases provide income to offset holding costs.
