Mesa Office Condo For
For Sale
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535 E McKellips Rd, Mesa, AZ 85201
Turn-key office condo with prime location and essential amenities.
Property Size3,504 SF
Price / SF$265.41
Days on Market683
Property Features for 535 E McKellips Rd
General Information
Standard status
Active
Size
3,504 SF
Total Parking Spaces
6
Property subtype
Office
Zoning
LC, City of Mesa
Investment Type
Owner/User
Building Details
Year Built
2004
Tenancy
Single
Listing Agency:
Commercial Properties Inc Tempe
(480) 966-7513
Listed By:
Tyson Breinholt · License #AZ BR517298000
Source:
Crexi
Added: Oct 3, 2024
Changed: Aug 8
Last Checked: May 12 at 10:02PM
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 office condo, constructed in 2004, offers approximately 3,504 square feet of space. The property features a single-tenant setup with a reception area, six offices, a conference room, a break room, a bull pen, and three restrooms. It is located at 535 E McKellips Rd, Bldg 4, Suite 117, Mesa, AZ 85203, with frontage on E McKellips Rd and easy access to Loop 202. The location is also in close proximity to Downtown Mesa. Covered parking spots are included. This property is intended for owner-users seeking a professional workspace.
Key Highlights
- Turn‑key, single‑tenant office condo with approximately 3,504 SF.
- Strategic location with frontage on E McKellips Rd and easy access to Loop 202.
- Close proximity to Downtown Mesa.
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
$47,257
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
5.08%
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%
$945,140
$945.1K
Cap Rate 7%
$675,100
$675.1K
Cap Rate 9%
$525,078
$525.1K
Market Conditions
NOI Build-Up for 3,504 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
$77.8K $22.20/SF
− Vacancy
−$14.8K −$4.22/SF
EGI
$63.0K $17.98/SF
− OpEx
−$15.8K −$4.50/SF
NOI
$47.3K $13.49/SF
Area
ZIP 85201
Vacancy
19.00%
Lease Rate
$22.20 /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%
$945,140
Cap Rate 7%
$675,100
Cap Rate 9%
$525,078
Alternative Uses
Best Use
Office B
$675.1K
$590.7K – $787.6K
NOI $47,257 @ 7.0% cap · market cap 5.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$908.2K
$794.7K – $1.06M
NOI $63,577 @ 7.0% cap · market cap 6.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
386
Businesses Nearby
Explore this area
Business Placement
Demographics for 85201, AZ
51,187
Population
23,099
Households
2.2
Avg Household Size
33
Median Age
27%
College-Educated
87%
High-School Grad
9.4 sq mi
ZIP Area
5,445
Density / Sq Mi
$63,725
Median Household Income
$40,067
Median Earnings
$1,349
Median Rent
$292,600
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?
Office units - Turn-key office condo with prime location and essential amenities.
Where is this office units located?
The property is located at 535 E McKellips Rd Mesa, AZ.
What is the asking price?
The asking price for this property is $930,000.
What are key features of this property?
This property features: Turn‑key, single‑tenant office condo with approximately 3,504 SF.; Strategic location with frontage on E McKellips Rd and easy access to Loop 202.; Close proximity to Downtown Mesa.
