Mesa Industrial Buildings with
For Sale
Contact for pricing
303 W Southern Ave, Mesa, AZ 85210
Two industrial buildings totaling 73,500 SF on 4.52 acres.
Property Size73,500 SF
Lot Size4.52 Acres
Price / SF$149.66
Days on Market1308
Property Features for 303 W Southern Ave
General Information
Standard status
Active
Size
73,500 SF
Class
B
Lot size
4.52 Acres
Property subtype
Industrial
Zoning
Light Industrial
Building Details
Buildings
2
Stories
1
Listing Agency:
Rein & Grossoehme Commercial Real Estate
Listed By:
Max Schumacher, SIOR · License #SA678600000
Source:
Crexi
Added: Jan 11, 2023
Changed: Aug 8
Last Checked: Aug 10 at 3:32PM
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 Rein & Grossoehme Commercial Real Estate
Investment Insights
Based on property information with market context.
The property at 303 W Southern Ave in Mesa, AZ, comprises two industrial buildings with a total area of 73,500 square feet, situated on 4.52 acres. The property is offered for sale below replacement cost and features a large, fenced, and secured yard. It benefits from immediate freeway access and frontage on Southern Avenue. The configuration supports one to three tenants. The buildings are positioned with a common drive lane leading to the secured yard. The secured yard space measures 1.64 acres. There are twelve oversized grade-level loading doors, designed for drive-through access, each with a clearance of 16 feet by 12 feet. This property presents an opportunity for an owner-user to occupy both buildings or a portion of the property, with the option to lease out the remaining space.
Key Highlights
- Large fenced and secured yard (1.64 acres)
- Two industrial buildings totaling 73,000 SF on 4.58 acres
- Priced below replacement cost
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
$731,563
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
6.65%
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%
$14,631,260
$14.6M
Cap Rate 7%
$10,450,900
$10.5M
Cap Rate 9%
$8,128,478
$8.1M
Market Conditions
NOI Build-Up for 73,500 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
$1.12M $15.24/SF
− Vacancy
−$75.0K −$1.02/SF
EGI
$1.05M $14.22/SF
− OpEx
−$313.5K −$4.27/SF
NOI
$731.6K $9.95/SF
Area
Mesa, AZ
Vacancy
6.70%
Lease Rate
$15.24 /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%
$14,631,260
Cap Rate 7%
$10,450,900
Cap Rate 9%
$8,128,478
Alternative Uses
Best Use
Industrial
$10.45M
$9.14M – $12.19M
NOI $731,563 @ 7.0% cap · market cap 6.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$20.15M
$17.63M – $23.50M
NOI $1,410,283 @ 7.0% cap · market cap 12.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,094
Businesses Nearby
Explore this area
Business Placement
Demographics for 85210, AZ
40,351
Population
16,292
Households
2.5
Avg Household Size
32
Median Age
25%
College-Educated
84%
High-School Grad
6.7 sq mi
ZIP Area
6,023
Density / Sq Mi
$59,680
Median Household Income
$38,479
Median Earnings
$1,383
Median Rent
$301,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Two industrial buildings totaling 73,500 SF on 4.52 acres.
Where is this industrial property located?
The property is located at 303 W Southern Ave Mesa, AZ.
What is the asking price?
The asking price for this property is $11,000,000.
What are key features of this property?
This property features: Large fenced and secured yard (1.64 acres); Two industrial buildings totaling 73,000 SF on 4.58 acres; Priced below replacement cost
