Phoenix Flex Building For
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2625 E Rose Garden Ln, Phoenix, AZ 85050
14,621 SF flex building with high-end finishes and modern warehouse potential.
Property Size14,621 SF
Price / SF$341.97
Days on Market1296
Property Features for 2625 E Rose Garden Ln
General Information
Standard status
Active
Size
14,621 SF
Class
B
Property subtype
Industrial, Mixed Use, Office
Lease Type
NNN
Building Details
Year Built
2004
Buildings
1
Stories
2
Tenancy
Single
Listing Agency:
Ross Brown Partners, Inc
(480) 362-9507
Listed By:
Kyle Mcginley · License #AZ SA663730000
Source:
Crexi
Added: Feb 2, 2023
Changed: Aug 14
Last Checked: Aug 20 at 9:21PM
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 Ross Brown Partners, Inc
Investment Insights
Based on property information with market context.
This 14,621 square foot flex building, located in Phoenix, Arizona, currently serves as the headquarters for Exos, housing their recording studios, executive offices, and training areas. Exos has occupied the building since 2014 and has invested significantly in capital expenditures. The property offers the potential to be converted into modern warehouse space with Class A++ finishes in the office area. The lease expires in December 2027. Loading is facilitated by grade-level doors. Annual escalations are set at 100% of the Consumer Price Index (CPI). The estimated Net Operating Income (NOI) for 2025 is $326,000. The building was awarded Architectural Building of the Year.
Key Highlights
- Leased to Exos, a well‑known tenant, since 2014
- Significant CAPEX investment by current tenant (Exos)
- Potential to convert to modern warehouse space with high‑end office finishes
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
$160,574
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
3.21%
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%
$3,211,480
$3.2M
Cap Rate 7%
$2,293,914
$2.3M
Cap Rate 9%
$1,784,156
$1.8M
Market Conditions
NOI Build-Up for 14,621 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
$280.7K $19.20/SF
− Vacancy
−$33.7K −$2.30/SF
EGI
$247.0K $16.90/SF
− OpEx
−$86.5K −$5.91/SF
NOI
$160.6K $10.98/SF
Area
Phoenix, AZ
Vacancy
12.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$3,211,480
Cap Rate 7%
$2,293,914
Cap Rate 9%
$1,784,156
Alternative Uses
Best Use
Flex RnD
$2.29M
$2.01M – $2.68M
NOI $160,574 @ 7.0% cap · market cap 3.21%
Second Best
Industrial
$1.31M
$1.15M – $1.53M
NOI $91,971 @ 7.0% cap · market cap 1.84%
Theoretical Best
Office A
$4.43M
$3.88M – $5.17M
NOI $310,018 @ 7.0% cap · market cap 6.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
899
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85050, AZ
31,591
Population
13,000
Households
2.4
Avg Household Size
41
Median Age
58%
College-Educated
96%
High-School Grad
14.9 sq mi
ZIP Area
2,120
Density / Sq Mi
$137,389
Median Household Income
$71,401
Median Earnings
$2,200
Median Rent
$564,200
Median Home Value
Market
Vacancy Rate% for Industrial in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 14,621 SF flex building with high-end finishes and modern warehouse potential.
Where is this flex space located?
The property is located at 2625 E Rose Garden Ln Phoenix, AZ.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: Leased to Exos, a well‑known tenant, since 2014; Significant CAPEX investment by current tenant (Exos); Potential to convert to modern warehouse space with high‑end office finishes
