Regional Shopping Center For
For Sale
$36,950,000
9897 W McDowell Rd, Tolleson, AZ 85353
98,343 SF shopping center at a dominant intersection.
Property Size98,343 SF
Price / SF$375.73
Days on Market131
Property Features for 9897 W McDowell Rd
General Information
Standard status
Active
Size
98,343 SF
Property subtype
Retail
Listing Agency:
Phoenix Commercial Advisors
(602) 385-1328
Listed By:
Danny Gardiner · License #SA536326000
Source:
Phoenixcommercialadvisors
Added: Apr 1
Changed: Aug 8
Last Checked: Aug 8 at 6:51AM
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 Phoenix Commercial Advisors
Investment Insights
Based on property information with market context.
This 98,343 square-foot regional shopping center is located at the southeast corner of 99th Avenue and McDowell Road in Tolleson, Arizona, at the connection of the I-10 and Loop 101 highways. The property is 99% occupied and anchored by NAPA Auto Parts. The location benefits from high traffic counts, with nearly 427,000 vehicles per day. Strong daytime employment exists in the immediate area, with over 107,000 workers within a 5-mile radius. The West Valley is one of the fastest-growing housing areas of metro Phoenix, with approximately 7,564 new homes platted, planned, and under construction in the immediate trade area. The property is situated in Maricopa County, one of the fastest-growing counties in the United States. It serves the residents of Avondale, Phoenix, Glendale, Litchfield, and Tolleson. The center features two 90-foot high pylon signs facing the I-10 and Loop 101. The property has a capitalization rate of 6.54%. There is limited shop vacancy at the intersection, with approximately 5,850 square feet of vacant shop space out of over 1.2 million square feet of total retail space. The property has a historical compound annual growth rate of 3.44% from 2020-2026. An attractive breakup strategy through parcellation is available for future investors.
Key Highlights
- Dominant regional shopping center at a high‑traffic intersection (I‑10 & Loop 101) with nearly 427,000 vehicles per day.
- Strong co‑tenancy with major retailers including Costco, Best Buy, Ross, Harkins Theatres, Hobby Lobby, Main Event, and Sprouts Farmers Market.
- High occupancy rate of 99% with strong historic occupancy and lease extensions.
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
$1,239,948
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
3.36%
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%
$24,798,960
$24.8M
Cap Rate 7%
$17,713,543
$17.7M
Cap Rate 9%
$13,777,200
$13.8M
Market Conditions
NOI Build-Up for 98,343 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
$1.86M $18.96/SF
− Vacancy
−$93.2K −$0.95/SF
EGI
$1.77M $18.01/SF
− OpEx
−$531.4K −$5.40/SF
NOI
$1.24M $12.61/SF
Area
Maricopa County, AZ
Vacancy
5.00%
Lease Rate
$18.96 /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%
$24,798,960
Cap Rate 7%
$17,713,543
Cap Rate 9%
$13,777,200
Alternative Uses
Best Use
Retail
$17.71M
$15.50M – $20.67M
NOI $1,239,948 @ 7.0% cap · market cap 3.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$30.42M
$26.62M – $35.49M
NOI $2,129,411 @ 7.0% cap · market cap 5.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
770
Businesses Nearby
456k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 40%
Apparel 34%
Shops & Services 23%
Dining 3%
Costco Wholesale
Superstores
181,342 visits/mo
0.4 miles
Costco Gasoline
Shops & Services
80,087 visits/mo
0.4 miles
Marshalls
Apparel
61,500 visits/mo
0.5 miles
Burlington
Apparel
41,606 visits/mo
0.5 miles
Ross Dress for Less
Apparel
38,840 visits/mo
0.5 miles
Demographics for 85353, AZ
42,936
Population
12,500
Households
3.4
Avg Household Size
28
Median Age
14%
College-Educated
74%
High-School Grad
21.5 sq mi
ZIP Area
1,997
Density / Sq Mi
$88,867
Median Household Income
$41,376
Median Earnings
$1,626
Median Rent
$344,600
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Park 10 — 10321 W McDowell Rd, Avondale, AZ 85392
- Gateway Village — 10273 W McDowell Rd, Avondale, AZ 85392
Frequently Asked Questions
What type of property is this?
Shopping center - 98,343 SF shopping center at a dominant intersection.
Where is this shopping center located?
The property is located at 9897 W McDowell Rd Tolleson, AZ.
What is the asking price?
The asking price for this property is $36,950,000.
What are key features of this property?
This property features: Dominant regional shopping center at a high‑traffic intersection (I‑10 & Loop 101) with nearly 427,000 vehicles per day.; Strong co‑tenancy with major retailers including Costco, Best Buy, Ross, Harkins Theatres, Hobby Lobby, Main Event, and Sprouts Farmers Market.; High occupancy rate of 99% with strong historic occupancy and lease extensions.
