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116 S Industrial Dr 15,750 SF Industrial Building Tempe, AZ 85281 $3,600,000 ($228.57/SF) 6% Cap Rate
Investment Highlights
- Positioned near major mixed-use developments and educational institutions, supporting long-term growth potential.
- Recent upgrades include new roof, LED lighting, and exterior renovations, reducing near-term capital requirements.
- Functional building layout with specialized industrial configuration to support advanced manufacturing uses.
- Exceptional regional access via Loop 101, Loop 202, and proximity to Phoenix Sky Harbor International Airport.
Executive Summary
116 S. Industrial Drive presents an institutional-quality industrial investment in Tempe’s scarce infill corridor. The property encompasses 15,750 square feet on a 0.75-acre parcel, fully leased to TS Industries LLC under an absolute net lease running through June 2031. The tenant assumes responsibility for all expenses including taxes, insurance, utilities, and building maintenance, delivering investors stabilized cash flow with minimal landlord obligation. The offering provides immediate income security, with rent commencement scheduled for September 2026 and a projected cap rate of 6 percent based on $216,000 annual NOI.
Significant owner-led capital improvements—including a new roof with a 10-year warranty, updated exterior finishes, LED lighting, window replacements, and new overhead doors—further enhance asset longevity. Strategically located near Loop 101, Loop 202, and Phoenix Sky Harbor International Airport, the property benefits from connectivity to major logistics corridors and employment hubs. Proximity to Arizona State University and ongoing developments such as Novus Innovation Corridor and the $1.8 billion South Pier project underscore demand fundamentals and potential appreciation. This investment combines long-term stability, strong physical condition, and exposure to one of metro Phoenix’s most dynamic industrial nodes.
Significant owner-led capital improvements—including a new roof with a 10-year warranty, updated exterior finishes, LED lighting, window replacements, and new overhead doors—further enhance asset longevity. Strategically located near Loop 101, Loop 202, and Phoenix Sky Harbor International Airport, the property benefits from connectivity to major logistics corridors and employment hubs. Proximity to Arizona State University and ongoing developments such as Novus Innovation Corridor and the $1.8 billion South Pier project underscore demand fundamentals and potential appreciation. This investment combines long-term stability, strong physical condition, and exposure to one of metro Phoenix’s most dynamic industrial nodes.
Property Facts
| Price | $3,600,000 | Rentable Building Area | 15,750 SF |
| Price Per SF | $228.57 | No. Stories | 1 |
| Sale Type | Investment | Year Built | 1970 |
| Cap Rate | 6% | Tenancy | Single |
| Property Type | Industrial | Parking Ratio | 1.27/1,000 SF |
| Property Subtype | Warehouse | Clear Ceiling Height | 18’ |
| Building Class | B | No. Drive In / Grade-Level Doors | 4 |
| Lot Size | 0.70 AC | Opportunity Zone |
Yes
|
| Zoning | I-3, Tempe - I-3, Heavy Industrial | ||
| Price | $3,600,000 |
| Price Per SF | $228.57 |
| Sale Type | Investment |
| Cap Rate | 6% |
| Property Type | Industrial |
| Property Subtype | Warehouse |
| Building Class | B |
| Lot Size | 0.70 AC |
| Rentable Building Area | 15,750 SF |
| No. Stories | 1 |
| Year Built | 1970 |
| Tenancy | Single |
| Parking Ratio | 1.27/1,000 SF |
| Clear Ceiling Height | 18’ |
| No. Drive In / Grade-Level Doors | 4 |
| Opportunity Zone |
Yes |
| Zoning | I-3, Tempe - I-3, Heavy Industrial |
Utilities
- Gas - Natural
1 1
Fairly walkable
50/100
Exceptionally drivable
100/100
Good public transit
60/100
Moderately bikeable
70/100
Property Taxes
| Parcel Number | 132-41-035 | Improvements Assessment | $0 |
| Land Assessment | $0 | Total Assessment | $137,867 |
Property Taxes
Parcel Number
132-41-035
Land Assessment
$0
Improvements Assessment
$0
Total Assessment
$137,867
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