Two-Story Office Building with Covered
For Sale
$1,925,000
Pending
106240 Overseas Hwy, Key Largo, FL 33037
Two-story office building with newly installed metal roof, leased ground floor space, and additional second-story area available.
Property Size3,936 SF
Lot Size0.50 Acres
Days on Market379
Property Features for 106240 Overseas Hwy
General Information
Standard status
Pending
Size
3,936 SF
Lot size
0.50 Acres
Additional Details
Fenced Yard
Yes
Taxes and HOA fees
Annual Taxes
$12,050
Building Details
Stories
2
Listing Agency:
Cornell Commercial Real Estate, Inc.
(305) 731-0060
Listed By:
Bud Cornell
(305) 731-0060
Source:
Exprealty
Added: Aug 14, 2025
Changed: Aug 20
Last Checked: Aug 26 at 11:52AM
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 Cornell Commercial Real Estate, Inc.
Investment Insights
Based on property information with market context.
This two-story, yellow office building sits on just under a half an acre of commercial property. The building includes 3,936 square feet under air conditioning and 900 square feet of covered porch/parking. The ground floor is split into two suites: the north side (1,300 square feet) is currently leased to the Visitor's Center, and the south side (1,200 square feet) is open. The second story offers an additional 1,400 square feet and is available for lease.
New metal roof was installed in 2024. The back two lots are fenced and currently used as a storage area. The property is available for purchase and/or lease, and an assumable SBA 504 loan is available in the amount of approximately $1,642,000 with a 25-year amortization schedule.
New metal roof was installed in 2024. The back two lots are fenced and currently used as a storage area. The property is available for purchase and/or lease, and an assumable SBA 504 loan is available in the amount of approximately $1,642,000 with a 25-year amortization schedule.
Key Highlights
- Just under 0.5‑acre commercial property with a two‑story yellow office building and covered porch/parking (900 SF).
- Total 3,936 SF under A/C; ground floor has 1,300 SF leased to the Visitor's Center (north side) and 1,200 SF (south side).
- Second story offers 1,400 SF available for lease at $51.00/SF (base price plus percentage for taxes, insurance, and maintenance).
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
$74,213
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
3.86%
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%
$1,484,260
$1.5M
Cap Rate 7%
$1,060,186
$1.1M
Cap Rate 9%
$824,589
$824.6K
Market Conditions
NOI Build-Up for 3,936 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
$118.1K $30.00/SF
− Vacancy
−$19.1K −$4.86/SF
EGI
$99.0K $25.14/SF
− OpEx
−$24.7K −$6.29/SF
NOI
$74.2K $18.86/SF
Area
Monroe County, FL
Vacancy
16.20%
Lease Rate
$30.00 /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%
$1,484,260
Cap Rate 7%
$1,060,186
Cap Rate 9%
$824,589
Alternative Uses
Best Use
Office B
$1.06M
$927.7K – $1.24M
NOI $74,213 @ 7.0% cap · market cap 3.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.58M
$1.39M – $1.85M
NOI $110,825 @ 7.0% cap · market cap 5.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
152
Businesses Nearby
Explore this area
Business Placement
Demographics for 33037, FL
13,875
Population
10,494
Households
1.3
Avg Household Size
53
Median Age
41%
College-Educated
95%
High-School Grad
32.9 sq mi
ZIP Area
422
Density / Sq Mi
$80,911
Median Household Income
$40,641
Median Earnings
$1,896
Median Rent
$660,700
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Two-story office building with newly installed metal roof, leased ground floor space, and additional second-story area available.
Where is this office building located?
The property is located at 106240 Overseas Hwy Key Largo, FL.
What is the asking price?
The asking price for this property is $1,925,000.
What are key features of this property?
This property features: Just under 0.5‑acre commercial property with a two‑story yellow office building and covered porch/parking (900 SF).; Total 3,936 SF under A/C; ground floor has 1,300 SF leased to the Visitor's Center (north side) and 1,200 SF (south side).; Second story offers 1,400 SF available for lease at $51.00/SF (base price plus percentage for taxes, insurance, and maintenance).
