Historic Home with Commercial
For Sale
$209,900
1717 W Government St, Pensacola, FL 32502
848 SF Historic Home For Sale Zoned C-3 in Tanyard Neighborhood
Property Size848 SF
Lot Size0.17 Acres
Price / SF$247.52
Days on Market573
Property Features for 1717 W Government St
General Information
Standard status
Active
Property type
Other office properties, Residential offices, Other mixed-use properties, Office Spaces, Mixed-use properties
Size
848 SF
Class
B
Elevators
N/A
Lot size
0.17 Acres
Building Details
Year Built
1935
Year Renovated
2023
Buildings
1
Stories
1
Listed By:
Paul Salter
(850) 564-0120
Added: Feb 7, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This historic 848-square-foot home is located in Pensacola's Tanyard neighborhood. Zoned C-3, the property allows for a variety of intensive commercial uses. Situated on a 0.17-acre lot, the property boasts a large fenced yard, providing ample space for parking. The home features a recently installed roof, new plumbing, and a newer HVAC system. Additional features include a termite bond and a gas stove. The property includes screened front and back porches, along with a front deck and an in-home laundry room. Three oak trees grace the property. Its location places it within three blocks of the Emerald Republic Brewery and within walking distance of several restaurants including the Pearl & Horn, Taste of Jerusalem, Camellia, and Oar House. The property previously commanded a monthly rental income of $1,700.
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
$14,302
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
6.81%
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%
$286,040
$286.0K
Cap Rate 7%
$204,314
$204.3K
Cap Rate 9%
$158,911
$158.9K
Market Conditions
NOI Build-Up for 848 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
$21.3K $25.08/SF
− Vacancy
−$2.2K −$2.59/SF
EGI
$19.1K $22.49/SF
− OpEx
−$4.8K −$5.62/SF
NOI
$14.3K $16.87/SF
Area
Escambia County, FL
Vacancy
10.34%
Lease Rate
$25.08 /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%
$286,040
Cap Rate 7%
$204,314
Cap Rate 9%
$158,911
Alternative Uses
Best Use
Office B
$204.3K
$178.8K – $238.4K
NOI $14,302 @ 7.0% cap · market cap 6.81%
Second Best
Mixed Use
$143.9K
$125.9K – $167.9K
NOI $10,074 @ 7.0% cap · market cap 4.80%
Theoretical Best
Office A
$248.9K
$217.8K – $290.4K
NOI $17,421 @ 7.0% cap · market cap 8.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,702
Businesses Nearby
Explore this area
Business Placement
Demographics for 32502, FL
4,277
Population
2,582
Households
1.7
Avg Household Size
46
Median Age
36%
College-Educated
92%
High-School Grad
2.7 sq mi
ZIP Area
1,584
Density / Sq Mi
$67,548
Median Household Income
$41,011
Median Earnings
$1,313
Median Rent
$229,000
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 property - 848 SF Historic Home For Sale Zoned C-3 in Tanyard Neighborhood
Where is this office property located?
The property is located at 1717 W Government St Pensacola, FL.
What is the asking price?
The asking price for this property is $209,900.
