Prime Retail Space For
For Sale
Contact for pricing
Pending
2023 Dr Martin Luther King Jr Dr, Pensacola, FL
1,860 SF retail space in a vibrant Pensacola location.
Property Size1,860 SF
Lot Size0.17 Acres
Days on Market637
Property Features for 2023 Dr Martin Luther King Jr Dr
General Information
Standard status
Pending
Size
1,860 SF
Lot size
0.17 Acres
Property subtype
RETAIL
Listing Agency:
Coldwell Banker Commercial Realty
(850) 432-5320
Listed By:
Michael Mangrum
(850) 748-2264
Source:
Moodyscre
Added: Dec 11, 2024
Changed: Sep 2
Last Checked: Sep 8 at 4:02AM
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 Coldwell Banker Commercial Realty
Investment Insights
Based on property information with market context.
This 1,860 square foot retail space is for sale in Pensacola, Florida. The property is situated on Dr. Martin Luther King Jr Dr, benefiting from high visibility and foot traffic due to its location amidst residential neighborhoods, commercial enterprises, and community services. The space features a flexible floor plan that can be customized for various retail concepts, from boutiques to service-oriented businesses. Large storefront windows provide natural light and visibility, complemented by modern electrical and plumbing systems. The location is accessible via I-110 and thoroughfares, with parking available at the rear of the building. The surrounding neighborhood fosters community engagement, making it suitable for businesses looking to connect with residents. The building is located at the intersection of Dr. Martin Luther King Dr., E Jordan St, and N Haynes St, with two curb cuts providing easy access to I-110. This adaptable space is suited for launching a new retail store, expanding an existing location, or starting a pop-up venture.
Key Highlights
- Prime location on Dr. Martin Luther King Jr Dr with high visibility and foot traffic.
- Easy access to I‑110 via 2 curb cuts.
- 1,860 square feet of adaptable retail space** suitable for various business concepts.
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
$21,022
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
7.25%
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%
$420,440
$420.4K
Cap Rate 7%
$300,314
$300.3K
Cap Rate 9%
$233,578
$233.6K
Market Conditions
NOI Build-Up for 1,860 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
$33.5K $18.00/SF
− Vacancy
−$3.4K −$1.85/SF
EGI
$30.0K $16.15/SF
− OpEx
−$9.0K −$4.84/SF
NOI
$21.0K $11.30/SF
Area
Escambia County, FL
Vacancy
10.30%
Lease Rate
$18.00 /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%
$420,440
Cap Rate 7%
$300,314
Cap Rate 9%
$233,578
Alternative Uses
Best Use
Retail
$300.3K
$262.8K – $350.4K
NOI $21,022 @ 7.0% cap · market cap 7.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$545.9K
$477.7K – $636.9K
NOI $38,212 @ 7.0% cap · market cap 13.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
926
Businesses Nearby
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Retail space - 1,860 SF retail space in a vibrant Pensacola location.
Where is this retail space located?
The property is located at 2023 Dr Martin Luther King Jr Dr Pensacola, FL.
What is the asking price?
The asking price for this property is $290,000.
What are key features of this property?
This property features: Prime location on Dr. Martin Luther King Jr Dr with high visibility and foot traffic.; Easy access to I‑110 via 2 curb cuts.; 1,860 square feet of adaptable retail space** suitable for various business concepts.
