Mary Esther Professional Office
For Sale
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124 Hwy 98, Mary Esther, FL 32569
16-unit professional office complex on Hwy 98, Mary Esther, FL
Property Size25,000 SF
Lot Size0.82 Acres
Price / SF$172
Days on Market668
Property Features for 124 Hwy 98
General Information
Standard status
Active
Size
25,000 SF
Lot size
0.82 Acres
Property subtype
OFFICE
Properties For Sale
at 124 Hwy 98 Contact us- Floor
- 1
- Size
- 2,263 SF
- Type
- OFFICE
- Lease Type
- NNN
- Availability
- AVAILABLE, Now
- Sublease
- No
124 Hwy 98
Prime commercial lease opportunity at 124 Highway 98 #401 in Mary Esther. This well-positioned...
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- Size
- 1,077 SF
- Type
- OFFICE
- Lease Type
- NNN
- Availability
- AVAILABLE
124 Highway 98 - 402
Prime commercial lease opportunity at 124 Highway 98 #402 in Mary Esther. High-visibility...
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Listing Agency:
NBI Properties, Inc.
(850) 217-0303
Listed By:
Craig Barrett · License #3294646
(850) 217-0303
Source:
Moodyscre
Added: Oct 14, 2024
Changed: Aug 8
Last Checked: Aug 8 at 6:01AM
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 NBI Properties, Inc.
Investment Insights
Based on property information with market context.
This 16-unit professional office complex is located in Mary Esther, Florida, situated on Hwy 98 between Hurlburt AFB and Mary Esther Cutoff. The property is positioned west of Target and features highway frontage and visibility. The complex is designed for professional office use and is currently occupied by a mix of tenants, including defense contractors and medical professionals. The property offers ample parking. The property size is 25000 square feet.
Key Highlights
- Prime location on Hwy 98 between Hurlburt AFB and Mary Esther Cutoff.
- 16‑unit professional office complex.
- Steady rental income from a diverse mix of tenants (defense contractors, medical professionals, etc.).
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
$322,875
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
7.51%
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%
$6,457,500
$6.5M
Cap Rate 7%
$4,612,500
$4.6M
Cap Rate 9%
$3,587,500
$3.6M
Market Conditions
NOI Build-Up for 25,000 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
$525.0K $21.00/SF
− Vacancy
−$94.5K −$3.78/SF
EGI
$430.5K $17.22/SF
− OpEx
−$107.6K −$4.31/SF
NOI
$322.9K $12.92/SF
Area
Okaloosa County, FL
Vacancy
18.00%
Lease Rate
$21.00 /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%
$6,457,500
Cap Rate 7%
$4,612,500
Cap Rate 9%
$3,587,500
Alternative Uses
Best Use
Office B
$4.61M
$4.04M – $5.38M
NOI $322,875 @ 7.0% cap · market cap 7.51%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$9.63M
$8.43M – $11.24M
NOI $674,393 @ 7.0% cap · market cap 15.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
585
Businesses Nearby
Explore this area
Business Placement
Demographics for 32569, FL
12,378
Population
5,795
Households
2.1
Avg Household Size
38
Median Age
40%
College-Educated
95%
High-School Grad
4.2 sq mi
ZIP Area
2,947
Density / Sq Mi
$73,762
Median Household Income
$43,832
Median Earnings
$1,456
Median Rent
$296,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - 16-unit professional office complex on Hwy 98, Mary Esther, FL
Where is this office building located?
The property is located at 124 Hwy 98 Mary Esther, FL.
What is the asking price?
The asking price for this property is $4,300,000.
What are key features of this property?
This property features: Prime location on Hwy 98 between Hurlburt AFB and Mary Esther Cutoff.; 16‑unit professional office complex.; Steady rental income from a diverse mix of tenants (defense contractors, medical professionals, etc.).
