Office/Warehouse in Fort Walton
For Sale
$1,250,000
2 NW Racetrack Road, Fort Walton Beach, FL 32547
Freestanding 9,760 SF office/warehouse with excellent access and visibility.
Property Size9,760 SF
Lot Size0.81 Acres
Price / SF$128.07
Days on Market472
Property Features for 2 NW Racetrack Road
General Information
Standard status
Active
Size
9,760 SF
Lot size
0.81 Acres
Property subtype
Commercial
Listing Agency:
TAYLOR ALLEN PROPERTIES LLC
(850) 259-2894
Listed By:
CHAD KNAEPPLE
(850) 687-4075
Source:
Corcoran
Added: May 20, 2025
Changed: Sep 3
Last Checked: Sep 2 at 6:19PM
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 TAYLOR ALLEN PROPERTIES LLC
Investment Insights
Based on property information with market context.
This 9,760 square foot freestanding office and warehouse property is available for sale. The building includes 5,140 square feet of office and showroom space, along with 4,620 square feet of warehouse area. Situated on a 0.8-acre lot, the property provides 30 parking spaces. It benefits from access to both Mooney Road and Racetrack Road, offering convenient access and visibility, making it suitable for service-related businesses. The location has an average annual daily traffic count of 28,500.
Key Highlights
- Freestanding 9760 sf Office/Warehouse
- Excellent access and visibility on .8 acres
- Features 5140 sf of Office/Showroom and 4620 sf of warehouse space
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
$107,340
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
8.59%
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%
$2,146,800
$2.1M
Cap Rate 7%
$1,533,429
$1.5M
Cap Rate 9%
$1,192,667
$1.2M
Market Conditions
NOI Build-Up for 9,760 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
$175.7K $18.00/SF
− Vacancy
−$10.5K −$1.08/SF
EGI
$165.1K $16.92/SF
− OpEx
−$57.8K −$5.92/SF
NOI
$107.3K $11.00/SF
Area
Okaloosa County, FL
Vacancy
6.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
35.00%
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%
$2,146,800
Cap Rate 7%
$1,533,429
Cap Rate 9%
$1,192,667
Alternative Uses
Best Use
Flex RnD
$1.53M
$1.34M – $1.79M
NOI $107,340 @ 7.0% cap · market cap 8.59%
Second Best
Industrial
$721.7K
$631.5K – $842.0K
NOI $50,519 @ 7.0% cap · market cap 4.04%
Theoretical Best
Specialty Retail
$3.76M
$3.29M – $4.39M
NOI $263,283 @ 7.0% cap · market cap 21.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
686
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 32547, FL
35,466
Population
16,112
Households
2.2
Avg Household Size
37
Median Age
28%
College-Educated
89%
High-School Grad
29.0 sq mi
ZIP Area
1,223
Density / Sq Mi
$67,822
Median Household Income
$36,465
Median Earnings
$1,421
Median Rent
$299,400
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- That's My Dogg — food truck Chevron gas station, 708 Lewis Turner Boulevard mobile, Fort Walton Beach, FL 32547
Frequently Asked Questions
What type of property is this?
Flex space - Freestanding 9,760 SF office/warehouse with excellent access and visibility.
Where is this flex space located?
The property is located at 2 NW Racetrack Road Fort Walton Beach, FL.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Freestanding 9760 sf Office/Warehouse; Excellent access and visibility on .8 acres; Features 5140 sf of Office/Showroom and 4620 sf of warehouse space
