Commercial Location with Development
For Sale
$2,070,000
4100 W Hwy 98, Panama City, FL 32405
Mixed-use commercial property with development potential in Panama City, FL.
Property Size15,000 SF
Lot Size1.80 Acres
Price / SF$138
Days on Market1152
Property Features for 4100 W Hwy 98
General Information
Standard status
Active
Size
15,000 SF
Lot size
1.80 Acres
Property subtype
Commercial
Building Details
Year Built
1983
Listing Agency:
ST ANDREWS BAY REALTY
(850) 769-4444
Listed By:
JOHN B MCVEIGH
(850) 769-7653
Source:
Corcoran
Added: Jul 11, 2023
Changed: Sep 3
Last Checked: Sep 2 at 6:23PM
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 ST ANDREWS BAY REALTY
Investment Insights
Based on property information with market context.
This mixed-use commercial property includes a restaurant, mini warehouses, and residential rentals. The site offers development potential for various uses such as a motel, gas station, or fast food establishment. Located at the corner of 4100 W. Hwy 98 and 1805 Grant Avenue, the property features approximately 330 feet of frontage on Highway 98 and approximately 232 feet on Grant Avenue. The property size is 15000 square feet.
Key Highlights
- High DEVELOPMENT POTENTIAL for Motel/Gas Station/Fast Food.
- Multiple use commercial location with restaurant, mini warehouses, and residential rentals.
- Corner lot location at 4100 W. Hwy 98 and 1805 Grant Avenue.
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
$166,122
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
8.03%
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%
$3,322,440
$3.3M
Cap Rate 7%
$2,373,171
$2.4M
Cap Rate 9%
$1,845,800
$1.8M
Market Conditions
NOI Build-Up for 15,000 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
$360.0K $24.00/SF
− Vacancy
−$58.0K −$3.86/SF
EGI
$302.0K $20.14/SF
− OpEx
−$135.9K −$9.06/SF
NOI
$166.1K $11.07/SF
Area
Walton County, FL
Vacancy
16.10%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
45.00%
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%
$3,322,440
Cap Rate 7%
$2,373,171
Cap Rate 9%
$1,845,800
Alternative Uses
Best Use
Specialty Retail
$3.26M
$2.86M – $3.81M
NOI $228,420 @ 7.0% cap · market cap 11.03%
Second Best
Apartment 5plus
$2.37M
$2.08M – $2.77M
NOI $166,122 @ 7.0% cap · market cap 8.03%
Theoretical Best
Office A
$3.77M
$3.30M – $4.40M
NOI $264,060 @ 7.0% cap · market cap 12.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
116
Businesses Nearby
Explore this area
Business Placement
Demographics for 32405, FL
28,158
Population
13,585
Households
2.1
Avg Household Size
40
Median Age
29%
College-Educated
92%
High-School Grad
18.8 sq mi
ZIP Area
1,498
Density / Sq Mi
$71,002
Median Household Income
$41,867
Median Earnings
$1,418
Median Rent
$255,100
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use commercial property with development potential in Panama City, FL.
Where is this mixed-use property located?
The property is located at 4100 W Hwy 98 Panama City, FL.
What is the asking price?
The asking price for this property is $2,070,000.
What are key features of this property?
This property features: High DEVELOPMENT POTENTIAL for Motel/Gas Station/Fast Food.; Multiple use commercial location with restaurant, mini warehouses, and residential rentals.; Corner lot location at 4100 W. Hwy 98 and 1805 Grant Avenue.
