Commercial Building on Krome
For Sale
$3,500,000
505 N Krome Ave, Homestead, FL 33030
7,640 SF commercial building on Krome Ave, Homestead, FL
Property Size7,640 SF
Lot Size0.31 Acres
Price / SF$458.12
Days on Market142
Property Features for 505 N Krome Ave
General Information
Standard status
Active
Size
7,640 SF
Lot size
0.31 Acres
Property subtype
Commercial
Building Details
Building Size
7,640 SF
Year Built
1955
Stories
1
Listing Agency:
Royal Palm Real Estate Services LLC
(305) 216-1211
Listed By:
June Makis · License #3161894
(305) 216-1211
Source:
Elliman
Added: Mar 24
Changed: Aug 8
Last Checked: Aug 8 at 2:26PM
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 Royal Palm Real Estate Services LLC
Investment Insights
Based on property information with market context.
This commercial building offers 7,640 square feet of space on a 13,500 square foot lot. It is located directly on Krome Avenue in the City of Homestead and is zoned B-1. Currently, the property is divided to accommodate two businesses, but it can be remodeled to create up to five separate units, each with its own address and bathroom. The building provides both front and back access. Parking is available on the street in front of the building, with additional paved parking located in the back. The building has recently completed its 40-year recertification.
Key Highlights
- Prime location directly on Krome Ave in Homestead.
- B‑1 zoning suitable for commercial use.
- Large 7,640 sq ft building on a 13,500 sq ft lot.
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
$129,186
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
3.69%
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%
$2,583,720
$2.6M
Cap Rate 7%
$1,845,514
$1.8M
Cap Rate 9%
$1,435,400
$1.4M
Market Conditions
NOI Build-Up for 7,640 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
$201.7K $26.40/SF
− Vacancy
−$17.1K −$2.24/SF
EGI
$184.6K $24.16/SF
− OpEx
−$55.4K −$7.25/SF
NOI
$129.2K $16.91/SF
Area
Miami-Dade County, FL
Vacancy
8.50%
Lease Rate
$26.40 /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%
$2,583,720
Cap Rate 7%
$1,845,514
Cap Rate 9%
$1,435,400
Alternative Uses
Best Use
Retail
$1.85M
$1.61M – $2.15M
NOI $129,186 @ 7.0% cap · market cap 3.69%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.88M
$3.39M – $4.52M
NOI $271,327 @ 7.0% cap · market cap 7.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,218
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 33030, FL
36,776
Population
11,217
Households
3.3
Avg Household Size
33
Median Age
15%
College-Educated
61%
High-School Grad
17.6 sq mi
ZIP Area
2,090
Density / Sq Mi
$43,231
Median Household Income
$28,214
Median Earnings
$1,307
Median Rent
$382,200
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Storefront property - 7,640 SF commercial building on Krome Ave, Homestead, FL
Where is this storefront property located?
The property is located at 505 N Krome Ave Homestead, FL.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Prime location directly on Krome Ave in Homestead.; B‑1 zoning suitable for commercial use.; Large 7,640 sq ft building on a 13,500 sq ft lot.
