Downtown Leesburg Professional Office
For Sale
$599,000
Pending
1029 W MAGNOLIA St, Leesburg, FL 34748
Well-maintained office building in downtown Leesburg with tenant in place.
Property Size2,968 SF
Lot Size0.35 Acres
Days on Market143
Property Features for 1029 W MAGNOLIA St
General Information
Standard status
Pending
Size
2,968 SF
Lot size
0.35 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$5,768
Building Details
Building Size
2,968 SF
Year Built
1977
Stories
1
Listing Agency:
RealTeam Realty Inc
(352) 267-6216
Listed By:
Trish Leisner · License #3185853
(352) 267-6216
Source:
Elliman
Added: Mar 24
Changed: Aug 8
Last Checked: Jul 23 at 5:46AM
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 RealTeam Realty Inc
Investment Insights
Based on property information with market context.
This professional office building is located in downtown Leesburg on a corner lot. The building features multiple large offices, including one previously used as a conference room, a storage room in front of a large safe, and three restrooms, one of which includes a shower. A kitchen/breakroom, reception office, customer waiting room, and ample storage and closets are also present. There are 17 parking spaces available. The property is located near a local college, restaurants, and shops. The lot was repaved in 2011. The building was re-roofed and painted in 2020. A 7.5 Ton Rheem Split System central AC unit was installed in 2024, and a mini-split system is located in the computer server room. The building is currently occupied by a tenant with a lease expiring in July 2026, making it suitable for an owner-occupant. The current lease is a modified gross lease with a 7.5 CAP Rate. The property is suitable for either an owner-user or as an investment.
Key Highlights
- Excellent downtown Leesburg location on a corner lot.
- High CAP Rate of 7.5 with current tenant in place until July 2026.
- Ready for owner‑occupant after lease expiration in July 2026.
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
$44,342
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
7.40%
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%
$886,840
$886.8K
Cap Rate 7%
$633,457
$633.5K
Cap Rate 9%
$492,689
$492.7K
Market Conditions
NOI Build-Up for 2,968 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
$71.2K $24.00/SF
− Vacancy
−$12.1K −$4.08/SF
EGI
$59.1K $19.92/SF
− OpEx
−$14.8K −$4.98/SF
NOI
$44.3K $14.94/SF
Area
Lake County, FL
Vacancy
17.00%
Lease Rate
$24.00 /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%
$886,840
Cap Rate 7%
$633,457
Cap Rate 9%
$492,689
Alternative Uses
Best Use
Office B
$633.5K
$554.3K – $739.0K
NOI $44,342 @ 7.0% cap · market cap 7.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$844.6K
$739.0K – $985.4K
NOI $59,123 @ 7.0% cap · market cap 9.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,450
Businesses Nearby
Explore this area
Business Placement
Demographics for 34748, FL
45,481
Population
25,740
Households
1.8
Avg Household Size
60
Median Age
24%
College-Educated
90%
High-School Grad
39.4 sq mi
ZIP Area
1,154
Density / Sq Mi
$53,768
Median Household Income
$30,762
Median Earnings
$1,181
Median Rent
$226,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Well-maintained office building in downtown Leesburg with tenant in place.
Where is this office building located?
The property is located at 1029 W MAGNOLIA St Leesburg, FL.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Excellent downtown Leesburg location on a corner lot.; High CAP Rate of 7.5 with current tenant in place until July 2026.; Ready for owner‑occupant after lease expiration in July 2026.
