Retail Strip Center with
For Sale
$2,300,000
1238 16th St, Vero Beach, FL 32960
Retail center paired with a rear storage and warehouse building, offering multiple commercial components within one property.
Property Size11,800 SF
Price / SF$194.92
Days on Market10
Property Features for 1238 16th St
General Information
Standard status
Active
Size
11,800 SF
Property subtype
Shopping Strip
Additional Details
Warehouse Space
4,000 SF
Amenities
Two Buildings Totaling 11,800 Rentable SF Situated on Large 1.5 Acre Parcel
Ideal Owner/User Opportunity | 6,300 SF of Recently Vacated Retail Space Available for Occupancy in a Tight Submarket
In-Place Cashflow from One Retail Tenant and the Storage/Warehouse Building to Offset Carry Costs in Meantime (See Agent for Financial Info)
Direct Frontage, Access & Monument Signate on 16th Street (13,100 AADT) | One Mile East of the Subject Property 16th Street Becomes the Alma Lee Loy Bridge, Providing Immediate Access to the Beach
Average Market Retail Rents Pushing $22/SF NNN in Immediate Area
National Retails in the Immediate Area Include Walmart Neighborhood Market, Publix, Chick-fil-A, The Fresh Market, McDonald's, Ulta Beauty & More…
5-Mile Demographics: 98,000 Population & $97,000 Average Household Income
Building Details
Building Size
11,800 SF
Year Built
1979
Buildings
2
Listing Agency:
Marcus & Millichap - Orlando
(407) 557-3808
Listed By:
Brendan Ryan · License #License(s): FL: SL3653122
(407) 557-3808
Source:
Marcusmillichap
Added: Aug 22
Changed: Aug 30
Last Checked: Aug 30 at 1:10PM
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 Marcus & Millichap - Orlando
Investment Insights
Based on property information with market context.
This retail strip center includes 7,800 SF of retail space, complemented by a separate 4,000 SF storage and warehouse building positioned behind it. Together, the improvements provide 11,800 SF of commercial building area across retail and storage-oriented components.
Built in 1979, the property is located at 1238 16th St in Vero Beach, Florida. The combination of customer-facing retail space and dedicated rear warehouse capacity creates a varied commercial layout within a single asset.
Built in 1979, the property is located at 1238 16th St in Vero Beach, Florida. The combination of customer-facing retail space and dedicated rear warehouse capacity creates a varied commercial layout within a single asset.
Key Highlights
- 7,800 SF retail strip center
- Separate 4,000 SF storage and warehouse building
- 11,800 SF total property size
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
$113,369
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
4.93%
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%
$2,267,380
$2.3M
Cap Rate 7%
$1,619,557
$1.6M
Cap Rate 9%
$1,259,656
$1.3M
Market Conditions
NOI Build-Up for 11,800 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
$177.0K $15.00/SF
− Vacancy
−$15.0K −$1.28/SF
EGI
$162.0K $13.73/SF
− OpEx
−$48.6K −$4.12/SF
NOI
$113.4K $9.61/SF
Area
Indian River County, FL
Vacancy
8.50%
Lease Rate
$15.00 /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%
$2,267,380
Cap Rate 7%
$1,619,557
Cap Rate 9%
$1,259,656
Alternative Uses
Best Use
Retail
$1.62M
$1.42M – $1.89M
NOI $113,369 @ 7.0% cap · market cap 4.93%
Second Best
Warehouse
$1.36M
$1.19M – $1.59M
NOI $95,104 @ 7.0% cap · market cap 4.13%
Theoretical Best
Specialty Retail
$2.59M
$2.26M – $3.02M
NOI $181,145 @ 7.0% cap · market cap 7.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,540
Businesses Nearby
Explore this area
Business Placement
Demographics for 32960, FL
21,522
Population
11,590
Households
1.9
Avg Household Size
48
Median Age
25%
College-Educated
90%
High-School Grad
11.1 sq mi
ZIP Area
1,939
Density / Sq Mi
$52,350
Median Household Income
$30,236
Median Earnings
$1,171
Median Rent
$254,400
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?
Strip mall - Retail center paired with a rear storage and warehouse building, offering multiple commercial components within one property.
Where is this strip mall located?
The property is located at 1238 16th St Vero Beach, FL.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: 7,800 SF retail strip center; Separate 4,000 SF storage and warehouse building; 11,800 SF total property size
