Orlando Office Building For
For Sale
$829,900
Pending
422 S ALAFAYA TRAIL 29, Orlando, FL 32828
Office building for sale with 8.78% CAP rate.
Property Size2,562 SF
Days on Market602
Property Features for 422 S ALAFAYA TRAIL 29
General Information
Standard status
Pending
Size
2,562 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$8,034
Building Details
Year Built
2006
Listing Agency:
COMPASS FLORIDA LLC
(407) 203-9441
Listed By:
Ahmad Hassan, PA · License #3305257
(718) 641-9358
Source:
Exitrealty
Added: Jan 10, 2025
Changed: Sep 4
Last Checked: Sep 3 at 3:32AM
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 COMPASS FLORIDA LLC
Investment Insights
Based on property information with market context.
This commercial property is an office building offering 5,215 square feet of space. The property is located in Orlando, Florida and features a capitalization rate of 8.78%.
Key Highlights
- 8.78% CAP rate makes this an excellent investment opportunity.
- Office property offering a great professional space.
- 5,215 SqFt provides ample room for various business needs.
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
$38,276
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
4.61%
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%
$765,520
$765.5K
Cap Rate 7%
$546,800
$546.8K
Cap Rate 9%
$425,289
$425.3K
Market Conditions
NOI Build-Up for 2,562 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
$61.5K $24.00/SF
− Vacancy
−$10.5K −$4.08/SF
EGI
$51.0K $19.92/SF
− OpEx
−$12.8K −$4.98/SF
NOI
$38.3K $14.94/SF
Area
ZIP 32828
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%
$765,520
Cap Rate 7%
$546,800
Cap Rate 9%
$425,289
Alternative Uses
Best Use
Office B
$546.8K
$478.5K – $637.9K
NOI $38,276 @ 7.0% cap · market cap 4.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$729.1K
$637.9K – $850.6K
NOI $51,035 @ 7.0% cap · market cap 6.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
696
Businesses Nearby
Explore this area
Business Placement
Demographics for 32828, FL
68,428
Population
25,728
Households
2.7
Avg Household Size
34
Median Age
52%
College-Educated
95%
High-School Grad
20.8 sq mi
ZIP Area
3,290
Density / Sq Mi
$99,927
Median Household Income
$48,828
Median Earnings
$1,830
Median Rent
$403,700
Median Home Value
Market
Vacancy Rate% for Office in Orlando, FL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building for sale with 8.78% CAP rate.
Where is this office building located?
The property is located at 422 S ALAFAYA TRAIL 29 Orlando, FL.
What is the asking price?
The asking price for this property is $829,900.
What are key features of this property?
This property features: 8.78% CAP rate makes this an excellent investment opportunity.; Office property offering a great professional space.; 5,215 SqFt provides ample room for various business needs.
