Two-Story Retail Building with
For Sale
$2,700,000
2440 Palm Ridge Road Sanibel, Sanibel, FL 33957
Two-story retail building with 175 feet of frontage and a fully leased first floor for immediate income.
Property Size8,132 SF
Price / SF$332.02
Days on Market54
Property Features for 2440 Palm Ridge Road Sanibel
General Information
Standard status
Active
Size
8,132 SF
Zoning
Town Center Limited
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$25,869
Amenities
true
2
0.632
Appraiser
Building Details
Year Built
1980
Stories
2
Construction
steel-reinforced concrete slab and concrete stem wall footings
Listing Agency:
(904) 569-5862
Listed By:
Tory Atkins
(904) 569-5862
Source:
Movetojacksonville
Added: Jul 1
Changed: Aug 22
Last Checked: Aug 22 at 3:31AM
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 Tory Atkins
Investment Insights
Based on property information with market context.
This income-producing two-story commercial building is positioned for strong street visibility and includes a fully leased first floor. Each level offers 4,066 square feet, providing flexibility for an owner or future use changes. The structure is built with steel-reinforced concrete slab and concrete stem wall footings, designed for long-term durability and low maintenance. The second floor includes architectural plans already prepared for residential potential, subject to City approval. The building is currently being repainted, and doors are being replaced on the second floor.
The property is located in Sanibel’s Central Business District with 175 feet of frontage on Palm Ridge Road. It is zoned Town Center Limited and is designated G (Altered Lands) under the City of Sanibel Comprehensive Land Use Plan.
The property is located in Sanibel’s Central Business District with 175 feet of frontage on Palm Ridge Road. It is zoned Town Center Limited and is designated G (Altered Lands) under the City of Sanibel Comprehensive Land Use Plan.
Key Highlights
- Two‑story commercial building in Sanibel’s Central Business District with 175 ft of Palm Ridge Road frontage and visibility
- Fully leased first floor for immediate, stable income; second floor offers 4,066 SF of space
- Each level includes 4,066 SF, totaling 8,132 SF of rentable space
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
$106,678
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
3.95%
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%
$2,133,560
$2.1M
Cap Rate 7%
$1,523,971
$1.5M
Cap Rate 9%
$1,185,311
$1.2M
Market Conditions
NOI Build-Up for 8,132 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
$157.1K $19.32/SF
− Vacancy
−$4.7K −$0.58/SF
EGI
$152.4K $18.74/SF
− OpEx
−$45.7K −$5.62/SF
NOI
$106.7K $13.12/SF
Area
Lee County, FL
Vacancy
3.00%
Lease Rate
$19.32 /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%
$2,133,560
Cap Rate 7%
$1,523,971
Cap Rate 9%
$1,185,311
Alternative Uses
Best Use
Retail
$1.52M
$1.33M – $1.78M
NOI $106,678 @ 7.0% cap · market cap 3.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.56M
$2.24M – $2.99M
NOI $179,164 @ 7.0% cap · market cap 6.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
392
Businesses Nearby
Explore this area
Business Placement
Demographics for 33957, FL
6,382
Population
8,525
Households
0.7
Avg Household Size
68
Median Age
62%
College-Educated
99%
High-School Grad
16.2 sq mi
ZIP Area
394
Density / Sq Mi
$122,730
Median Household Income
$44,840
Median Earnings
$747
Median Rent
$912,200
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Two-story retail building with 175 feet of frontage and a fully leased first floor for immediate income.
Where is this retail space located?
The property is located at 2440 Palm Ridge Road Sanibel Sanibel, FL.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: Two‑story commercial building in Sanibel’s Central Business District with 175 ft of Palm Ridge Road frontage and visibility; Fully leased first floor for immediate, stable income; second floor offers 4,066 SF of space; Each level includes 4,066 SF, totaling 8,132 SF of rentable space
