Flex Space with
New
For Sale
$1,295,000
Pending
5401 PALMER, Sarasota, FL 34232
Private offices, a conference room, and climate-controlled storage support a range of business operations.
Property Size4,000 SF
Days on Market4
Property Features for 5401 PALMER
General Information
Standard status
Pending
Size
4,000 SF
Property subtype
Industrial
Taxes and HOA fees
Annual Taxes
$10,608
Amenities
professional showroom
three private offices
conference room
climate-controlled storage
storage shed
Building Details
Building Size
4,000 SF
Year Built
1974
Listed By:
Steven Watterson · License #SL3382340
(941) 526-7184
Source:
Elliman
Added: Sep 24
Changed: Sep 26
Last Checked: Sep 26 at 11:36AM
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 Steven Watterson
Investment Insights
Based on property information with market context.
Built in 1974, this flex property combines a client-facing showroom with three private offices and a conference room. Climate-controlled storage is provided inside the building, with an additional shed on the property for equipment, inventory, or supplies.
The property is in Sarasota, Florida.
The property is in Sarasota, Florida.
Key Highlights
- Showroom, three private offices, and a conference room
- Climate‑controlled storage within the building
- Additional on‑site shed for equipment, inventory, or supplies
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
$62,496
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
4.83%
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%
$1,249,920
$1.2M
Cap Rate 7%
$892,800
$892.8K
Cap Rate 9%
$694,400
$694.4K
Market Conditions
NOI Build-Up for 4,000 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
$96.0K $24.00/SF
− Vacancy
−$6.7K −$1.68/SF
EGI
$89.3K $22.32/SF
− OpEx
−$26.8K −$6.70/SF
NOI
$62.5K $15.62/SF
Area
Sarasota County, FL
Vacancy
7.00%
Lease Rate
$24.00 /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%
$1,249,920
Cap Rate 7%
$892,800
Cap Rate 9%
$694,400
Alternative Uses
Best Use
Retail
$892.8K
$781.2K – $1.04M
NOI $62,496 @ 7.0% cap · market cap 4.83%
Second Best
Industrial
$658.9K
$576.6K – $768.8K
NOI $46,126 @ 7.0% cap · market cap 3.56%
Theoretical Best
Office A
$1.14M
$994.7K – $1.33M
NOI $79,578 @ 7.0% cap · market cap 6.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
454
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 34232, FL
34,671
Population
17,248
Households
2
Avg Household Size
47
Median Age
34%
College-Educated
93%
High-School Grad
11.0 sq mi
ZIP Area
3,152
Density / Sq Mi
$81,041
Median Household Income
$44,166
Median Earnings
$1,836
Median Rent
$332,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in South region
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Frequently Asked Questions
What type of property is this?
Flex space - Private offices, a conference room, and climate-controlled storage support a range of business operations.
Where is this flex space located?
The property is located at 5401 PALMER Sarasota, FL.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: Showroom, three private offices, and a conference room; Climate‑controlled storage within the building; Additional on‑site shed for equipment, inventory, or supplies
