Five-Office Commercial Condominium
New
For Sale
$599,000
1421 First Street #2, Key West, FL 33040
Professional office condominium with five private offices, a restroom, and a flexible working layout.
Property Size1,160 SF
Price / SF$516.38
Days on Market3
Property Features for 1421 First Street #2
General Information
Standard status
Active
Size
1,160 SF
Zoning
CL - Limited Commercial
Taxes and HOA fees
Annual Taxes
$9,579
Building Details
Building Size
1,160 SF
Year Built
1948
Listing Agency:
Berkshire Hathaway HomeServices Knight & Gardner Realty
(305) 902-2447
Listed By:
Team Gardner/Langley · License #BK612006
(305) 902-2447
Source:
Laerrealty
Added: Aug 20
Changed: Aug 21
Last Checked: Aug 22 at 3:50AM
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 Berkshire Hathaway HomeServices Knight & Gardner Realty
Investment Insights
Based on property information with market context.
Unit 2 is a 1,160-square-foot commercial condominium configured for professional office use. The interior includes five private offices, one restroom, and a practical layout that supports office-based operations. The property was built in 1948 and is identified as CL - Limited Commercial zoning.
Located at 1421 First Street in Key West, the unit offers a centrally situated commercial address. Its existing office configuration can accommodate an owner-user or an investor seeking a commercial condominium asset, subject to applicable zoning and use requirements.
Located at 1421 First Street in Key West, the unit offers a centrally situated commercial address. Its existing office configuration can accommodate an owner-user or an investor seeking a commercial condominium asset, subject to applicable zoning and use requirements.
Key Highlights
- 1,160 SF commercial condominium unit
- Five private offices and one restroom
- Currently configured for professional office use
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
$21,872
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
3.65%
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%
$437,440
$437.4K
Cap Rate 7%
$312,457
$312.5K
Cap Rate 9%
$243,022
$243.0K
Market Conditions
NOI Build-Up for 1,160 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
$34.8K $30.00/SF
− Vacancy
−$5.6K −$4.86/SF
EGI
$29.2K $25.14/SF
− OpEx
−$7.3K −$6.29/SF
NOI
$21.9K $18.86/SF
Area
Monroe County, FL
Vacancy
16.20%
Lease Rate
$30.00 /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%
$437,440
Cap Rate 7%
$312,457
Cap Rate 9%
$243,022
Alternative Uses
Best Use
Office B
$312.5K
$273.4K – $364.5K
NOI $21,872 @ 7.0% cap · market cap 3.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$466.6K
$408.3K – $544.4K
NOI $32,662 @ 7.0% cap · market cap 5.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,411
Businesses Nearby
Explore this area
Business Placement
Demographics for 33040, FL
35,958
Population
19,001
Households
1.9
Avg Household Size
44
Median Age
38%
College-Educated
92%
High-School Grad
17.7 sq mi
ZIP Area
2,032
Density / Sq Mi
$79,038
Median Household Income
$42,458
Median Earnings
$2,079
Median Rent
$766,400
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 units - Professional office condominium with five private offices, a restroom, and a flexible working layout.
Where is this office units located?
The property is located at 1421 First Street #2 Key West, 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: 1,160 SF commercial condominium unit; Five private offices and one restroom; Currently configured for professional office use
