Value-Add Commercial Property For
For Sale
$998,000
1620 W Cervantes St, Pensacola, FL 32501
Two buildings on 1.25 acres, ideal for retail/industrial redevelopment.
Property Size15,589 SF
Lot Size1.25 Acres
Price / SF$83.24
Days on Market165
Property Features for 1620 W Cervantes St
General Information
Standard status
Active
Size
15,589 SF
Lot size
1.25 Acres
Property subtype
Retail
Building Details
Building Size
15,589 SF
Year Built
1948
Listing Agency:
SVN | SouthLand Commercial Pensacola
(850) 380-3344
Listed By:
Michael Carro, CCIM · License #FL #BK3179263
(850) 380-3344
Source:
Svn
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 18 at 5:33AM
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 SVN | SouthLand Commercial Pensacola
Investment Insights
Based on property information with market context.
This commercial property includes two buildings on approximately 1.25 acres, suitable for retail, service, or light industrial purposes. The 11,989 square-foot retail building has been fully gutted and is ready for redevelopment, with sewer already in place. It can be divided into up to seven individual retail suites. Additionally, there is a 3,600 square-foot warehouse featuring 20-foot clear heights, a grade-level roll-up door at the front, and a dock-high loading door at the rear, making it suitable for distribution, storage, or contractor use. Both buildings are in shell condition, lacking electrical, plumbing, and mechanical systems. The property is located on a busy east-west corridor near downtown Pensacola, with an AADT of 15,900. The property consists of four combined lots.
Key Highlights
- Value‑add commercial property priced to sell at $63.75/SF.
- Includes a large 11,989± SF retail building ready for redevelopment and a 3,600± SF warehouse.
- Retail building can be divided into up to seven individual suites, with sewer already in place.
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
$91,552
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
9.17%
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%
$1,831,040
$1.8M
Cap Rate 7%
$1,307,886
$1.3M
Cap Rate 9%
$1,017,244
$1.0M
Market Conditions
NOI Build-Up for 11,989 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
$119.4K $9.96/SF
− Vacancy
−$11.7K −$0.98/SF
EGI
$107.7K $8.98/SF
− OpEx
−$16.2K −$1.35/SF
NOI
$91.6K $7.64/SF
Area
Escambia County, FL
Vacancy
9.80%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
15.00%
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%
$1,831,040
Cap Rate 7%
$1,307,886
Cap Rate 9%
$1,017,244
Alternative Uses
Best Use
Retail
$1.94M
$1.69M – $2.26M
NOI $135,502 @ 7.0% cap · market cap 13.58%
Second Best
Warehouse
$1.31M
$1.14M – $1.53M
NOI $91,552 @ 7.0% cap · market cap 9.17%
Theoretical Best
Office A
$3.52M
$3.08M – $4.11M
NOI $246,303 @ 7.0% cap · market cap 24.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
796
Businesses Nearby
Explore this area
Business Placement
Demographics for 32501, FL
10,960
Population
5,505
Households
2
Avg Household Size
41
Median Age
30%
College-Educated
86%
High-School Grad
3.7 sq mi
ZIP Area
2,962
Density / Sq Mi
$39,127
Median Household Income
$31,312
Median Earnings
$964
Median Rent
$277,500
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?
Retail space - Two buildings on 1.25 acres, ideal for retail/industrial redevelopment.
Where is this retail space located?
The property is located at 1620 W Cervantes St Pensacola, FL.
What is the asking price?
The asking price for this property is $998,000.
What are key features of this property?
This property features: Value‑add commercial property priced to sell at $63.75/SF.; Includes a large 11,989± SF retail building ready for redevelopment and a 3,600± SF warehouse.; Retail building can be divided into up to seven individual suites, with sewer already in place.
