Divided Retail
For Sale
$499,000
1820 NE 2ND Street, Gainesville, FL 32609
Commercial Sale, GAINESVILLE, FL
Property Size2,173 SF
Lot Size0.42 Acres
Price / SF$229.64
Days on Market1040
Property Features for 1820 NE 2ND Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
BUS
Security features
Security System
Subdivision
MCCOYS COMM CENTER
Directions
From N Main Street turn north on NE 16th Ave then left on NE 2nd Street. The property will be on your left
Standard status
Active
APN
10072-003-002
Size
2,173 SF
Lot size
0.42 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
MCCOYS COMMERCIAL PARK PB H-9 N 99.14 FT OF S 378.77 FT MEAS ON W/L OF LOT 3 W OF NE 2ND ST OR 3971/1377
Tax Annual Amount
4965
Legal Description
MCCOYS COMMERCIAL PARK PB H-9 N 99.14 FT OF S 378.77 FT MEAS ON W/L OF LOT 3 W OF NE 2ND ST OR 3971/1377
Utilities
Cooling system
Central Air
Amenities
handicap accessible
lobby
waiting area
kitchen
bathrooms
Building Details
Year built
1976
Floors in Building
1
Building materials
Stucco
Listing Agency:
BHGRE THOMAS GROUP · Better Homes and Gardens Real Estate
(352) 226-8228
Listed By:
Gigi Tajalli · License #3160332
(352) 281-0001
Added: Oct 23, 2023
Changed: Aug 24
Last Checked: Aug 27 at 2:06PM
MLS# GC517028
Copyright © 2026 Stellar MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This stucco retail property contains 2,173 square feet of H/C space within a 0.42-acre site. The interior is arranged into two distinct areas, with the primary portion offering three smaller rooms, a larger room, a lobby and waiting area, kitchen space, and restroom facilities that include a shower. A separately accessed office includes a recently added half bath. The building is handicap accessible and has central air conditioning.
Constructed in 1976, the property is located at 1820 NE 2nd Street in Gainesville, Florida. BUS zoning is identified for the site, providing a defined commercial setting for the existing retail configuration.
Constructed in 1976, the property is located at 1820 NE 2nd Street in Gainesville, Florida. BUS zoning is identified for the site, providing a defined commercial setting for the existing retail configuration.
Key Highlights
- 2,173 H/C sq ft building on a .42 acre site
- Two distinct interior sections with a separate office
- Primary area includes 3 small rooms, a large room, lobby, kitchen space, and restroom facilities
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
$27,106
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
5.43%
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%
$542,120
$542.1K
Cap Rate 7%
$387,229
$387.2K
Cap Rate 9%
$301,178
$301.2K
Market Conditions
NOI Build-Up for 2,173 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
$43.0K $19.80/SF
− Vacancy
−$6.9K −$3.17/SF
EGI
$36.1K $16.63/SF
− OpEx
−$9.0K −$4.16/SF
NOI
$27.1K $12.47/SF
Area
Gainesville, FL
Vacancy
16.00%
Lease Rate
$19.80 /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%
$542,120
Cap Rate 7%
$387,229
Cap Rate 9%
$301,178
Alternative Uses
Best Use
Office B
$387.2K
$338.8K – $451.8K
NOI $27,106 @ 7.0% cap · market cap 5.43%
Second Best
Retail
$329.1K
$288.0K – $384.0K
NOI $23,040 @ 7.0% cap · market cap 4.62%
Theoretical Best
Office A
$538.2K
$470.9K – $627.9K
NOI $37,675 @ 7.0% cap · market cap 7.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,147
Businesses Nearby
Explore this area
Business Placement
Demographics for 32609, FL
18,322
Population
8,515
Households
2.2
Avg Household Size
38
Median Age
27%
College-Educated
87%
High-School Grad
117.5 sq mi
ZIP Area
156
Density / Sq Mi
$48,121
Median Household Income
$34,041
Median Earnings
$1,159
Median Rent
$174,500
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?
Retail space - Two connected business areas provide adaptable rooms, a lobby, restroom facilities, kitchen space, and a separate office.
Where is this retail space located?
The property is located at 1820 NE 2ND Street Gainesville, FL.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: 2,173 H/C sq ft building on a .42 acre site; Two distinct interior sections with a separate office; Primary area includes 3 small rooms, a large room, lobby, kitchen space, and restroom facilities
