Renovated Single-Story Office
For Sale
$375,000
1840 Sarno Road, Melbourne, FL 32935
Flexible professional workspace with private offices, meeting areas, multiple bathrooms, and accessible accommodations.
Property Size1,991 SF
Price / SF$188.35
Days on Market417
Property Features for 1840 Sarno Road
General Information
Standard status
Active
Size
1,991 SF
Total Parking Spaces
6
Property subtype
General Commercial
Amenities
3
.20
Building Details
Buildings
1
Stories
1
Listing Agency:
Ohana Real Estate Co.
(772) 538-6864
Listed By:
Allen Kavanaugh · License #B26040794
(772) 538-6864
Source:
Xome
Added: Jul 11, 2025
Changed: Aug 31
Last Checked: Aug 31 at 2:31AM
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 Ohana Real Estate Co.
Investment Insights
Based on property information with market context.
This renovated, single-story office building contains 1,991 square feet of professional workspace. The interior supports a flexible arrangement of private offices, collaborative work areas, and meeting rooms, along with three bathrooms and an ADA-compliant office. The property is suited to a range of professional service operations, including medical, legal, design, consulting, and wellness uses, as described in the source information.
Parking includes six dedicated spaces, with two ADA-compliant spaces. The building’s accessible office and parking accommodations provide practical functionality for occupants and visitors, while the adaptable interior allows the workspace to be organized around different office, meeting, and collaboration needs.
Parking includes six dedicated spaces, with two ADA-compliant spaces. The building’s accessible office and parking accommodations provide practical functionality for occupants and visitors, while the adaptable interior allows the workspace to be organized around different office, meeting, and collaboration needs.
Key Highlights
- 1,991‑square‑foot renovated office building
- Single‑story layout with private offices, collaboration areas, and meeting rooms
- Six dedicated parking spaces, including two ADA‑compliant spots
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
$27,094
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
7.23%
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%
$541,880
$541.9K
Cap Rate 7%
$387,057
$387.1K
Cap Rate 9%
$301,044
$301.0K
Market Conditions
NOI Build-Up for 1,991 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 $21.60/SF
− Vacancy
−$6.9K −$3.46/SF
EGI
$36.1K $18.14/SF
− OpEx
−$9.0K −$4.54/SF
NOI
$27.1K $13.61/SF
Area
Brevard County, FL
Vacancy
16.00%
Lease Rate
$21.60 /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%
$541,880
Cap Rate 7%
$387,057
Cap Rate 9%
$301,044
Alternative Uses
Best Use
Office B
$387.1K
$338.7K – $451.6K
NOI $27,094 @ 7.0% cap · market cap 7.23%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$525.3K
$459.6K – $612.8K
NOI $36,770 @ 7.0% cap · market cap 9.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
916
Businesses Nearby
Explore this area
Business Placement
Demographics for 32935, FL
41,837
Population
20,338
Households
2.1
Avg Household Size
44
Median Age
28%
College-Educated
94%
High-School Grad
13.1 sq mi
ZIP Area
3,194
Density / Sq Mi
$63,841
Median Household Income
$38,094
Median Earnings
$1,404
Median Rent
$240,500
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?
Office building - Flexible professional workspace with private offices, meeting areas, multiple bathrooms, and accessible accommodations.
Where is this office building located?
The property is located at 1840 Sarno Road Melbourne, FL.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: 1,991‑square‑foot renovated office building; Single‑story layout with private offices, collaboration areas, and meeting rooms; Six dedicated parking spaces, including two ADA‑compliant spots
