Professional Office Building For
For Sale
$2,900,000
1904 THOMAS AVENUE, Leesburg, FL 34748
First-class professional office building with established income and value-add opportunity.
Property Size16,194 SF
Price / SF$179.08
Days on Market509
Property Features for 1904 THOMAS AVENUE
General Information
Standard status
Active
Size
16,194 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$36,163
Building Details
Year Built
2009
Listing Agency:
MORRIS REALTY AND INVESTMENTS
Listed By:
Scott Strem · License #3106245
(352) 435-4663
Source:
Exitrealty
Added: Apr 15, 2025
Changed: Sep 1
Last Checked: Sep 5 at 7:55AM
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 MORRIS REALTY AND INVESTMENTS
Investment Insights
Based on property information with market context.
This 19,278 square foot professional office building offers an outstanding opportunity for investors or owner-users. The building features established income with two of the three units tenant-occupied under NNN leases. A value-add opportunity exists with a 3,000 square foot mezzanine that could be finished and leased for additional income. Upgrades include new A/C units for units 2 and 3, high-speed data lines, LED lighting, a PA system with white noise, and security/fire alarms. The building is fully sprinkled. The vacant Unit 1, comprising approximately 5,300 square feet, features a beautiful entrance and impressive floor-to-ceiling glass lobby, suitable for various uses, including customer service or call centers, healthcare services, institutional purposes, schools, churches, or corporate headquarters. Unit 1 also includes a spacious kitchen/breakroom area and several large rooms for classrooms, conference rooms, or private offices. The property provides ample parking with over 90 spaces and easy access along the main road. Located in the heart of Central Florida, less than an hour from Orlando or Ocala, and minutes from The Villages, I-75, FL Turnpike, and US Hwy 441 and 27. The location is near the future expansion of The Villages along SR 44, less than 5 miles to the west. Over 500 new residential units are under construction across the street. Leesburg has a population of 23,297 residents and attracts more than 50,000 people to work each weekday.
Key Highlights
- Established income from tenant‑occupied units with NNN leases, offering immediate ROI.
- Value‑add opportunity with a 3,000 sq ft mezzanine for potential additional income.
- Vacant 5,300 sq ft Unit 1 is turnkey ready with a high‑end lobby and flexible layout suitable for various businesses.**
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
$241,938
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
8.34%
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%
$4,838,760
$4.8M
Cap Rate 7%
$3,456,257
$3.5M
Cap Rate 9%
$2,688,200
$2.7M
Market Conditions
NOI Build-Up for 16,194 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
$388.7K $24.00/SF
− Vacancy
−$66.1K −$4.08/SF
EGI
$322.6K $19.92/SF
− OpEx
−$80.6K −$4.98/SF
NOI
$241.9K $14.94/SF
Area
Lake County, FL
Vacancy
17.00%
Lease Rate
$24.00 /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%
$4,838,760
Cap Rate 7%
$3,456,257
Cap Rate 9%
$2,688,200
Alternative Uses
Best Use
Office B
$3.46M
$3.02M – $4.03M
NOI $241,938 @ 7.0% cap · market cap 8.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.61M
$4.03M – $5.38M
NOI $322,584 @ 7.0% cap · market cap 11.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
439
Businesses Nearby
Explore this area
Business Placement
Demographics for 34748, FL
45,481
Population
25,740
Households
1.8
Avg Household Size
60
Median Age
24%
College-Educated
90%
High-School Grad
39.4 sq mi
ZIP Area
1,154
Density / Sq Mi
$53,768
Median Household Income
$30,762
Median Earnings
$1,181
Median Rent
$226,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - First-class professional office building with established income and value-add opportunity.
Where is this office building located?
The property is located at 1904 THOMAS AVENUE Leesburg, FL.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: Established income from tenant‑occupied units with NNN leases, offering immediate ROI.; Value‑add opportunity with a 3,000 sq ft mezzanine for potential additional income.; Vacant 5,300 sq ft Unit 1 is turnkey ready with a high‑end lobby and flexible layout suitable for various businesses.**
