Downtown Lake Worth Commercial
For Sale
Contact for pricing
Pending
202 N Federal Hwy, Lake Worth, FL 33460
Freestanding commercial building in the heart of Downtown Lake Worth.
Property Size5,411 SF
Lot Size0.45 Acres
Days on Market101
Property Features for 202 N Federal Hwy
General Information
Standard status
Pending
Size
5,411 SF
Class
B
Lot size
0.45 Acres
Property subtype
Office, Hospitality, Mixed Use
Zoning
MU-E Mixed Use East
Building Details
Year Built
1929
Year Renovated
2022
Buildings
1
Stories
1
Units
18
Listing Agency:
Strategic Realty Services
(561) 471-5353
Listed By:
Christopher Fleming · License #FL BK441500
Source:
Crexi
Added: May 21
Changed: Aug 8
Last Checked: Jul 24 at 3:47PM
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 Strategic Realty Services
Investment Insights
Based on property information with market context.
Located at 202 N Federal Hwy, Lake Worth Beach, FL 33460, this property presents a unique opportunity to acquire a highly visible freestanding commercial building in the heart of Downtown Lake Worth Beach. Situated on the northeast corner of North Federal Highway and 2nd Avenue N, this signalized corner site offers exceptional frontage, access, and exposure. The property features a 5,411 SF one-story commercial building on a 0.45-acre (19,602 SF) lot, with approximately 150 feet of frontage on Federal Highway and 130 feet on 2nd Avenue N. Currently configured as a non-medical office building, the site includes on-building signage, 20 surface parking spaces with room for more, open ceilings, exposed smooth concrete floors, and three HVAC units. Constructed in 1929 and located in Flood Zone X, the property is zoned MU-E (Mixed Use East), providing outstanding flexibility for various uses, including retail, restaurant, coffee shop, financial services, professional office, gym, day spa, pet grooming, school, church, lodging, and multifamily residential up to 30 units per acre. This asset is an ideal opportunity for an owner-user, investor, or redevelopment play in one of South Florida’s vibrant downtown markets.
Key Highlights
- Prime Downtown Lake Worth Beach location on Federal Highway.
- Versatile MU‑E zoning allows for retail, restaurant, office, residential, and more.
- Freestanding 5,411 SF commercial building on a 0.45‑acre lot with on‑building signage.
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
$143,419
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
6.24%
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%
$2,868,380
$2.9M
Cap Rate 7%
$2,048,843
$2.0M
Cap Rate 9%
$1,593,544
$1.6M
Market Conditions
NOI Build-Up for 5,411 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
$246.7K $45.60/SF
− Vacancy
−$55.5K −$10.26/SF
EGI
$191.2K $35.34/SF
− OpEx
−$47.8K −$8.84/SF
NOI
$143.4K $26.51/SF
Area
Palm Beach County, FL
Vacancy
22.50%
Lease Rate
$45.60 /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%
$2,868,380
Cap Rate 7%
$2,048,843
Cap Rate 9%
$1,593,544
Alternative Uses
Best Use
Office B
$2.05M
$1.79M – $2.39M
NOI $143,419 @ 7.0% cap · market cap 6.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.81M
$3.33M – $4.45M
NOI $266,751 @ 7.0% cap · market cap 11.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,714
Businesses Nearby
Explore this area
Business Placement
Demographics for 33460, FL
36,409
Population
14,769
Households
2.5
Avg Household Size
36
Median Age
24%
College-Educated
72%
High-School Grad
4.7 sq mi
ZIP Area
7,747
Density / Sq Mi
$61,702
Median Household Income
$32,388
Median Earnings
$1,411
Median Rent
$333,200
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 - Freestanding commercial building in the heart of Downtown Lake Worth.
Where is this office building located?
The property is located at 202 N Federal Hwy Lake Worth, FL.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: Prime Downtown Lake Worth Beach location on Federal Highway.; Versatile MU‑E zoning allows for retail, restaurant, office, residential, and more.; Freestanding 5,411 SF commercial building on a 0.45‑acre lot with on‑building signage.
