Historic Conventional
For Sale
$350,000
2117 E 3rd Street, Panama City, FL 32401
Mixed-use zoning supports restaurant and bar operations with indoor seating and an outdoor gathering area.
Property Size1,918 SF
Price / SF$182.48
Days on Market53
Property Features for 2117 E 3rd Street
General Information
Standard status
Active
Size
1,918 SF
Property subtype
Commercial
Building Details
Year Built
1925
Listing Agency:
KELLER WILLIAMS SUCCESS REALTY
(850) 249-0313
Listed By:
JIMMY DEAN · License #SL3531681
Source:
Corcoran
Added: Jun 26
Changed: Aug 16
Last Checked: Aug 16 at 5:37AM
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 KELLER WILLIAMS SUCCESS REALTY
Investment Insights
Based on property information with market context.
This 1,918-square-foot commercial property at 2117 E 3rd Street in Panama City includes two parcels and was built in 1925. The building is currently used as a restaurant and drinks bar, with indoor seating and a commercial-style service area supporting daily operations.
A dedicated outdoor gathering space adds room for entertainment, social events, and additional customer seating. The property carries a mixed-use zoning designation and combines restaurant improvements with a long-established commercial presence. Its existing configuration includes the core elements of an operating food-and-beverage venue while retaining the historic character associated with the building’s 1925 construction.
A dedicated outdoor gathering space adds room for entertainment, social events, and additional customer seating. The property carries a mixed-use zoning designation and combines restaurant improvements with a long-established commercial presence. Its existing configuration includes the core elements of an operating food-and-beverage venue while retaining the historic character associated with the building’s 1925 construction.
Key Highlights
- 1,918‑square‑foot property on two parcels
- Built in 1925
- Currently operating as a restaurant and drinks bar
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
$29,207
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%
$584,140
$584.1K
Cap Rate 7%
$417,243
$417.2K
Cap Rate 9%
$324,522
$324.5K
Market Conditions
NOI Build-Up for 1,918 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
$41.4K $21.60/SF
− Vacancy
−$2.5K −$1.30/SF
EGI
$38.9K $20.30/SF
− OpEx
−$9.7K −$5.08/SF
NOI
$29.2K $15.23/SF
Area
Walton County, FL
Vacancy
6.00%
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%
$584,140
Cap Rate 7%
$417,243
Cap Rate 9%
$324,522
Alternative Uses
Best Use
Specialty Retail
$417.2K
$365.1K – $486.8K
NOI $29,207 @ 7.0% cap · market cap 8.34%
Second Best
Mixed Use
$253.8K
$222.1K – $296.2K
NOI $17,769 @ 7.0% cap · market cap 5.08%
Theoretical Best
Office A
$482.3K
$422.1K – $562.7K
NOI $33,764 @ 7.0% cap · market cap 9.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
231
Businesses Nearby
5k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar General
Shops & Services
4,953 visits/mo
0.3 miles
Demographics for 32401, FL
20,487
Population
10,239
Households
2
Avg Household Size
42
Median Age
20%
College-Educated
86%
High-School Grad
12.5 sq mi
ZIP Area
1,639
Density / Sq Mi
$49,901
Median Household Income
$35,885
Median Earnings
$1,194
Median Rent
$207,000
Median Home Value
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - Mixed-use zoning supports restaurant and bar operations with indoor seating and an outdoor gathering area.
Where is this conventional restaurant located?
The property is located at 2117 E 3rd Street Panama City, FL.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 1,918‑square‑foot property on two parcels; Built in 1925; Currently operating as a restaurant and drinks bar
