Fenced Flex Property with
For Sale
$1,150,000
2135 E 3rd Street, Panama City, FL 32401
Commercial for Sale, Panama City, FL
Property Size6,200 SF
Lot Size1.26 Acres
Price / SF$185.48
Days on Market181
Property Features for 2135 E 3rd Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
ND
Directions
Headed East from Downtown Panama City, take E Fourth Street going East over the bridge, continue on E Fourth street all the way until the end where it come to the light on E 5th Street (or also called Business 98). Take a right onto E 5th Street until you get to the intersection of E 5th Street and Sherman Ave. Property will be located on your left, store front is Bob's Top Shop.
Subdivision
27 - Bay County
Special listing conditions
In Foreclosure, Real Estate Owned
Standard status
Active
APN
22518-000-000
Lot size
1.26 Acres
Taxes and HOA fees
Tax Description
Welch Addbeg At Se Cor Lot 11 Th N 204'W 139' S 50' E 50' S 154' E89'
Legal Description
Welch Addbeg At Se Cor Lot 11 Th N 204'W 139' S 50' E 50' S 154' E89'
Listing Agency:
Compass
(850) 296-9769
Listed By:
Katilyn M Scott · License #3359031
(850) 819-5695
Added: Mar 16
Changed: Sep 11
Last Checked: Sep 12 at 6:06AM
MLS# 1011123
Copyright © 2026 Emerald Coast Association of Realtors. 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 1.26-acre flex property combines approximately 6,200 square feet of building area with a separate 1,500-square-foot heated and cooled welding workshop. The primary building includes reception space, two offices, three bathrooms, an open 52'5'' x 32' work area, and a 43' x 44' receiving and logistics section. The receiving area is unfinished but has dedicated HVAC and two roll-up doors, while the welding shop also includes roll-up doors. Newer HVAC systems and a 2019 metal roof are in place.
The fully fenced corner parcel provides 388 feet of highway frontage, two access points, and an AADT of 19,300 vehicles. ND zoning allows commercial, residential, and mixed-use development. The property is within the Millville Downtown District and a Community Redevelopment Agency district. Parcels 22284-000-000 and 22704-000-000 are being sold together.
The fully fenced corner parcel provides 388 feet of highway frontage, two access points, and an AADT of 19,300 vehicles. ND zoning allows commercial, residential, and mixed-use development. The property is within the Millville Downtown District and a Community Redevelopment Agency district. Parcels 22284-000-000 and 22704-000-000 are being sold together.
Key Highlights
- 1.26‑acre corner parcel with 388' of highway frontage
- Approximately 6,200 square feet of primary building space
- Separate 1,500‑square‑foot heated and cooled welding workshop
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
$57,839
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
5.03%
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%
$1,156,780
$1.2M
Cap Rate 7%
$826,271
$826.3K
Cap Rate 9%
$642,656
$642.7K
Market Conditions
NOI Build-Up for 6,200 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
$96.7K $15.60/SF
− Vacancy
−$7.7K −$1.25/SF
EGI
$89.0K $14.35/SF
− OpEx
−$31.1K −$5.02/SF
NOI
$57.8K $9.33/SF
Area
Walton County, FL
Vacancy
8.00%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
35.00%
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%
$1,156,780
Cap Rate 7%
$826,271
Cap Rate 9%
$642,656
Alternative Uses
Best Use
Flex RnD
$826.3K
$723.0K – $964.0K
NOI $57,839 @ 7.0% cap · market cap 5.03%
Second Best
Mixed Use
$820.6K
$718.0K – $957.3K
NOI $57,439 @ 7.0% cap · market cap 4.99%
Theoretical Best
Office A
$1.56M
$1.36M – $1.82M
NOI $109,145 @ 7.0% cap · market cap 9.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
279
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - ND zoning accommodates commercial, residential, and mixed-use development options on a prominent corner site.
Where is this flex space located?
The property is located at 2135 E 3rd Street Panama City, FL.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: 1.26‑acre corner parcel with 388' of highway frontage; Approximately 6,200 square feet of primary building space; Separate 1,500‑square‑foot heated and cooled welding workshop
