Prestigious Law Office
For Sale
$2,950,000
220 Mckenzie Avenue, Panama City, FL 32401
Class A office building near Bay County Courthouse.
Property Size10,157 SF
Lot Size1.00 Acre
Price / SF$290.44
Days on Market219
Property Features for 220 Mckenzie Avenue
General Information
Standard status
Active
Size
10,157 SF
Lot size
1.00 Acre
Property subtype
Commercial
Listing Agency:
COUNTS REAL ESTATE GROUP INC
(850) 249-3615
Listed By:
CHRISTOPHER S MCCALL · License #666647
Source:
Corcoran
Added: Jan 6
Changed: Aug 8
Last Checked: Aug 8 at 6:06AM
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 COUNTS REAL ESTATE GROUP INC
Investment Insights
Based on property information with market context.
This Class A law office building, formerly the Barron Redding Law Office, is available for sale in Panama City, Florida. Located adjacent to the Bay County Courthouse on Massalina Bayou, the two-story office building offers 10,157 square feet of space on a 1.1-acre lot. Constructed in 1986 and renovated in 2019 after Hurricane Michael, the masonry building features brick veneer and large windows. Interior details include extensive wood moldings, paneling, and trim throughout the attorney's offices, conference rooms, and law library. The layout comprises 18 private offices, two conference rooms, a law library, an open office area for paralegals and administration, workspace, a large breakroom, and a reception area. Renovations following the hurricane included new storm-rated impact windows and doors, a new roof, new HVAC systems, and new flooring. The property includes approximately 550 linear waterfront feet on Massalina Bayou, with a submerged land lease in place providing deep-water dock space, a large pier, and a wooden dock suitable for multiple large boats. The location offers views across Massalina Bayou. The Bay County Courthouse is located less than 300 feet from the property on McKenzie Avenue. Mature oak trees enhance the landscaping.
Key Highlights
- Prime location adjacent to the Bay County Courthouse with waterfront access.
- Deep‑water dock with a large pier capable of accommodating several large boats.
- Extensive renovations completed in 2019, including new storm‑rated impact windows and doors, roof, HVAC systems, and flooring.
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
$127,978
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
4.34%
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%
$2,559,560
$2.6M
Cap Rate 7%
$1,828,257
$1.8M
Cap Rate 9%
$1,421,978
$1.4M
Market Conditions
NOI Build-Up for 10,157 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
$213.3K $21.00/SF
− Vacancy
−$42.7K −$4.20/SF
EGI
$170.6K $16.80/SF
− OpEx
−$42.7K −$4.20/SF
NOI
$128.0K $12.60/SF
Area
Walton County, FL
Vacancy
20.00%
Lease Rate
$21.00 /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%
$2,559,560
Cap Rate 7%
$1,828,257
Cap Rate 9%
$1,421,978
Alternative Uses
Best Use
Office B
$1.83M
$1.60M – $2.13M
NOI $127,978 @ 7.0% cap · market cap 4.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.55M
$2.24M – $2.98M
NOI $178,804 @ 7.0% cap · market cap 6.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,466
Businesses Nearby
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
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 - Class A office building near Bay County Courthouse.
Where is this office building located?
The property is located at 220 Mckenzie Avenue Panama City, FL.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Prime location adjacent to the Bay County Courthouse with waterfront access.; Deep‑water dock with a large pier capable of accommodating several large boats.; Extensive renovations completed in 2019, including new storm‑rated impact windows and doors, roof, HVAC systems, and flooring.
