Waterfront Two-Story Office
For Sale
$2,950,000
220 Mckenzie Avenue, Panama City, FL 32401
Commercial for Sale, Panama City, FL
Property Size10,157 SF
Lot Size1.00 Acre
Price / SF$290.44
Days on Market254
Property Features for 220 Mckenzie Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
From Harrison Avenue, take E. 4th Street toward the Bay County Courthouse, turn right (south) on McKenzie Avenue to the end. The Barron & Redding Law Office is on the left.
Subdivision
27 - Bay County
Standard status
Active
APN
20156-000-000
Lot size
1.00 Acre
Taxes and HOA fees
Tax Description
9 4S 14W -3- 70A BEG 200' E, 10' S, 100' E, 60' S, 25' E OF NW COR OF NW1/4 OF SW1/4 OF SEC FOR POB TH S 118.75' SE 150' SE 105' TO WATERS EDGE TH ELY & NLY ALG WATERS EDGE 460' M/L TH W 215' M/L TO POB. ORB 1059 P 1296 ORB 1336 P 1588
Legal Description
9 4S 14W -3- 70A BEG 200' E, 10' S, 100' E, 60' S, 25' E OF NW COR OF NW1/4 OF SW1/4 OF SEC FOR POB TH S 118.75' SE 150' SE 105' TO WATERS EDGE TH ELY & NLY ALG WATERS EDGE 460' M/L TH W 215' M/L TO POB. ORB 1059 P 1296 ORB 1336 P 1588
Utilities
Water front
1
Amenities
deep-water dock
landscaping
water views
Listing Agency:
Counts Real Estate Group Inc
(850) 249-3615
Listed By:
Christopher S McCall · License #666647
(850) 814-9889
Added: Jan 1
Changed: Sep 11
Last Checked: Sep 12 at 3:06AM
MLS# 992263
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 two-story office building contains 10,157 square feet with 18 private offices, two conference rooms, a law library, open administrative workspace, a breakroom, and reception areas. Masonry construction with brick veneer is complemented by extensive wood detailing in the attorney offices, conference rooms, and library. The property was built in 1986 and renovated in 2019 with storm-rated impact windows and doors, a replacement roof, new HVAC systems, and new flooring.
The site includes approximately 550 linear feet along Massalina Bayou and a submerged land lease supporting deep-water dock space. A large pier and wooden dock can accommodate several large boats. The property is adjacent to the Bay County Courthouse, with the courthouse located less than 300 feet up McKenzie Avenue. Mature oak trees and established landscaping surround the building.
The site includes approximately 550 linear feet along Massalina Bayou and a submerged land lease supporting deep-water dock space. A large pier and wooden dock can accommodate several large boats. The property is adjacent to the Bay County Courthouse, with the courthouse located less than 300 feet up McKenzie Avenue. Mature oak trees and established landscaping surround the building.
Key Highlights
- 10,157‑square‑foot, two‑story office building
- 18 private offices plus 2 conference rooms and a law library
- Approximately 550 linear feet of waterfront on Massalina Bayou
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
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Current Use
Lease Details
1
Office units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,638
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
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Masonry office property with private offices, conference rooms, a law library, and direct waterfront access.
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: 10,157‑square‑foot, two‑story office building; 18 private offices plus 2 conference rooms and a law library; Approximately 550 linear feet of waterfront on Massalina Bayou
