Waterfront Office
For Sale
$2,950,000
220 Mckenzie Avenue, Panama City, FL 32401
CommercialSale, Panama City, FL
Property Size10,157 SF
Lot Size1.10 Acres
Price / SF$290.44
Days on Market244
Property Features for 220 Mckenzie Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
City, General Commercial
Accessibility
Accessible Approach with Ramp
Subdivision
No Named Subdivision
Elementary school
Cherry Street
Middle school
Jinks
High school
Bay
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.
Standard status
Active
APN
20156-000-000
Size
10,157 SF
Lot size
1.10 Acres
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
Sewer type
Public Sewer
Heating system
Electric (Heating), Central
Water front features
Ocean Access
Water front
1
Amenities
dock and pier
landscaped grounds
waterfront views
Building Details
Year built
1986
Floors in Building
2
Building materials
Brick, BrickVeneer, Concrete
Roof type
Shingle
Listing Agency:
Counts Real Estate Group Inc
(850) 249-3615
Listed By:
Chris S McCall · License #0666647
(850) 814-9889
Added: Jan 1
Changed: Aug 19
Last Checked: Sep 2 at 11:06PM
MLS# 783267
Copyright © 2026 Central Panhandle 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 10,157-square-foot office building occupies 1.1 acres and provides a substantial two-story layout for professional operations. The interior includes 18 private offices, two conference rooms, a law library, open administrative and paralegal areas, workspace, a breakroom, and reception. Brick-veneer masonry construction, extensive wood detailing, and large windows define the building. It was built in 1986 and renovated in 2019 with storm-rated impact windows and doors, a new roof, HVAC systems, and flooring.
The property fronts Massalina Bayou with approximately +/-550 linear feet of waterfront. A submerged land lease supports deep-water dock space, including a large pier and wooden dock capable of accommodating several large boats. The bayou provides access toward St. Andrew Bay and the Gulf of America. The Bay County Courthouse is located less than 300' up McKenzie Avenue. Public sewer, central electric heating, and an accessible ramp are also in place.
The property fronts Massalina Bayou with approximately +/-550 linear feet of waterfront. A submerged land lease supports deep-water dock space, including a large pier and wooden dock capable of accommodating several large boats. The bayou provides access toward St. Andrew Bay and the Gulf of America. The Bay County Courthouse is located less than 300' up McKenzie Avenue. Public sewer, central electric heating, and an accessible ramp are also in place.
Key Highlights
- 10,157‑square‑foot, two‑story office building on 1.1 acres
- 18 private offices, 2 conference rooms, law library, reception, and administrative workspace
- 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
Property Profile
Current Use
Lease Details
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
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 - Two-story office property with private offices, conference rooms, a law library, and direct water 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 on 1.1 acres; 18 private offices, 2 conference rooms, law library, reception, and administrative workspace; Approximately +/-550 linear feet of waterfront on Massalina Bayou
