Prime Tallahassee Retail Investment
For Sale
$950,000
220 W Tennessee St., Tallahassee, FL 32303
4,846 SF former restaurant building near Florida State University.
Property Size4,846 SF
Price / SF$196.04
Days on Market283
Property Features for 220 W Tennessee St.
General Information
Standard status
Active
Size
4,846 SF
Property subtype
Retail
Building Details
Building Size
4,846 SF
Year Built
1969
Listing Agency:
NAI TALCOR - Tallahassee
(850) 545-5649
Listed By:
Jim Taube, CCIM · License #672081
(850) 545-5649
Source:
Naiglobal
Added: Nov 21, 2025
Changed: Aug 21
Last Checked: Aug 30 at 1:27PM
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 NAI TALCOR - Tallahassee
Investment Insights
Based on property information with market context.
Located at 220 W. Tennessee St. in Tallahassee, FL, this property offers a retail investment opportunity. The 4,846 SF building previously operated as a restaurant and is situated on a high-traffic corner. The location is four blocks from the Florida State Capitol Building and three blocks from Florida State University. The "Central Core" (CC) zoning allows for a variety of commercial uses, including restaurants, banks, hotels, auto rentals, or high-density residential development up to 150 units per acre. The property is located on the NE corner of Tennessee and Bronough Streets in a high-traffic location with 38,300 AADT. With other redevelopment projects taking place nearby, this property offers potential for redevelopment.
Key Highlights
- Prime location in the heart of Tallahassee, near the State Capitol and Florida State University
- High‑traffic corner location with 38,300 AADT
- Intense Commercial (CC) Zoning allows for diverse uses
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
$55,346
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
5.83%
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%
$1,106,920
$1.1M
Cap Rate 7%
$790,657
$790.7K
Cap Rate 9%
$614,956
$615.0K
Market Conditions
NOI Build-Up for 4,846 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
$78.5K $16.20/SF
− Vacancy
−$4.7K −$0.97/SF
EGI
$73.8K $15.23/SF
− OpEx
−$18.4K −$3.81/SF
NOI
$55.3K $11.42/SF
Area
Tallahassee, FL
Vacancy
6.00%
Lease Rate
$16.20 /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%
$1,106,920
Cap Rate 7%
$790,657
Cap Rate 9%
$614,956
Alternative Uses
Best Use
Specialty Retail
$790.7K
$691.8K – $922.4K
NOI $55,346 @ 7.0% cap · market cap 5.83%
Second Best
Retail
$672.4K
$588.3K – $784.5K
NOI $47,067 @ 7.0% cap · market cap 4.95%
Theoretical Best
Office A
$1.19M
$1.04M – $1.39M
NOI $83,162 @ 7.0% cap · market cap 8.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,051
Businesses Nearby
81k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 60%
Hotels & Casinos 25%
Shops & Services 16%
McDonald's
Dining
25,784 visits/mo
0.5 miles
Starbucks
Dining
13,133 visits/mo
0.3 miles
DoubleTree by Hilton Hotel Tallahassee
Hotels & Casinos
12,422 visits/mo
0.4 miles
Popeyes Louisiana Kitchen
Dining
9,807 visits/mo
0.2 miles
Four Points by Sheraton, Tallahassee Downtown
Hotels & Casinos
7,674 visits/mo
0.0 miles
Demographics for 32303, FL
48,644
Population
24,864
Households
2
Avg Household Size
34
Median Age
46%
College-Educated
95%
High-School Grad
34.8 sq mi
ZIP Area
1,398
Density / Sq Mi
$63,123
Median Household Income
$37,702
Median Earnings
$1,324
Median Rent
$204,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Restaurant - 4,846 SF former restaurant building near Florida State University.
Where is this restaurant located?
The property is located at 220 W Tennessee St. Tallahassee, FL.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Prime location in the heart of Tallahassee, near the State Capitol and Florida State University; High‑traffic corner location with 38,300 AADT; Intense Commercial (CC) Zoning allows for diverse uses
