Office Building with Central
For Sale
$225,000
2228 W Palmetto St., Florence, SC 29501
COMMERCIAL/INDUSTRIAL, Florence, SC
Property Size1,405 SF
Lot Size0.31 Acres
Price / SF$160.14
Days on Market103
Property Features for 2228 W Palmetto St.
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
FLORENCE
Standard status
Active
Size
1,405 SF
Lot size
0.31 Acres
Utilities
Heating system
Heat Pump (Heating)
Cooling system
Central Air
Building Details
Flooring type
Wood
Building materials
Wood Frame
Listing Agency:
C/B McMillan and Assoc. · Coldwell Banker Real Estate
(843) 667-1100
Listed By:
Ross McMillan · License #SC140676
(843) 601-7710
Added: Jun 3
Changed: Aug 19
Last Checked: Sep 13 at 10:06AM
MLS# 2601742
Copyright © 2026 Pee Dee Realtor Association. 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 1,405-square-foot office building occupies a 0.31-acre lot in Florence, South Carolina. The improvements use wood-frame construction and include wood flooring, heat-pump heating, and central air conditioning. The building’s scale is suited to office operations and professional business use.
The property fronts W Palmetto St. within an active commercial corridor characterized by established businesses and steady daily traffic. Its Florence location provides access to major roadways, while the surrounding commercial setting supports visibility for an office-oriented operation.
The property fronts W Palmetto St. within an active commercial corridor characterized by established businesses and steady daily traffic. Its Florence location provides access to major roadways, while the surrounding commercial setting supports visibility for an office-oriented operation.
Key Highlights
- 1,405‑square‑foot office building
- 0.31‑acre lot
- Frontage along W Palmetto St. in Florence, SC
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
$11,087
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
4.93%
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%
$221,740
$221.7K
Cap Rate 7%
$158,386
$158.4K
Cap Rate 9%
$123,189
$123.2K
Market Conditions
NOI Build-Up for 1,405 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
$17.7K $12.60/SF
− Vacancy
−$2.9K −$2.08/SF
EGI
$14.8K $10.52/SF
− OpEx
−$3.7K −$2.63/SF
NOI
$11.1K $7.89/SF
Area
Florence County, SC
Vacancy
16.50%
Lease Rate
$12.60 /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%
$221,740
Cap Rate 7%
$158,386
Cap Rate 9%
$123,189
Alternative Uses
Best Use
Office B
$158.4K
$138.6K – $184.8K
NOI $11,087 @ 7.0% cap · market cap 4.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$207.1K
$181.3K – $241.7K
NOI $14,500 @ 7.0% cap · market cap 6.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
775
Businesses Nearby
Explore this area
Business Placement
Demographics for 29501, SC
46,528
Population
20,713
Households
2.2
Avg Household Size
40
Median Age
33%
College-Educated
93%
High-School Grad
52.4 sq mi
ZIP Area
888
Density / Sq Mi
$70,618
Median Household Income
$46,246
Median Earnings
$995
Median Rent
$220,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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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 - Wood-frame office property with wood flooring, heat-pump heating, and a central air-conditioning system.
Where is this office building located?
The property is located at 2228 W Palmetto St. Florence, SC.
What is the asking price?
The asking price for this property is $225,000.
What are key features of this property?
This property features: 1,405‑square‑foot office building; 0.31‑acre lot; Frontage along W Palmetto St. in Florence, SC
