Medical Office
For Sale
Contact for pricing
2261 Sarno Road, Melbourne, FL 32935
Vacant medical office with concrete block construction and a stucco exterior.
Property Size3,220 SF
Price / SF$154.97
Days on Market11
Property Features for 2261 Sarno Road
General Information
Standard status
Active
Size
3,220 SF
Property subtype
Office
Building Details
Year Built
1959
Units
1
Construction
concrete block
Listing Agency:
JM Real Estate
(321) 242-2882
Listed By:
Terry Winton
Source:
Crexi
Added: Jul 28
Changed: Aug 3
Last Checked: Aug 6 at 2:06PM
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 JM Real Estate
Investment Insights
Based on property information with market context.
This 3,220-square-foot medical office property is currently vacant and was previously configured for dental office use. The building features concrete block construction with a stucco exterior and dates to 1959.
Located at 2261 Sarno Road in Melbourne, Florida, the property offers an existing medical-office setting for a future occupant or owner-user. Its current vacancy provides flexibility for evaluating the space and its prior dental-office configuration.
Located at 2261 Sarno Road in Melbourne, Florida, the property offers an existing medical-office setting for a future occupant or owner-user. Its current vacancy provides flexibility for evaluating the space and its prior dental-office configuration.
Key Highlights
- 3,220‑square‑foot medical office property
- Currently vacant
- Previously used as a dental office
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
$43,818
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
8.78%
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%
$876,360
$876.4K
Cap Rate 7%
$625,971
$626.0K
Cap Rate 9%
$486,867
$486.9K
Market Conditions
NOI Build-Up for 3,220 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
$69.6K $21.60/SF
− Vacancy
−$11.1K −$3.46/SF
EGI
$58.4K $18.14/SF
− OpEx
−$14.6K −$4.54/SF
NOI
$43.8K $13.61/SF
Area
Brevard County, FL
Vacancy
16.00%
Lease Rate
$21.60 /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%
$876,360
Cap Rate 7%
$625,971
Cap Rate 9%
$486,867
Alternative Uses
Best Use
Office B
$626.0K
$547.7K – $730.3K
NOI $43,818 @ 7.0% cap · market cap 8.78%
Second Best
Healthcare Medical
$578.9K
$506.6K – $675.4K
NOI $40,526 @ 7.0% cap · market cap 8.12%
Theoretical Best
Office A
$849.5K
$743.3K – $991.1K
NOI $59,467 @ 7.0% cap · market cap 11.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
613
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 32935, FL
41,837
Population
20,338
Households
2.1
Avg Household Size
44
Median Age
28%
College-Educated
94%
High-School Grad
13.1 sq mi
ZIP Area
3,194
Density / Sq Mi
$63,841
Median Household Income
$38,094
Median Earnings
$1,404
Median Rent
$240,500
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?
Medical Office Space - Vacant medical office with concrete block construction and a stucco exterior.
Where is this medical office space located?
The property is located at 2261 Sarno Road Melbourne, FL.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: 3,220‑square‑foot medical office property; Currently vacant; Previously used as a dental office
