Sanibel Island Commercial Property For
For Sale
$1,495,000
2341 Palm Ridge Rd A B C, Sanibel, FL 33957
Highly visible commercial property in Sanibel Island's Town Center.
Property Size2,827 SF
Price / SF$528.83
Days on Market81
Property Features for 2341 Palm Ridge Rd A B C
General Information
Standard status
Active
Size
2,827 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$4,180
Building Details
Year Built
1988
Stories
1
Listing Agency:
Portside Property Group
(239) 940-9787
Listed By:
Kenneth King · License #280596880
(239) 940-9787
Source:
Elliman
Added: May 20
Changed: Aug 8
Last Checked: Aug 8 at 7:30AM
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 Portside Property Group
Investment Insights
Based on property information with market context.
This commercial property is located in the heart of Sanibel Island’s Town Center corridor, near CVS and Sanibel City Center. The building offers approximately 2,827 square feet of space with accessibility, visibility, and 22 on-site parking spaces. The existing layout includes multiple private offices, conference space, a reception area, a kitchenette, restrooms, and flexible work areas. It is suitable for a variety of professional and commercial uses including legal, financial, consulting, design, real estate, wellness, and other service-oriented businesses. The property consists of three separate folios/units currently operating as one combined space with a long-standing professional office occupant. Current occupancy provides immediate income with future flexibility for an owner-user, investor, continued tenancy, or potential multi-suite configuration. Historical records and prior marketing reference Units A, B & C with separate folios and individual tax parcels. Positioned just off Periwinkle Way within one of Sanibel’s established commercial corridors, this is an opportunity to secure a well-located island commercial asset with long-term value and flexibility.
Key Highlights
- Prime location in the heart of Sanibel Island's Town Center corridor, near CVS and Sanibel City Center.
- High visibility commercial property with excellent accessibility and 22 on‑site parking spaces.
- Consists of three separate folios/units (Units A, B & C) offering flexibility for multi‑suite configuration or individual sale.
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
$48,582
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
3.25%
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%
$971,640
$971.6K
Cap Rate 7%
$694,029
$694.0K
Cap Rate 9%
$539,800
$539.8K
Market Conditions
NOI Build-Up for 2,827 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
$70.6K $24.96/SF
− Vacancy
−$5.8K −$2.05/SF
EGI
$64.8K $22.91/SF
− OpEx
−$16.2K −$5.73/SF
NOI
$48.6K $17.18/SF
Area
Lee County, FL
Vacancy
8.20%
Lease Rate
$24.96 /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%
$971,640
Cap Rate 7%
$694,029
Cap Rate 9%
$539,800
Alternative Uses
Best Use
Office B
$694.0K
$607.3K – $809.7K
NOI $48,582 @ 7.0% cap · market cap 3.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$889.8K
$778.6K – $1.04M
NOI $62,284 @ 7.0% cap · market cap 4.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
395
Businesses Nearby
Explore this area
Business Placement
Demographics for 33957, FL
6,382
Population
8,525
Households
0.7
Avg Household Size
68
Median Age
62%
College-Educated
99%
High-School Grad
16.2 sq mi
ZIP Area
394
Density / Sq Mi
$122,730
Median Household Income
$44,840
Median Earnings
$747
Median Rent
$912,200
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 - Highly visible commercial property in Sanibel Island's Town Center.
Where is this office building located?
The property is located at 2341 Palm Ridge Rd A B C Sanibel, FL.
What is the asking price?
The asking price for this property is $1,495,000.
What are key features of this property?
This property features: Prime location in the heart of Sanibel Island's Town Center corridor, near CVS and Sanibel City Center.; High visibility commercial property with excellent accessibility and **22 on‑site parking spaces**.; Consists of three separate folios/units (Units A, B & C) offering flexibility for multi‑suite configuration or individual sale.
