Two-Story Mixed-Use
For Sale
$2,700,000
2440 Palm Ridge Road, Sanibel, FL 33957
COMMERCIAL - Sanibel, FL
Property Size8,132 SF
Lot Size0.63 Acres
Price / SF$332.02
Days on Market181
Property Features for 2440 Palm Ridge Road
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
TCG
Subdivision
SI01 - Sanibel Island
Standard status
Active
APN
26-46-22-T2-0030E.0060
Lot size
0.63 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
PALM RIDGE BLK E PB 23 PG 57 LOTS 6 + 5
Tax Annual Amount
25869
Legal Description
PALM RIDGE BLK E PB 23 PG 57 LOTS 6 + 5
Utilities
Water front features
Lake
Water front
1
Building Details
Year built
1980
Floors in Building
2
Listing Agency:
Royal Shell Real Estate, Inc.
(239) 472-0078
Listed By:
Tina DiCharia · License #280596822
(239) 340-5636
Added: Feb 8
Changed: Aug 4
Last Checked: Aug 8 at 6:06AM
MLS# 2026002508
Copyright © 2026 Florida Gulf Coast Multiple Listing Service, Inc. 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 two-story mixed-use building contains 4,066 square feet on each level and is positioned for ongoing commercial use. The first floor is fully leased, while the upper level includes prepared architectural plans for potential residential conversion, subject to City approval. The structure features a steel-reinforced concrete slab and concrete stem wall footings, supporting a durable, low-maintenance design. Repainting is underway, and second-floor doors are being replaced.
The property occupies 0.632 acres in Sanibel's Central Business District, with 175 feet of frontage along Palm Ridge Road. It is zoned Town Center Limited and carries a G (Altered Lands) designation under the City of Sanibel Comprehensive Land Use Plan. The site also includes a lake waterfront feature.
The property occupies 0.632 acres in Sanibel's Central Business District, with 175 feet of frontage along Palm Ridge Road. It is zoned Town Center Limited and carries a G (Altered Lands) designation under the City of Sanibel Comprehensive Land Use Plan. The site also includes a lake waterfront feature.
Key Highlights
- 4,066 square feet on each of two levels
- 175 feet of frontage on Palm Ridge Road
- Fully leased first floor
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
$106,678
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
3.95%
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%
$2,133,560
$2.1M
Cap Rate 7%
$1,523,971
$1.5M
Cap Rate 9%
$1,185,311
$1.2M
Market Conditions
NOI Build-Up for 8,132 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
$157.1K $19.32/SF
− Vacancy
−$4.7K −$0.58/SF
EGI
$152.4K $18.74/SF
− OpEx
−$45.7K −$5.62/SF
NOI
$106.7K $13.12/SF
Area
Lee County, FL
Vacancy
3.00%
Lease Rate
$19.32 /SF/Yr
Expense Ratio
30.00%
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%
$2,133,560
Cap Rate 7%
$1,523,971
Cap Rate 9%
$1,185,311
Alternative Uses
Best Use
Retail
$1.52M
$1.33M – $1.78M
NOI $106,678 @ 7.0% cap · market cap 3.95%
Second Best
Mixed Use
$1.43M
$1.25M – $1.67M
NOI $100,329 @ 7.0% cap · market cap 3.72%
Theoretical Best
Office A
$2.56M
$2.24M – $2.99M
NOI $179,164 @ 7.0% cap · market cap 6.64%
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 Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - The first floor is fully leased, while Town Center Limited zoning supports the property's commercial setting.
Where is this mixed-use property located?
The property is located at 2440 Palm Ridge Road Sanibel, FL.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: 4,066 square feet on each of two levels; 175 feet of frontage on Palm Ridge Road; Fully leased first floor
