Pensacola Warehouse with Residential
For Sale
$419,000
2525 Truman Ave, Pensacola, FL 32505
5,500 SF Industrial Building For Sale
Property Size5,500 SF
Lot Size0.51 Acres
Price / SF$76.18
Days on Market573
Property Features for 2525 Truman Ave
General Information
Standard status
Active
Property type
Warehouses, Other industrial properties, Other retail properties, Industrial properties, Retail properties & Spaces
Size
5,500 SF
Net Rentable
2,508 SF
Elevators
N/A
Lot size
0.51 Acres
Building Details
Buildings
2
Stories
1
Listing Agency:
(850) 564-0120
Listed By:
Paul
(850) 564-0120
Added: Feb 6, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This Pensacola, FL property presents an investment opportunity, featuring a renovated 2,500 sq ft residential home and a 3,000 sq ft industrial warehouse. The combined building size is 5,500 square feet. The home is currently rented on a month-to-month basis, providing rental income. Constructed in 2020, the warehouse includes 12-foot ceilings and three drive-in doors. Ample on-site parking is available, with 18-wheeler access. Security features include surveillance cameras, an alarm system, and coded doors. A new fence has been installed. The property is situated on a 0.51-acre lot zoned HDMU, which allows for diverse commercial uses. The warehouse offers 3,000 square feet of space suitable for storage, manufacturing, or other industrial applications.
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
$31,012
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
7.40%
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%
$620,240
$620.2K
Cap Rate 7%
$443,029
$443.0K
Cap Rate 9%
$344,578
$344.6K
Market Conditions
NOI Build-Up for 5,500 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
$49.5K $9.00/SF
− Vacancy
−$5.2K −$0.95/SF
EGI
$44.3K $8.06/SF
− OpEx
−$13.3K −$2.42/SF
NOI
$31.0K $5.64/SF
Area
Escambia County, FL
Vacancy
10.50%
Lease Rate
$9.00 /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%
$620,240
Cap Rate 7%
$443,029
Cap Rate 9%
$344,578
Alternative Uses
Best Use
Retail
$888.0K
$777.0K – $1.04M
NOI $62,162 @ 7.0% cap · market cap 14.84%
Second Best
Warehouse
$600.0K
$525.0K – $700.0K
NOI $42,000 @ 7.0% cap · market cap 10.02%
Theoretical Best
Office A
$1.61M
$1.41M – $1.88M
NOI $112,992 @ 7.0% cap · market cap 26.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
383
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 32505, FL
28,671
Population
12,278
Households
2.3
Avg Household Size
36
Median Age
14%
College-Educated
82%
High-School Grad
13.0 sq mi
ZIP Area
2,205
Density / Sq Mi
$41,039
Median Household Income
$27,950
Median Earnings
$1,053
Median Rent
$120,300
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Warehouse - 5,500 SF Industrial Building For Sale
Where is this warehouse located?
The property is located at 2525 Truman Ave Pensacola, FL.
What is the asking price?
The asking price for this property is $419,000.
