Brick Retail Building with Pylon
For Sale
Contact for pricing
2561 PASS RD, Biloxi, MS 39531
Four leased spaces include a long-term restaurant and renovated medical/professional offices in a brick 1.5-story building.
Property Size8,992 SF
Price / SF$122.33
Days on Market54
Property Features for 2561 PASS RD
General Information
Standard status
Active
Size
8,992 SF
Property subtype
Hospitality, Mixed Use
Building Details
Year Built
1995
Listing Agency:
Southeast Commercial Real Estate Services Gulfport
(228) 224-4777
Listed By:
Victoria Chambers · License #MS S- 48764
Source:
Crexi
Added: Jun 15
Changed: Jul 10
Last Checked: Aug 6 at 7:20AM
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 Southeast Commercial Real Estate Services Gulfport
Investment Insights
Based on property information with market context.
This brick, 1.5-story retail building (constructed in 1995) is designed for multiple occupants, with four individual spaces. Unit A is a 4,067-square-foot restaurant currently occupied by a long-term tenant. Units B, C, and D have been recently renovated for medical office use and professional office space, with layouts that include a waiting room, reception area, and offices. The property also features a new pylon sign to support visibility.
Located at 2561 Pass Road in Biloxi, Mississippi, the building is positioned on a 34,220-square-foot lot and benefits from strong exposure with approximately 28,000 average annual daily traffic. The surrounding area includes national, regional, and local businesses.
For buyers or tenants looking for established space with complementary uses, the mix of restaurant and medical/professional office configurations provides a practical layout for day-to-day operations. FEMA Flood Zone X indicates minimal flood risk. Current annual property tax is listed at $10,950.22, slightly above the prior year’s $10,849.03. Please call to schedule a showing and review the current leasing arrangements.
Located at 2561 Pass Road in Biloxi, Mississippi, the building is positioned on a 34,220-square-foot lot and benefits from strong exposure with approximately 28,000 average annual daily traffic. The surrounding area includes national, regional, and local businesses.
For buyers or tenants looking for established space with complementary uses, the mix of restaurant and medical/professional office configurations provides a practical layout for day-to-day operations. FEMA Flood Zone X indicates minimal flood risk. Current annual property tax is listed at $10,950.22, slightly above the prior year’s $10,849.03. Please call to schedule a showing and review the current leasing arrangements.
Key Highlights
- Brick 1.5‑story retail building built in 1995 on a 34,220 SF lot at 2561 Pass Road in Biloxi, MS
- Four leased spaces: Unit A is a 4,067 SF restaurant with a long‑term tenant
- Units B, C, and D recently renovated for medical office/professional office use with waiting rooms, reception, and offices
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
$100,315
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
9.12%
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%
$2,006,300
$2.0M
Cap Rate 7%
$1,433,071
$1.4M
Cap Rate 9%
$1,114,611
$1.1M
Market Conditions
NOI Build-Up for 8,992 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
$143.5K $15.96/SF
− Vacancy
−$9.8K −$1.09/SF
EGI
$133.8K $14.87/SF
− OpEx
−$33.4K −$3.72/SF
NOI
$100.3K $11.16/SF
Area
Harrison County, MS
Vacancy
6.80%
Lease Rate
$15.96 /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%
$2,006,300
Cap Rate 7%
$1,433,071
Cap Rate 9%
$1,114,611
Alternative Uses
Best Use
Healthcare Medical
$1.45M
$1.27M – $1.69M
NOI $101,403 @ 7.0% cap · market cap 9.22%
Second Best
Specialty Retail
$1.43M
$1.25M – $1.67M
NOI $100,315 @ 7.0% cap · market cap 9.12%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
735
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 39531, MS
19,965
Population
9,660
Households
2.1
Avg Household Size
36
Median Age
34%
College-Educated
91%
High-School Grad
6.6 sq mi
ZIP Area
3,025
Density / Sq Mi
$54,599
Median Household Income
$37,293
Median Earnings
$1,066
Median Rent
$193,700
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Similar Off Market Nearby
- King Buffet — 227 Eisenhower Dr, Biloxi, MS 39531
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Four leased spaces include a long-term restaurant and renovated medical/professional offices in a brick 1.5-story building.
Where is this conventional restaurant located?
The property is located at 2561 PASS RD Biloxi, MS.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Brick 1.5‑story retail building built in 1995 on a 34,220 SF lot at 2561 Pass Road in Biloxi, MS; Four leased spaces: Unit A is a 4,067 SF restaurant with a long‑term tenant; Units B, C, and D recently renovated for medical office/professional office use with waiting rooms, reception, and offices
