Biloxi Retail Investment
For Sale
Contact for pricing
2585 Pass Rd, Biloxi, MS 39531
Retail building with long-term tenant in prime location.
Property Size5,772 SF
Price / SF$173.08
Days on Market166
Property Features for 2585 Pass Rd
General Information
Standard status
Active
Size
5,772 SF
Property subtype
Retail
Lease Type
NNN
Building Details
Tenancy
Single
Listing Agency:
Southeast Commercial Real Estate Services Gulfport
(228) 547-0707
Listed By:
Tim Carlson · License #MS 13267
Source:
Crexi
Added: Mar 9
Changed: Aug 8
Last Checked: Aug 19 at 10:50PM
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 investment opportunity is located at 2585 Pass Road in Biloxi. The property features a 5,772 square foot retail building, originally constructed in 1987. The building is strategically positioned along Pass Road, a primary commercial corridor known for its strong traffic volume and excellent visibility. The tenant has operated at this location for 40 years and recently signed a new 5-year extension. The lease structure includes two renewal options. Option 1 extends through 2035 with monthly rent of $5,395, while Option 2 extends through 2040 with monthly rent of $5,627.
Key Highlights
- Long‑term tenant with 40‑year history and recent 5‑year lease extension.
- Located on Pass Road, a primary commercial corridor with high traffic and excellent visibility.
- Offered at a 6.00% cap rate, providing stable, passive income.
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
$51,905
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
5.20%
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%
$1,038,100
$1.0M
Cap Rate 7%
$741,500
$741.5K
Cap Rate 9%
$576,722
$576.7K
Market Conditions
NOI Build-Up for 5,772 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
$81.0K $14.04/SF
− Vacancy
−$6.9K −$1.19/SF
EGI
$74.2K $12.85/SF
− OpEx
−$22.2K −$3.85/SF
NOI
$51.9K $8.99/SF
Area
Harrison County, MS
Vacancy
8.50%
Lease Rate
$14.04 /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%
$1,038,100
Cap Rate 7%
$741,500
Cap Rate 9%
$576,722
Alternative Uses
Best Use
Retail
$741.5K
$648.8K – $865.1K
NOI $51,905 @ 7.0% cap · market cap 5.20%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$929.9K
$813.6K – $1.08M
NOI $65,091 @ 7.0% cap · market cap 6.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
757
Businesses Nearby
41k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 70%
Home Improvements & Furnishings 29%
Electronics 1%
Murphy USA
Shops & Services
20,971 visits/mo
0.4 miles
Harbor Freight Tools
Home Improvements & Furnishings
11,979 visits/mo
0.2 miles
Wells Fargo
Shops & Services
6,126 visits/mo
0.3 miles
Valvoline Instant Oil Change
Shops & Services
915 visits/mo
0.1 miles
Firestone Complete Auto Care
Shops & Services
788 visits/mo
0.5 miles
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 Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Retail building with long-term tenant in prime location.
Where is this retail space located?
The property is located at 2585 Pass Rd Biloxi, MS.
What is the asking price?
The asking price for this property is $999,000.
What are key features of this property?
This property features: Long‑term tenant with 40‑year history and recent 5‑year lease extension.; Located on Pass Road, a primary commercial corridor with high traffic and excellent visibility.; Offered at a 6.00% cap rate, providing stable, passive income.
