Two-Story Mixed-Use
New
For Sale
$999,900
2865 E BAY DRIVE, Largo, FL 33771
LARGO, FL
Property Size6,020 SF
Price / SF$166.10
Days on Market2
Property Features for 2865 E BAY DRIVE
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
LAKE PALMS SEC 4
Standard status
Active
Size
6,020 SF
Building Details
Year built
1958
Listing Agency:
Engel & Volkers Belleair · Engel & Völkers
(727) 461-1000
Listed By:
Kelly Montgomery-Kepler · License #647245
Added: Aug 28
Changed: Aug 29
Last Checked: Aug 29 at 12:06PM
MLS# TB8535497
Copyright © 2026 Engel & Völkers. 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 6,020-square-foot, two-story concrete block building combines commercial space with a separate residential component. The first floor includes retail and office areas along with warehouse space, while the upper level contains an 800 SF, one-bedroom, one-bath apartment. A garage door connects to an adjacent +/-1,000 SF warehouse with two roll-up doors, a fenced and paved yard, and a remotely controlled gate for secured equipment and vehicle storage.
The property fronts East Bay Drive with 75 feet of frontage and includes an 8' x 9.5' illuminated monument sign and glass storefront. Commercial General (CG) zoning supports the stated potential for retail, professional or medical office, personal or home services, and trade contractor uses. Built in 1958, the property is approximately 3 miles from US Highway 19, 4.5 miles from St. Pete/Clearwater Airport, 3 miles from Largo City Hall, and 5 miles from the Gulf beaches. It is not in a flood zone.
The property fronts East Bay Drive with 75 feet of frontage and includes an 8' x 9.5' illuminated monument sign and glass storefront. Commercial General (CG) zoning supports the stated potential for retail, professional or medical office, personal or home services, and trade contractor uses. Built in 1958, the property is approximately 3 miles from US Highway 19, 4.5 miles from St. Pete/Clearwater Airport, 3 miles from Largo City Hall, and 5 miles from the Gulf beaches. It is not in a flood zone.
Key Highlights
- 6,020‑square‑foot, two‑story concrete block mixed‑use building
- Commercial General (CG) zoning
- 800 SF, 1‑bedroom/1‑bath apartment on the second 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
$74,768
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
7.48%
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%
$1,495,360
$1.5M
Cap Rate 7%
$1,068,114
$1.1M
Cap Rate 9%
$830,756
$830.8K
Market Conditions
NOI Build-Up for 6,020 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
$130.0K $21.60/SF
− Vacancy
−$10.4K −$1.73/SF
EGI
$119.6K $19.87/SF
− OpEx
−$44.9K −$7.45/SF
NOI
$74.8K $12.42/SF
Area
Pinellas County, FL
Vacancy
8.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,495,360
Cap Rate 7%
$1,068,114
Cap Rate 9%
$830,756
Alternative Uses
Best Use
Office B
$1.34M
$1.17M – $1.56M
NOI $93,469 @ 7.0% cap · market cap 9.35%
Second Best
Mixed Use
$1.07M
$934.6K – $1.25M
NOI $74,768 @ 7.0% cap · market cap 7.48%
Theoretical Best
Office A
$1.57M
$1.37M – $1.83M
NOI $109,609 @ 7.0% cap · market cap 10.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Drive-in doors
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
856
Businesses Nearby
Explore this area
Business Placement
Demographics for 33771, FL
29,766
Population
16,898
Households
1.8
Avg Household Size
54
Median Age
25%
College-Educated
90%
High-School Grad
6.0 sq mi
ZIP Area
4,961
Density / Sq Mi
$60,139
Median Household Income
$40,417
Median Earnings
$1,379
Median Rent
$145,600
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?
Mixed-use property - Concrete block property combines retail, office, warehouse, and live/work capabilities under Commercial General zoning.
Where is this mixed-use property located?
The property is located at 2865 E BAY DRIVE Largo, FL.
What is the asking price?
The asking price for this property is $999,900.
What are key features of this property?
This property features: 6,020‑square‑foot, two‑story concrete block mixed‑use building; Commercial General (CG) zoning; 800 SF, 1‑bedroom/1‑bath apartment on the second floor
