Corner Lot Business Office
For Sale
Contact for pricing
Pending
304 W Cervantes St, Pensacola, FL 32501
Business office with corner-lot access, two entrances, and parking areas, plus renovation and roof update.
Property Size1,599 SF
Days on Market220
Property Features for 304 W Cervantes St
General Information
Standard status
Pending
Size
1,599 SF
Property subtype
OFFICE
Zoning
PR-2
Additional Details
Road Access
Yes
Building Details
Year Renovated
2000
Listing Agency:
Berkshire Hathaway Home Services PenFed Realty
(850) 267-0013
Listed By:
Frasier Phelps
(850) 485-2665
Source:
Moodyscre
Added: Feb 9
Changed: Sep 2
Last Checked: Sep 16 at 7:12PM
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 Berkshire Hathaway Home Services PenFed Realty
Investment Insights
Based on property information with market context.
This property is currently utilized as a business office and is configured as a house-style building with flexible layout potential. It can also be adapted into a multi-family setup, including a 2BR/1.5BA unit and a 1BR/1BA unit, or a combination that suits the buyer’s plan.
The property underwent a major renovation in 2000, including a 1,000-square-foot addition built on a built-up slab, and received an update in 2018 that included a new roof. Zoned PR-2 North Hill Preservation Multiple-Family District, the site sits on a corner lot with easy ingress/egress, featuring two parking areas and two entrances—one off Cervantes St and one off Barcelona St.
With the existing office use, substantial renovation history, and two separate access points, this is a practical option for an owner looking to maintain office operations while evaluating residential and rental configurations.
The property underwent a major renovation in 2000, including a 1,000-square-foot addition built on a built-up slab, and received an update in 2018 that included a new roof. Zoned PR-2 North Hill Preservation Multiple-Family District, the site sits on a corner lot with easy ingress/egress, featuring two parking areas and two entrances—one off Cervantes St and one off Barcelona St.
With the existing office use, substantial renovation history, and two separate access points, this is a practical option for an owner looking to maintain office operations while evaluating residential and rental configurations.
Key Highlights
- Corner‑lot business office with easy ingress/egress, 2 parking areas, and 2 entrances (off Cervantes St and off Barcelona St).
- Zoned PR‑2 North Hill Preservation Multiple‑Family District.
- Previously renovated: major 1000 SF addition on built‑up slab in 2000, with an update in 2018 including a new roof.
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
$26,967
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
6.35%
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%
$539,340
$539.3K
Cap Rate 7%
$385,243
$385.2K
Cap Rate 9%
$299,633
$299.6K
Market Conditions
NOI Build-Up for 1,599 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
$40.1K $25.08/SF
− Vacancy
−$4.1K −$2.59/SF
EGI
$36.0K $22.49/SF
− OpEx
−$9.0K −$5.62/SF
NOI
$27.0K $16.87/SF
Area
Escambia County, FL
Vacancy
10.34%
Lease Rate
$25.08 /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%
$539,340
Cap Rate 7%
$385,243
Cap Rate 9%
$299,633
Alternative Uses
Best Use
Office B
$385.2K
$337.1K – $449.5K
NOI $26,967 @ 7.0% cap · market cap 6.35%
Second Best
Apartment 5plus
$206.4K
$180.6K – $240.8K
NOI $14,447 @ 7.0% cap · market cap 3.40%
Theoretical Best
Office A
$469.3K
$410.6K – $547.5K
NOI $32,850 @ 7.0% cap · market cap 7.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,552
Businesses Nearby
Explore this area
Business Placement
Demographics for 32501, FL
10,960
Population
5,505
Households
2
Avg Household Size
41
Median Age
30%
College-Educated
86%
High-School Grad
3.7 sq mi
ZIP Area
2,962
Density / Sq Mi
$39,127
Median Household Income
$31,312
Median Earnings
$964
Median Rent
$277,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office units - Business office with corner-lot access, two entrances, and parking areas, plus renovation and roof update.
Where is this office units located?
The property is located at 304 W Cervantes St Pensacola, FL.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Corner‑lot business office with easy ingress/egress, 2 parking areas, and 2 entrances (off Cervantes St and off Barcelona St).; Zoned PR‑2 North Hill Preservation Multiple‑Family District.; Previously renovated: major 1000 SF addition on built‑up slab in 2000, with an update in 2018 including a new roof.
