Remodeled Commercial Property with Flexible
For Sale
$324,900
31 NE Kelly Avenue, Fort Walton Beach, FL 32548
Versatile commercial property in Fort Walton Beach with live/work potential.
Property Size1,159 SF
Lot Size0.17 Acres
Price / SF$280.33
Days on Market177
Property Features for 31 NE Kelly Avenue
General Information
Standard status
Active
Size
1,159 SF
Lot size
0.17 Acres
Property subtype
Commercial
Listing Agency:
EXP REALTY LLC
(888) 883-8509
Listed By:
JOSHUA D LEGARE
Source:
Corcoran
Added: Feb 26
Changed: Aug 22
Last Checked: Aug 22 at 8:07AM
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 EXP REALTY LLC
Investment Insights
Based on property information with market context.
Located in Fort Walton Beach, FL, this remodeled 1,159 square foot property at 31 Kelly Ave NE offers a versatile opportunity for various uses. Zoned C-2 General Commercial, it features four office spaces and one full bathroom, suitable for a professional office, boutique retail or service-based business, short-term rental investment, or even a primary residence. The zoning allows for on-site living and working. The property has two vehicular entry points, from Hughes Street to the south and Kelly Avenue to the north, providing traffic flow and convenience. There are four dedicated parking spaces at the front, and a powered rear gate opens to a paved, enclosed driveway for secured additional parking. Outdoor electrical hookups are in place. Capital improvements include a re-reroof in 2015 and new windows installed in 2017, along with a tankless water heater. Outdoor features include a dry sauna, an outdoor shower, and a large storage shed with electricity. The property is located minutes from downtown Fort Walton Beach, the beaches, Eglin Air Force Base, and Hurlburt Field.
Key Highlights
- C‑2 General Commercial zoning offers exceptional flexibility for business, short‑term rental, or primary residence.
- Prime location minutes from downtown Fort Walton Beach, beaches, Eglin AFB, and Hurlburt Field.
- Completely remodeled 1,159 sq ft property featuring four office spaces and one full bathroom.
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
$14,968
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
4.61%
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%
$299,360
$299.4K
Cap Rate 7%
$213,829
$213.8K
Cap Rate 9%
$166,311
$166.3K
Market Conditions
NOI Build-Up for 1,159 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
$24.3K $21.00/SF
− Vacancy
−$4.4K −$3.78/SF
EGI
$20.0K $17.22/SF
− OpEx
−$5.0K −$4.31/SF
NOI
$15.0K $12.92/SF
Area
Okaloosa County, FL
Vacancy
18.00%
Lease Rate
$21.00 /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%
$299,360
Cap Rate 7%
$213,829
Cap Rate 9%
$166,311
Alternative Uses
Best Use
Office B
$213.8K
$187.1K – $249.5K
NOI $14,968 @ 7.0% cap · market cap 4.61%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$446.6K
$390.8K – $521.1K
NOI $31,265 @ 7.0% cap · market cap 9.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,305
Businesses Nearby
Explore this area
Business Placement
Demographics for 32548, FL
22,399
Population
14,040
Households
1.6
Avg Household Size
42
Median Age
31%
College-Educated
91%
High-School Grad
12.1 sq mi
ZIP Area
1,851
Density / Sq Mi
$63,857
Median Household Income
$37,725
Median Earnings
$1,281
Median Rent
$291,000
Median Home Value
Market
Vacancy Rate% for Office 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?
Office units - Versatile commercial property in Fort Walton Beach with live/work potential.
Where is this office units located?
The property is located at 31 NE Kelly Avenue Fort Walton Beach, FL.
What is the asking price?
The asking price for this property is $324,900.
What are key features of this property?
This property features: C‑2 General Commercial zoning offers exceptional flexibility for business, short‑term rental, or primary residence.; Prime location minutes from downtown Fort Walton Beach, beaches, Eglin AFB, and Hurlburt Field.; Completely remodeled 1,159 sq ft property featuring four office spaces and one full bathroom.
