Pensacola Retail Investment
For Sale
Contact for pricing
3119 N Davis Hwy, Pensacola, FL 32503
NNN leased retail property with strong tenants in Pensacola, Florida.
Property Size6,566 SF
Lot Size1.26 Acres
Price / SF$362.93
Days on Market191
Property Features for 3119 N Davis Hwy
General Information
Standard status
Active
Size
6,566 SF
Class
A
Total Parking Spaces
30
Lot size
1.26 Acres
Property subtype
Retail, Office, Special Purpose
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$190,639
Building Details
Year Renovated
2021
Tenancy
Multi
Listing Agency:
Franklin Street Tampa
(813) 223-6300
Listed By:
Jason Donald · License #SL706745
Source:
Crexi
Added: Feb 3
Changed: Aug 8
Last Checked: Aug 8 at 6:35AM
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 Franklin Street Tampa
Investment Insights
Based on property information with market context.
Located at 3119 N Davis Hwy, Pensacola, FL 32503, this 6,566 square foot building, renovated in 2021, sits on a 1.26-acre lot with 30 dedicated parking spaces. The property is strategically positioned at a signalized hard corner on N Davis Highway and E Texar Drive, offering excellent accessibility and visibility. It provides direct connectivity to Interstate 110 and is minutes from Interstate 10, enhancing regional access. Traffic counts surrounding the site include 63,000 VPD on I‑110, 38,500 VPD on E Fairfield Dr, 10,600 VPD on N Davis Hwy, and 9,100 VPD on E Texar Dr. The property is currently occupied by Trulieve (primary tenant; NNN) and DocMJ (medical marijuana clinic; net lease) under an absolute NNN lease structure, where the tenant is responsible for taxes, insurance, utilities, repairs, and maintenance. The rent commenced on September 1, 2021, with a remaining term of 9+ years, expiring on August 31, 2033. The lease includes two 5‑year options with 2% annual base rent escalations. The annual base rent for 2025–2026 is $190,639. The ownership is fee simple, delivered free & clear of debt. Trulieve has 233 nationwide locations, with 162 in Florida and approximately 48% market share, with 2024 revenue of $1.2B, GAAP Gross Profit of $716M, and EBITDA of $420M. The surrounding area within a 3-mile radius has a 2025 population of 64,784, a daytime population of 78,474, and 25,586 households with an average household income of $97,844 and a median age of 37.2. Pensacola has a diverse population and a significant military presence, with strong employment anchors in aerospace, defense, healthcare, cybersecurity, and manufacturing. Major institutions include Naval Air Station Pensacola, University of West Florida, Pensacola State College, and Pensacola Christian College. The city offers tourism and cultural attractions such as Historic Pensacola Village, the National Naval Aviation Museum, Pensacola Lighthouse, and a vibrant downtown corridor along Palafox Street.
Key Highlights
- Absolute NNN Lease Structure: Enjoy a truly passive income stream.
- Strong Tenant:** Leased to Trulieve, a leading national cannabis company.
- Long‑Term Lease:** Over 9 years remaining, plus two 5‑year options with annual rent increases.
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
$110,736
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
4.65%
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%
$2,214,720
$2.2M
Cap Rate 7%
$1,581,943
$1.6M
Cap Rate 9%
$1,230,400
$1.2M
Market Conditions
NOI Build-Up for 6,566 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
$164.7K $25.08/SF
− Vacancy
−$17.0K −$2.59/SF
EGI
$147.6K $22.49/SF
− OpEx
−$36.9K −$5.62/SF
NOI
$110.7K $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%
$2,214,720
Cap Rate 7%
$1,581,943
Cap Rate 9%
$1,230,400
Alternative Uses
Best Use
Office B
$1.58M
$1.38M – $1.85M
NOI $110,736 @ 7.0% cap · market cap 4.65%
Second Best
Healthcare Medical
$1.27M
$1.11M – $1.48M
NOI $88,589 @ 7.0% cap · market cap 3.72%
Theoretical Best
Office A
$1.93M
$1.69M – $2.25M
NOI $134,892 @ 7.0% cap · market cap 5.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
508
Businesses Nearby
Explore this area
Business Placement
Demographics for 32503, FL
33,693
Population
14,419
Households
2.3
Avg Household Size
36
Median Age
41%
College-Educated
94%
High-School Grad
12.6 sq mi
ZIP Area
2,674
Density / Sq Mi
$67,654
Median Household Income
$32,077
Median Earnings
$1,226
Median Rent
$270,500
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?
Retail space - NNN leased retail property with strong tenants in Pensacola, Florida.
Where is this retail space located?
The property is located at 3119 N Davis Hwy Pensacola, FL.
What is the asking price?
The asking price for this property is $2,382,988.
What are key features of this property?
This property features: Absolute NNN Lease Structure: Enjoy a truly passive income stream.; Strong Tenant:** Leased to Trulieve, a leading national cannabis company.; Long‑Term Lease:** Over 9 years remaining, plus two 5‑year options with annual rent increases.
