Two-Unit Office
For Sale
$450,000
Pending
407 E ALFRED STREET, Tavares, FL 32778
Two office suites combine an established tenancy with space currently used by the owner.
Property Size2,379 SF
Days on Market535
Property Features for 407 E ALFRED STREET
General Information
Standard status
Pending
Size
2,379 SF
Property subtype
Commercial/Industrial
Additional Details
Road Access
Yes
Office Units
2
Taxes and HOA fees
Annual Taxes
$5,290
Building Details
Year Built
1986
Buildings
1
Owner Occupied
Yes
Listing Agency:
MORRIS REALTY AND INVESTMENTS
Listed By:
Scott Strem · License #3106245
(352) 435-4663
Source:
Exitrealty
Added: Mar 18, 2025
Changed: Sep 2
Last Checked: Sep 2 at 3:47PM
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 MORRIS REALTY AND INVESTMENTS
Investment Insights
Based on property information with market context.
This 2,379-square-foot office property contains two separate units within a building constructed in 1986. Unit 407 is occupied by a national insurance agency, while Unit 405 is used by the owner, creating a combination of established occupancy and existing user space.
The property carries a Tavares address on E Alfred Street and is situated near downtown. Building signage is positioned along the street, providing an identifiable presence for occupants and visitors.
The property carries a Tavares address on E Alfred Street and is situated near downtown. Building signage is positioned along the street, providing an identifiable presence for occupants and visitors.
Key Highlights
- 2,379‑square‑foot office building with two units
- Unit 407 occupied by a national insurance agency
- Unit 405 currently occupied by the owner
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
$35,542
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
7.90%
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%
$710,840
$710.8K
Cap Rate 7%
$507,743
$507.7K
Cap Rate 9%
$394,911
$394.9K
Market Conditions
NOI Build-Up for 2,379 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
$57.1K $24.00/SF
− Vacancy
−$9.7K −$4.08/SF
EGI
$47.4K $19.92/SF
− OpEx
−$11.8K −$4.98/SF
NOI
$35.5K $14.94/SF
Area
Lake County, FL
Vacancy
17.00%
Lease Rate
$24.00 /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%
$710,840
Cap Rate 7%
$507,743
Cap Rate 9%
$394,911
Alternative Uses
Best Use
Office B
$507.7K
$444.3K – $592.4K
NOI $35,542 @ 7.0% cap · market cap 7.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$677.0K
$592.4K – $789.8K
NOI $47,390 @ 7.0% cap · market cap 10.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
820
Businesses Nearby
Explore this area
Business Placement
Demographics for 32778, FL
23,993
Population
12,720
Households
1.9
Avg Household Size
52
Median Age
25%
College-Educated
88%
High-School Grad
25.4 sq mi
ZIP Area
945
Density / Sq Mi
$61,815
Median Household Income
$40,942
Median Earnings
$1,384
Median Rent
$241,500
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?
Office units - Two office suites combine an established tenancy with space currently used by the owner.
Where is this office units located?
The property is located at 407 E ALFRED STREET Tavares, FL.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: 2,379‑square‑foot office building with two units; Unit 407 occupied by a national insurance agency; Unit 405 currently occupied by the owner
