Destin Medical/Professional Office
For Sale
$3,500,900
4635 Gulfstarr Drive, Destin, FL 32541
Class A, fully leased medical/professional office building in Destin.
Property Size15,000 SF
Lot Size1.10 Acres
Price / SF$233.39
Days on Market533
Property Features for 4635 Gulfstarr Drive
General Information
Standard status
Active
Size
15,000 SF
Lot size
1.10 Acres
Property subtype
Commercial
Listing Agency:
RE/MAX COASTAL PROPERTIES
(850) 837-9900
Listed By:
KAREN K MARTINEAU · License #3096846
Source:
Corcoran
Added: Feb 25, 2025
Changed: Aug 8
Last Checked: Aug 8 at 6:08AM
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 RE/MAX COASTAL PROPERTIES
Investment Insights
Based on property information with market context.
This is a two-story Class A, fully leased medical/professional office building situated in Destin. The property benefits from a prime corner location with a traffic light, providing accessibility and visibility from the 60,000+ vehicles that pass daily along Hwy 98. A large, highly visible marquee sign is also present on the corner site. Strategically located less than a mile from The Destin Commons, Whole Foods, restaurants and businesses, this professional office building generates $347,884 annual income. The 15,000+ SF Class A office space features high-quality finishes and architectural appeal. The estimated 2025 NOI is $224,000 with a 6.4% CAP. The month-to-month tenant could vacate if the buyer wants to occupy the space. The property is intended for use as a medical or professional office building.
Key Highlights
- Fully leased Class A medical/professional office building generating $347,884 annual income.
- High visibility corner location with traffic light access and a large marquee sign on Hwy 98 (60,000+ vehicles daily).
- 6.4% CAP rate based on estimated 2025 NOI of $224,000.
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
$202,986
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
5.80%
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%
$4,059,720
$4.1M
Cap Rate 7%
$2,899,800
$2.9M
Cap Rate 9%
$2,255,400
$2.3M
Market Conditions
NOI Build-Up for 15,000 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
$378.0K $25.20/SF
− Vacancy
−$39.7K −$2.65/SF
EGI
$338.3K $22.55/SF
− OpEx
−$135.3K −$9.02/SF
NOI
$203.0K $13.53/SF
Area
Walton County, FL
Vacancy
10.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$4,059,720
Cap Rate 7%
$2,899,800
Cap Rate 9%
$2,255,400
Alternative Uses
Best Use
Healthcare Medical
$2.90M
$2.54M – $3.38M
NOI $202,986 @ 7.0% cap · market cap 5.80%
Second Best
Office B
$2.70M
$2.36M – $3.15M
NOI $189,000 @ 7.0% cap · market cap 5.40%
Theoretical Best
Office A
$3.77M
$3.30M – $4.40M
NOI $264,060 @ 7.0% cap · market cap 7.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,219
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 32541, FL
18,419
Population
16,390
Households
1.1
Avg Household Size
45
Median Age
48%
College-Educated
95%
High-School Grad
12.6 sq mi
ZIP Area
1,462
Density / Sq Mi
$93,004
Median Household Income
$47,991
Median Earnings
$1,976
Median Rent
$498,600
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.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Class A, fully leased medical/professional office building in Destin.
Where is this medical office space located?
The property is located at 4635 Gulfstarr Drive Destin, FL.
What is the asking price?
The asking price for this property is $3,500,900.
What are key features of this property?
This property features: Fully leased Class A medical/professional office building generating $347,884 annual income.; High visibility corner location with traffic light access and a large marquee sign on Hwy 98 (60,000+ vehicles daily).; 6.4% CAP rate based on estimated 2025 NOI of $224,000.
