Commercial Building on Krome
For Sale
Contact for pricing
505 N Krome Ave, Homestead, FL 33030
Commercial building with B-1 zoning on Krome Avenue.
Property Size7,640 SF
Lot Size0.31 Acres
Price / SF$458.12
Days on Market145
Property Features for 505 N Krome Ave
General Information
Standard status
Active
Size
7,640 SF
Lot size
0.31 Acres
Property subtype
Retail, Office
Zoning
6300
Building Details
Year Built
1955
Listing Agency:
Royal Palm Real Estate Services LLC
(305) 216-1211
Listed By:
June Makis · License #3161894
Source:
Crexi
Added: Mar 21
Changed: Aug 10
Last Checked: Aug 11 at 6:39AM
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 Royal Palm Real Estate Services LLC
Investment Insights
Based on property information with market context.
This commercial building, located directly on Krome Avenue in the City of Homestead, offers 7,640 square feet of space on a 13,500 square foot lot. The property is zoned B-1 and is currently configured for two businesses. The layout can be remodeled to accommodate up to five separate units, each potentially having its own address and bathroom. Street parking is available in front, with additional paved parking provided at the back of the building. Both front and back access to the building are available. The building has recently completed its 40-year recertification and is ready for a new owner.
Key Highlights
- Prime location directly on Krome Ave in Homestead.
- Large 7,640 sq ft building on a 13,500 sq ft lot.
- B‑1 zoning for commercial use.
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
$202,498
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
5.79%
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%
$4,049,960
$4.0M
Cap Rate 7%
$2,892,829
$2.9M
Cap Rate 9%
$2,249,978
$2.2M
Market Conditions
NOI Build-Up for 7,640 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
$348.4K $45.60/SF
− Vacancy
−$78.4K −$10.26/SF
EGI
$270.0K $35.34/SF
− OpEx
−$67.5K −$8.84/SF
NOI
$202.5K $26.51/SF
Area
Miami-Dade County, FL
Vacancy
22.50%
Lease Rate
$45.60 /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%
$4,049,960
Cap Rate 7%
$2,892,829
Cap Rate 9%
$2,249,978
Alternative Uses
Best Use
Office B
$2.89M
$2.53M – $3.37M
NOI $202,498 @ 7.0% cap · market cap 5.79%
Second Best
Retail
$1.85M
$1.61M – $2.15M
NOI $129,186 @ 7.0% cap · market cap 3.69%
Theoretical Best
Office A
$3.88M
$3.39M – $4.52M
NOI $271,327 @ 7.0% cap · market cap 7.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,218
Businesses Nearby
Explore this area
Business Placement
Demographics for 33030, FL
36,776
Population
11,217
Households
3.3
Avg Household Size
33
Median Age
15%
College-Educated
61%
High-School Grad
17.6 sq mi
ZIP Area
2,090
Density / Sq Mi
$43,231
Median Household Income
$28,214
Median Earnings
$1,307
Median Rent
$382,200
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?
Retail property - Commercial building with B-1 zoning on Krome Avenue.
Where is this retail property located?
The property is located at 505 N Krome Ave Homestead, FL.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Prime location directly on Krome Ave in Homestead.; Large 7,640 sq ft building on a 13,500 sq ft lot.; B‑1 zoning for commercial use.
