Freestanding Commercial Building For
For Sale
$1,385,000
507 NW Mary Esther Cut Off, Fort Walton Beach, FL 32548
3,760 SF commercial building with high visibility and versatility.
Property Size3,760 SF
Price / SF$368.35
Days on Market162
Property Features for 507 NW Mary Esther Cut Off
General Information
Standard status
Active
Size
3,760 SF
Class
Industrial, Income Producing, Retail
Zoning
Mixed Use
Listed By:
Brian and Mel Marshall
(850) 852-7653
Source:
Stagerightgroup.idxbroker
Added: Mar 27
Changed: Sep 3
Last Checked: Sep 2 at 7:02PM
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 Brian and Mel Marshall
Investment Insights
Based on property information with market context.
This 3,760 square foot freestanding commercial building is positioned along Mary Esther Cutoff, offering visibility and access. The site is located just east of a lighted intersection, capturing daily traffic. It is suitable for retail, showroom, medical, professional office, or service-based operations. The property also comes with a full liquor license with no restrictions.
Key Highlights
- High‑visibility location on heavily traveled Mary Esther Cutoff.
- Versatile 3,760 SF freestanding commercial building suitable for various uses.
- Full liquor license with no restrictions included.**
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
$54,048
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
3.90%
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%
$1,080,960
$1.1M
Cap Rate 7%
$772,114
$772.1K
Cap Rate 9%
$600,533
$600.5K
Market Conditions
NOI Build-Up for 3,760 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
$83.5K $22.20/SF
− Vacancy
−$6.3K −$1.67/SF
EGI
$77.2K $20.54/SF
− OpEx
−$23.2K −$6.16/SF
NOI
$54.0K $14.37/SF
Area
Okaloosa County, FL
Vacancy
7.50%
Lease Rate
$22.20 /SF/Yr
Expense Ratio
30.00%
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%
$1,080,960
Cap Rate 7%
$772,114
Cap Rate 9%
$600,533
Alternative Uses
Best Use
Retail
$772.1K
$675.6K – $900.8K
NOI $54,048 @ 7.0% cap · market cap 3.90%
Second Best
Office B
$693.7K
$607.0K – $809.3K
NOI $48,560 @ 7.0% cap · market cap 3.51%
Theoretical Best
Specialty Retail
$1.45M
$1.27M – $1.69M
NOI $101,429 @ 7.0% cap · market cap 7.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
895
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?
Retail space - 3,760 SF commercial building with high visibility and versatility.
Where is this retail space located?
The property is located at 507 NW Mary Esther Cut Off Fort Walton Beach, FL.
What is the asking price?
The asking price for this property is $1,385,000.
What are key features of this property?
This property features: High‑visibility location on heavily traveled Mary Esther Cutoff.; Versatile 3,760 SF freestanding commercial building suitable for various uses.; Full liquor license with no restrictions included.**
