Versatile Office Building For
For Sale
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603 W Palmetto Street, Florence, SC 29501
Functional office building in high traffic area, ideal for professionals.
Property Size2,004 SF
Price / SF$130.99
Days on Market661
Property Features for 603 W Palmetto Street
General Information
Standard status
Active
Size
2,004 SF
Property subtype
Special Purpose
Building Details
Year Built
1940
Listing Agency:
Coldwell Banker McMillan and Associates
(843) 617-2100
Listed By:
Peggy Collins · License #SC
Source:
Crexi
Added: Nov 6, 2024
Changed: Aug 26
Last Checked: Aug 26 at 4:02PM
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 Coldwell Banker McMillan and Associates
Investment Insights
Based on property information with market context.
This versatile office building, suitable for an attorney, medical professional, or light retail shop, features wood flooring throughout, with vinyl in the bathrooms. A large reception area provides a welcoming space for clients and visitors. The property includes five offices, offering ample room for staff and operations. One office features a wall lined with bookshelves and a built-in desk area. Three half baths offer convenient access for clients and employees. A kitchen provides a cozy area for breaks and meals. A 10 x 20 wired workshop offers storage space. The building has been well maintained. The roof is approximately 7 years old, and the HVAC was updated approximately 10 years ago. Previously utilized as a frame shop and an attorney's office, this property is ideal for professionals seeking a functional and attractive workspace located in a high traffic count area. The property has a size of 2,004 square feet and is being sold as is.
Key Highlights
- High traffic count location ideal for attracting clients.
- Versatile office building suitable for various professionals.
- Five offices provide ample space for staff and operations.
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
$15,813
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
6.02%
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%
$316,260
$316.3K
Cap Rate 7%
$225,900
$225.9K
Cap Rate 9%
$175,700
$175.7K
Market Conditions
NOI Build-Up for 2,004 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
$25.3K $12.60/SF
− Vacancy
−$4.2K −$2.08/SF
EGI
$21.1K $10.52/SF
− OpEx
−$5.3K −$2.63/SF
NOI
$15.8K $7.89/SF
Area
Florence County, SC
Vacancy
16.50%
Lease Rate
$12.60 /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%
$316,260
Cap Rate 7%
$225,900
Cap Rate 9%
$175,700
Alternative Uses
Best Use
Office B
$225.9K
$197.7K – $263.6K
NOI $15,813 @ 7.0% cap · market cap 6.02%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$295.4K
$258.5K – $344.7K
NOI $20,681 @ 7.0% cap · market cap 7.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,272
Businesses Nearby
Explore this area
Business Placement
Demographics for 29501, SC
46,528
Population
20,713
Households
2.2
Avg Household Size
40
Median Age
33%
College-Educated
93%
High-School Grad
52.4 sq mi
ZIP Area
888
Density / Sq Mi
$70,618
Median Household Income
$46,246
Median Earnings
$995
Median Rent
$220,800
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 building - Functional office building in high traffic area, ideal for professionals.
Where is this office building located?
The property is located at 603 W Palmetto Street Florence, SC.
What is the asking price?
The asking price for this property is $262,500.
What are key features of this property?
This property features: High traffic count location ideal for attracting clients.; Versatile office building suitable for various professionals.; Five offices provide ample space for staff and operations.
