Medical Office Building with New
For Sale
Contact for pricing
710 Underwood Ave, Pensacola, FL 32504
Configured for primary care with exam rooms, offices, restrooms, and unfinished expansion area.
Property Size4,186 SF
Price / SF$166.03
Days on Market491
Property Features for 710 Underwood Ave
General Information
Standard status
Active
Size
4,186 SF
Total Parking Spaces
18
Property subtype
OFFICE
Zoning
R-2A
Additional Details
Asking Price
$695,000
Road Access
Yes
Building Details
Buildings
1
Building Size
4,186 SF
Tenancy
Single
Listing Agency:
Neal & Company, LLC
(850) 287-0871
Listed By:
Donald Neal, CCIM, SIOR
(850) 287-0871
Source:
Moodyscre
Added: Apr 29, 2025
Changed: Aug 31
Last Checked: Aug 31 at 4:29PM
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 Neal & Company, LLC
Investment Insights
Based on property information with market context.
This 4,186-square-foot medical office property is currently configured for a primary care practice. The layout includes 3,198 square feet of finished medical office space and 988 square feet of unfinished upstairs area, along with 5-6 exam rooms, a reception area, 4 offices, and 3 restrooms. The building also has a new roof and approximately 18+/- parking spaces.
Located at 710 Underwood Ave in Pensacola, the property sits across from Pensacola State College and just off Ninth Avenue. Access is available through the traffic signal at Ninth Avenue and Underwood Avenue, with signage visible from Ninth Avenue. R-2A zoning is designated by the City of Pensacola. The existing configuration may also accommodate a medical spa, wellness clinic, or other office use.
Located at 710 Underwood Ave in Pensacola, the property sits across from Pensacola State College and just off Ninth Avenue. Access is available through the traffic signal at Ninth Avenue and Underwood Avenue, with signage visible from Ninth Avenue. R-2A zoning is designated by the City of Pensacola. The existing configuration may also accommodate a medical spa, wellness clinic, or other office use.
Key Highlights
- 4,186 SF total building with 3,198 SF medical office space
- 988 SF upstairs unfinished space
- 5‑6 exam rooms, reception area, 4 offices, and 3 restrooms
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
$56,478
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
8.13%
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%
$1,129,560
$1.1M
Cap Rate 7%
$806,829
$806.8K
Cap Rate 9%
$627,533
$627.5K
Market Conditions
NOI Build-Up for 4,186 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
$105.0K $25.08/SF
− Vacancy
−$10.9K −$2.59/SF
EGI
$94.1K $22.49/SF
− OpEx
−$37.7K −$8.99/SF
NOI
$56.5K $13.49/SF
Area
Escambia County, FL
Vacancy
10.34%
Lease Rate
$25.08 /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%
$1,129,560
Cap Rate 7%
$806,829
Cap Rate 9%
$627,533
Alternative Uses
Best Use
Office B
$1.01M
$882.5K – $1.18M
NOI $70,597 @ 7.0% cap · market cap 10.16%
Second Best
Healthcare Medical
$806.8K
$706.0K – $941.3K
NOI $56,478 @ 7.0% cap · market cap 8.13%
Theoretical Best
Office A
$1.23M
$1.07M – $1.43M
NOI $85,997 @ 7.0% cap · market cap 12.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,716
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 32504, FL
21,791
Population
10,436
Households
2.1
Avg Household Size
43
Median Age
41%
College-Educated
92%
High-School Grad
10.5 sq mi
ZIP Area
2,075
Density / Sq Mi
$74,067
Median Household Income
$41,990
Median Earnings
$1,257
Median Rent
$242,400
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?
Medical Office Space - Configured for primary care with exam rooms, offices, restrooms, and unfinished expansion area.
Where is this medical office space located?
The property is located at 710 Underwood Ave Pensacola, FL.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: 4,186 SF total building with 3,198 SF medical office space; 988 SF upstairs unfinished space; 5‑6 exam rooms, reception area, 4 offices, and 3 restrooms
