Pensacola Palafox Street Investment
For Sale
$9,700,000
815 South Palafox St., Pensacola, FL 32505
Iconic 21,720 SF waterfront property in downtown Pensacola.
Property Size18,994 SF
Price / SF$446.59
Days on Market283
Property Features for 815 South Palafox St.
General Information
Standard status
Active
Size
18,994 SF
Class
A
Property subtype
Office
Building Details
Building Size
18,994 SF
Year Built
1999
Listing Agency:
NAI TALCOR
(850) 814-5878
Listed By:
Patrick Jones, SIOR · License ##SL3610747
(850) 814-5878
Source:
Naiglobal
Added: Nov 21, 2025
Changed: Aug 10
Last Checked: Aug 30 at 3:19PM
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 NAI TALCOR
Investment Insights
Based on property information with market context.
The Palafox Icehouse, a three-story property located along the waterfront in downtown Pensacola's entertainment and business district, presents a rare investment opportunity. This property combines industrial character with a location along one of the city's sought-after corridors, surrounded by restaurants, retail, entertainment, and residential developments. The property is currently leased to two long-term finance and legal tenants with over 15 years of occupancy, with approximately 36 months remaining on existing leases. The property is located on South Palafox in the heart of the city, offering excellent visibility with strong foot traffic and a professional presence. The 21,720 square foot space is suitable for office, retail, or professional services. The location in a thriving Gulf Coast market with continued growth and a prestigious South Palafox address enhances tenant appeal. The Phillips Portfolio represents an opportunity to invest in one of America's growth markets. The Portfolio includes an inventory of 42 high-value assets across Northwest Florida, including residential, commercial, and industrial assets. Structured with current income-producing, in-process development parcels and greenfield land opportunities, the Phillips Portfolio offers above-market return opportunities across the immediate, medium, and long-term investment horizons.
Key Highlights
- Prime downtown Pensacola waterfront location in the heart of the entertainment and business district.
- Income‑producing property with long‑term tenants (finance and legal) and existing leases.
- High visibility with strong foot traffic and a professional presence on South Palafox.
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
$366,309
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
3.78%
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%
$7,326,180
$7.3M
Cap Rate 7%
$5,232,986
$5.2M
Cap Rate 9%
$4,070,100
$4.1M
Market Conditions
NOI Build-Up for 21,720 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
$544.7K $25.08/SF
− Vacancy
−$56.3K −$2.59/SF
EGI
$488.4K $22.49/SF
− OpEx
−$122.1K −$5.62/SF
NOI
$366.3K $16.87/SF
Area
Escambia County, FL
Vacancy
10.34%
Lease Rate
$25.08 /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%
$7,326,180
Cap Rate 7%
$5,232,986
Cap Rate 9%
$4,070,100
Alternative Uses
Best Use
Office B
$5.23M
$4.58M – $6.11M
NOI $366,309 @ 7.0% cap · market cap 3.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.37M
$5.58M – $7.44M
NOI $446,217 @ 7.0% cap · market cap 4.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,189
Businesses Nearby
Explore this area
Business Placement
Demographics for 32505, FL
28,671
Population
12,278
Households
2.3
Avg Household Size
36
Median Age
14%
College-Educated
82%
High-School Grad
13.0 sq mi
ZIP Area
2,205
Density / Sq Mi
$41,039
Median Household Income
$27,950
Median Earnings
$1,053
Median Rent
$120,300
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 - Iconic 21,720 SF waterfront property in downtown Pensacola.
Where is this office building located?
The property is located at 815 South Palafox St. Pensacola, FL.
What is the asking price?
The asking price for this property is $9,700,000.
What are key features of this property?
This property features: Prime downtown Pensacola waterfront location in the heart of the entertainment and business district.; Income‑producing property with long‑term tenants (finance and legal) and existing leases.; High visibility with strong foot traffic and a professional presence on South Palafox.
