Pensacola Freestanding Office
For Sale
$500,000
824 E La Rua St, Pensacola, FL 32501
Two-story office building in Pensacola's historic downtown and waterfront area.
Property Size1,964 SF
Lot Size0.13 Acres
Price / SF$254.58
Days on Market217
Property Features for 824 E La Rua St
General Information
Standard status
Active
Size
1,964 SF
Class
B
Lot size
0.13 Acres
Property subtype
Office
Building Details
Building Size
1,964 SF
Year Built
1900
Listing Agency:
Bellcore Commercial
(850) 232-2587
Listed By:
Robert Bell · License #FL #SL698346
(850) 232-2587
Source:
Bellcorecommercial
Added: Jan 27
Changed: Aug 22
Last Checked: Aug 31 at 2:53PM
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 Bellcore Commercial
Investment Insights
Based on property information with market context.
This two-story freestanding office building, located in Pensacola, Florida, offers 1,964 square feet of flexible space on a 0.126-acre lot. Situated at the corner of E La Rua St and 9th Ave, the property benefits from high visibility and accessibility, with close proximity to historic downtown Pensacola and the waterfront. Constructed in 1900 and classified as Building Class B, the property includes surface parking and multiple restrooms. The roof and HVAC system were replaced in 2021. The interior layouts are versatile, suitable for professional offices, creative workspaces, or boutique services. Zoned OEHC-1, the property supports a range of commercial uses. The location offers a blend of cultural heritage, dining, and commercial activity. Nearby attractions include Pensacola Naval Air Station, the National Naval Aviation Museum, and Seville Square, making it a compelling opportunity for investors.
Key Highlights
- Prime corner lot location at E La Rua St & 9th Ave, offering strong visibility and easy accessibility.
- 1,964 SF of flexible space suitable for professional offices, creative workspaces, or boutique services.
- Zoned OEHC‑1, supporting a wide range of commercial uses.
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
$33,123
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
6.62%
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%
$662,460
$662.5K
Cap Rate 7%
$473,186
$473.2K
Cap Rate 9%
$368,033
$368.0K
Market Conditions
NOI Build-Up for 1,964 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
$49.3K $25.08/SF
− Vacancy
−$5.1K −$2.59/SF
EGI
$44.2K $22.49/SF
− OpEx
−$11.0K −$5.62/SF
NOI
$33.1K $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%
$662,460
Cap Rate 7%
$473,186
Cap Rate 9%
$368,033
Alternative Uses
Best Use
Office B
$473.2K
$414.0K – $552.1K
NOI $33,123 @ 7.0% cap · market cap 6.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$576.4K
$504.4K – $672.5K
NOI $40,349 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,734
Businesses Nearby
Explore this area
Business Placement
Demographics for 32501, FL
10,960
Population
5,505
Households
2
Avg Household Size
41
Median Age
30%
College-Educated
86%
High-School Grad
3.7 sq mi
ZIP Area
2,962
Density / Sq Mi
$39,127
Median Household Income
$31,312
Median Earnings
$964
Median Rent
$277,500
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 - Two-story office building in Pensacola's historic downtown and waterfront area.
Where is this office building located?
The property is located at 824 E La Rua St Pensacola, FL.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Prime corner lot location at E La Rua St & 9th Ave, offering strong visibility and easy accessibility.; 1,964 SF of flexible space suitable for professional offices, creative workspaces, or boutique services.; Zoned OEHC‑1, supporting a wide range of commercial uses.
