Retail Property on High-Traffic
For Sale
$3,985,000
8406 Panama City Beach Parkway, Panama City Beach, FL 32407
Retail property with high visibility and income-generating potential.
Property Size12,622 SF
Lot Size3.00 Acres
Price / SF$315.72
Days on Market387
Property Features for 8406 Panama City Beach Parkway
General Information
Standard status
Active
Size
12,622 SF
Lot size
3.00 Acres
Property subtype
Commercial
Amenities
Metal Roof
Central Heating
Electric Heating
Paved
Building Details
Year Built
1984
Listing Agency:
GULF LIFE REAL ESTATE INC
(850) 699-1996
Listed By:
BRIAN J KEHL
Source:
Corcoran
Added: Jul 21, 2025
Changed: Aug 11
Last Checked: Aug 11 at 7:46AM
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 GULF LIFE REAL ESTATE INC
Investment Insights
Based on property information with market context.
This retail property offers an opportunity for investors and developers. The property features 200 feet of frontage on a high-traffic highway. A development order is in process. The building includes multiple units with varying occupancy statuses: Unit A (600 sq ft) is rented, Units B-C (1200 sq ft) are rented, Units D-E-F (1800 sq ft) are rented, Unit G (900 sq ft) is rented, Units H-I plus a warehouse (2500 sq ft) are rented, Units J-K-L plus a warehouse are owner-occupied, Unit M (600 sq ft) is rented, and Unit N (600 sq ft) is rented. Additionally, a billboard on the property generates $7,500 per year in rent for the building owner. The property contains 12,622 square feet of retail space.
Key Highlights
- Offered below recent appraisal value of $4,085,000 at $3,985,000.
- Strategic location with 200 ft of frontage on high traffic Hwy 98.
- In‑process Development Order (DO) for the back 2 acres, representing significant investment and potential.
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
$138,210
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
3.47%
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%
$2,764,200
$2.8M
Cap Rate 7%
$1,974,429
$2.0M
Cap Rate 9%
$1,535,667
$1.5M
Market Conditions
NOI Build-Up for 12,622 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
$215.1K $17.04/SF
− Vacancy
−$17.6K −$1.40/SF
EGI
$197.4K $15.64/SF
− OpEx
−$59.2K −$4.69/SF
NOI
$138.2K $10.95/SF
Area
Bay County, FL
Vacancy
8.20%
Lease Rate
$17.04 /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%
$2,764,200
Cap Rate 7%
$1,974,429
Cap Rate 9%
$1,535,667
Alternative Uses
Best Use
Retail
$1.97M
$1.73M – $2.30M
NOI $138,210 @ 7.0% cap · market cap 3.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.68M
$3.22M – $4.29M
NOI $257,433 @ 7.0% cap · market cap 6.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
639
Businesses Nearby
10k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 94%
Home Improvements & Furnishings 6%
Dollar General
Shops & Services
5,149 visits/mo
0.5 miles
Tidal Wave Auto Spa
Shops & Services
2,939 visits/mo
0.4 miles
Pep Boys Auto Parts & Service
Shops & Services
1,174 visits/mo
0.5 miles
Johnstone Supply
Home Improvements & Furnishings
598 visits/mo
0.4 miles
Gerber Collision & Glass
Shops & Services
329 visits/mo
0.5 miles
Demographics for 32407, FL
14,366
Population
12,163
Households
1.2
Avg Household Size
41
Median Age
40%
College-Educated
96%
High-School Grad
14.9 sq mi
ZIP Area
964
Density / Sq Mi
$79,052
Median Household Income
$44,027
Median Earnings
$1,792
Median Rent
$403,500
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail property with high visibility and income-generating potential.
Where is this retail space located?
The property is located at 8406 Panama City Beach Parkway Panama City Beach, FL.
What is the asking price?
The asking price for this property is $3,985,000.
What are key features of this property?
This property features: Offered below recent appraisal value of $4,085,000 at $3,985,000.; Strategic location with **200 ft of frontage on high traffic Hwy 98**.; In‑process Development Order (DO) for the back 2 acres, representing significant investment and potential.
