Historic Office Building with
For Sale
$650,000
854 Magnolia Avenue, Panama City, FL 32401
CommercialSale, Panama City, FL
Property Size1,708 SF
Lot Size0.64 Acres
Price / SF$380.56
Days on Market205
Property Features for 854 Magnolia Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
Business, Resid Multi-Family, Resid Single Family
Subdivision
No Named Subdivision
Elementary school
Cherry Street
Middle school
Jinks
High school
Bay
Directions
From Hwy 98, South on Harrison Ave, Left/East on 9th St. Property is on South East Corner of 9th St and Magnolia Ave.
Standard status
Active
APN
16721-000-000
Size
1,708 SF
Lot size
0.64 Acres
Taxes and HOA fees
Tax Description
4 4S 14W-261-69A BEG AT INT SEC OF S LI OF 9TH ST & E LI OF MAGNOLIA AV TH S 100' E 150' N 100' W 150' TO BEG ORB 4655 P 896
Legal Description
4 4S 14W-261-69A BEG AT INT SEC OF S LI OF 9TH ST & E LI OF MAGNOLIA AV TH S 100' E 150' N 100' W 150' TO BEG ORB 4655 P 896
Utilities
Heating system
Central, Electric (Heating)
Cooling system
Central Air
Amenities
built-in speakers
security system
Nest system
gas fireplaces
Building Details
Year built
1938
Flooring type
Hardwood
Roof type
Shingle
Listing Agency:
Keller Williams Success Realty · Keller Williams Realty
(850) 249-0313
Listed By:
Dennis Nelson · License #BK3379289
(850) 348-8262
Added: Mar 6
Changed: Sep 12
Last Checked: Sep 27 at 5:06PM
MLS# 786746
Copyright © 2026 Central Panhandle Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Built in 1938, this 1,708-square-foot office property combines historic character with extensive interior updates. The building includes two large suites, each with a private entrance, gas fireplace, walk-in closet, and custom bathroom with tiled shower. A third bathroom is located near the kitchen, while the entry-level living area can function as reception, waiting, display, or presentation space.
Mixed-use zoning supports multiple commercial uses, including offices. Hardwood flooring, tongue-and-groove pine walls, cathedral ceilings, quartz countertops, custom cabinetry, stainless appliances, under-cabinet lighting, built-in speakers, security equipment, and Nest systems are among the improvements. Central air, electric heat, and a shingle roof are also in place. The property is located on Magnolia Avenue in Panama City, within minutes of downtown businesses, restaurants, shops, parks, boating, fishing, and community events.
Mixed-use zoning supports multiple commercial uses, including offices. Hardwood flooring, tongue-and-groove pine walls, cathedral ceilings, quartz countertops, custom cabinetry, stainless appliances, under-cabinet lighting, built-in speakers, security equipment, and Nest systems are among the improvements. Central air, electric heat, and a shingle roof are also in place. The property is located on Magnolia Avenue in Panama City, within minutes of downtown businesses, restaurants, shops, parks, boating, fishing, and community events.
Key Highlights
- 1,708 SF office building on Magnolia Avenue in Panama City
- Two large suites with private entrances, fireplaces, walk‑in closets, and custom bathrooms
- Mixed‑use zoning allows multiple commercial uses, including offices
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
$28,719
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
4.42%
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%
$574,380
$574.4K
Cap Rate 7%
$410,271
$410.3K
Cap Rate 9%
$319,100
$319.1K
Market Conditions
NOI Build-Up for 1,708 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
$48.2K $28.20/SF
− Vacancy
−$9.9K −$5.78/SF
EGI
$38.3K $22.42/SF
− OpEx
−$9.6K −$5.60/SF
NOI
$28.7K $16.81/SF
Area
Bay County, FL
Vacancy
20.50%
Lease Rate
$28.20 /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%
$574,380
Cap Rate 7%
$410,271
Cap Rate 9%
$319,100
Alternative Uses
Best Use
Office B
$410.3K
$359.0K – $478.7K
NOI $28,719 @ 7.0% cap · market cap 4.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$497.7K
$435.5K – $580.6K
NOI $34,836 @ 7.0% cap · market cap 5.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,965
Businesses Nearby
Explore this area
Business Placement
Demographics for 32401, FL
20,487
Population
10,239
Households
2
Avg Household Size
42
Median Age
20%
College-Educated
86%
High-School Grad
12.5 sq mi
ZIP Area
1,639
Density / Sq Mi
$49,901
Median Household Income
$35,885
Median Earnings
$1,194
Median Rent
$207,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Remodeled commercial property with multiple entrances, private suite access, and flexible mixed-use zoning for office operations.
Where is this office building located?
The property is located at 854 Magnolia Avenue Panama City, FL.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 1,708 SF office building on Magnolia Avenue in Panama City; Two large suites with private entrances, fireplaces, walk‑in closets, and custom bathrooms; Mixed‑use zoning allows multiple commercial uses, including offices
