Panama City Beach Redevelopment
For Sale
$2,500,000
8602 Thomas Dr, Panama City Beach, FL 32408
2-acre redevelopment site on Thomas Drive near beach access.
Property Size7,357 SF
Days on Market279
Property Features for 8602 Thomas Dr
General Information
Standard status
Active
Size
7,357 SF
Property subtype
Land
Building Details
Building Size
7,357 SF
Listing Agency:
Graham & Company Birmingham
(850) 348-0808
Listed By:
Kevin Williams, CCIM
Source:
Grahamcompany
Added: Nov 21, 2025
Changed: Aug 23
Last Checked: Aug 26 at 7:37AM
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 Graham & Company Birmingham
Investment Insights
Based on property information with market context.
This 2-acre property is a prime redevelopment site located on Thomas Drive in east-end Panama City Beach. It features 350 feet of frontage on Thomas Drive and is situated 465 feet from public beach access #24. The site currently operates as Emerald Falls Family Recreation Center, offering go-karts, mini-golf, an arcade, and outdoor attractions. Thomas Drive functions as Panama City Beach's entertainment and retail corridor. The property is positioned minutes from Shipwreck Island, Ripley's Believe It or Not, WonderWorks, and Pier Park. All utilities are available to the site. This large, improved parcel includes existing parking and access, making it suitable for mixed-use development, a restaurant, a resort, or high-density residential conversion. Its location in a high-visibility leisure and commercial corridor serves both local residents and tourists throughout the year, with close proximity to marinas and St. Andrews State Park.
Key Highlights
- Prime redevelopment site on Thomas Drive, part of Panama City Beach's entertainment/retail spine.
- Large, improved 2‑acre parcel with existing parking and access.
- 350' Frontage on Thomas Drive.
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
$80,558
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
3.22%
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%
$1,611,160
$1.6M
Cap Rate 7%
$1,150,829
$1.2M
Cap Rate 9%
$895,089
$895.1K
Market Conditions
NOI Build-Up for 7,357 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
$125.4K $17.04/SF
− Vacancy
−$10.3K −$1.40/SF
EGI
$115.1K $15.64/SF
− OpEx
−$34.5K −$4.69/SF
NOI
$80.6K $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%
$1,611,160
Cap Rate 7%
$1,150,829
Cap Rate 9%
$895,089
Alternative Uses
Best Use
Retail
$1.15M
$1.01M – $1.34M
NOI $80,558 @ 7.0% cap · market cap 3.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.14M
$1.88M – $2.50M
NOI $150,050 @ 7.0% cap · market cap 6.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
439
Businesses Nearby
30k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 52%
Shops & Services 48%
Wendy's
Dining
7,946 visits/mo
0.1 miles
Dollar General
Shops & Services
7,317 visits/mo
0.3 miles
Guadalajara
Dining
7,175 visits/mo
0.1 miles
Mobil
Shops & Services
3,070 visits/mo
0.3 miles
Exxon
Shops & Services
2,996 visits/mo
0.3 miles
Demographics for 32408, FL
17,479
Population
17,018
Households
1
Avg Household Size
48
Median Age
39%
College-Educated
96%
High-School Grad
8.6 sq mi
ZIP Area
2,032
Density / Sq Mi
$72,322
Median Household Income
$42,749
Median Earnings
$1,453
Median Rent
$352,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Storefront property - 2-acre redevelopment site on Thomas Drive near beach access.
Where is this storefront property located?
The property is located at 8602 Thomas Dr Panama City Beach, FL.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Prime redevelopment site on Thomas Drive, part of Panama City Beach's entertainment/retail spine.; Large, improved 2‑acre parcel with existing parking and access.; 350' Frontage on Thomas Drive.
