Industrial Land with Office
For Sale
$1,300,000
8701 N Palafox Street, Pensacola, FL 32534
2-acre industrial yard with three red iron outbuildings and a recently renovated 4,500 sq ft office.
Property Size7,216 SF
Price / SF$180.16
Days on Market195
Property Features for 8701 N Palafox Street
General Information
Standard status
Active
Size
7,216 SF
Property subtype
Mixed Use
Taxes and HOA fees
Annual Taxes
$1,116
Amenities
3
Parking.
Lot.
Building Details
Year Built
1958
Listing Agency:
Realty World Curri Properties
(321) 961-4487
Listed By:
John Curri · License #3105835
(321) 961-4487
Source:
Xome
Added: Feb 11
Changed: Aug 23
Last Checked: Aug 24 at 4:07AM
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 Realty World Curri Properties
Investment Insights
Based on property information with market context.
This for-sale industrial property includes approximately 2 acres of land featuring three red iron metal outbuildings and a recently renovated 4,500 sq ft office space. The office has been remodeled from top to bottom with updates that include new HVAC, impact windows and doors, a new roof, new flooring, and new electrical, creating a turnkey setup for day-to-day operations.
The site spans between two roads and is located near Pensacola Blvd, about 2 miles from I-10, supporting convenient regional access.
The combination of yard space, multiple outbuildings, and an improved office makes the property practical for a range of industrial and specialty trade users that need both outdoor storage and dedicated workspace.
The site spans between two roads and is located near Pensacola Blvd, about 2 miles from I-10, supporting convenient regional access.
The combination of yard space, multiple outbuildings, and an improved office makes the property practical for a range of industrial and specialty trade users that need both outdoor storage and dedicated workspace.
Key Highlights
- 2‑acre industrial yard with access between 2 roads
- Recently renovated 4,500 SF office space (remodeled top to bottom)
- New HVAC, impact windows and doors, and new roof in the office
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
$81,753
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
6.29%
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%
$1,635,060
$1.6M
Cap Rate 7%
$1,167,900
$1.2M
Cap Rate 9%
$908,367
$908.4K
Market Conditions
NOI Build-Up for 7,216 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
$140.3K $19.44/SF
− Vacancy
−$14.5K −$2.01/SF
EGI
$125.8K $17.43/SF
− OpEx
−$44.0K −$6.10/SF
NOI
$81.8K $11.33/SF
Area
Escambia County, FL
Vacancy
10.34%
Lease Rate
$19.44 /SF/Yr
Expense Ratio
35.00%
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%
$1,635,060
Cap Rate 7%
$1,167,900
Cap Rate 9%
$908,367
Alternative Uses
Best Use
Office B
$1.74M
$1.52M – $2.03M
NOI $121,698 @ 7.0% cap · market cap 9.36%
Second Best
Flex RnD
$1.17M
$1.02M – $1.36M
NOI $81,753 @ 7.0% cap · market cap 6.29%
Theoretical Best
Office A
$2.12M
$1.85M – $2.47M
NOI $148,246 @ 7.0% cap · market cap 11.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
646
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 32534, FL
16,006
Population
7,573
Households
2.1
Avg Household Size
39
Median Age
22%
College-Educated
92%
High-School Grad
9.9 sq mi
ZIP Area
1,617
Density / Sq Mi
$59,013
Median Household Income
$34,841
Median Earnings
$1,350
Median Rent
$192,500
Median Home Value
Market
Vacancy Rate% for Office 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?
Flex space - 2-acre industrial yard with three red iron outbuildings and a recently renovated 4,500 sq ft office.
Where is this flex space located?
The property is located at 8701 N Palafox Street Pensacola, FL.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: 2‑acre industrial yard with access between 2 roads; Recently renovated 4,500 SF office space (remodeled top to bottom); New HVAC, impact windows and doors, and new roof in the office
