Sarasota Office Condo For
For Sale
Contact for pricing
Pending
505 S Orange Ave., Sarasota, FL 34236
Two-story office condo in downtown Sarasota with secured parking.
Property Size3,863 SF
Days on Market839
Property Features for 505 S Orange Ave.
General Information
Standard status
Pending
Size
3,863 SF
Class
B
Property subtype
Office
Building Details
Year Built
2007
Listing Agency:
Michael Saunders & Company
(941) 809-6351
Listed By:
Eric Massey · License #FL 604760
Source:
Crexi
Added: May 16, 2024
Changed: Aug 8
Last Checked: Jul 25 at 12:42PM
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 Michael Saunders & Company
Investment Insights
Based on property information with market context.
This 3,863 square foot, two-story office condo is located in Sarasota, Florida. The property is zoned DTC (Downtown Core), offering a strategic location in the heart of Sarasota. It is ideally suited for any type of office use. The suite also features 13 covered, secured parking spaces. The suite can be purchased as an investment or be delivered vacant. There is currently a NNN lease in place until June 30th, 2027, offering a 6% cap rate.
Key Highlights
- Strategic location in the heart of Sarasota, FL, zoned DTC (Downtown Core) offering high visibility and accessibility.
- Investment opportunity with existing NNN lease until June 30th, 2027, offering a 6% cap rate (can also be delivered vacant).
- 3,863 SF two‑story office condo suitable for any type of office use.
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
$63,081
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
5.05%
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%
$1,261,620
$1.3M
Cap Rate 7%
$901,157
$901.2K
Cap Rate 9%
$700,900
$700.9K
Market Conditions
NOI Build-Up for 3,863 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
$89.0K $23.04/SF
− Vacancy
−$4.9K −$1.27/SF
EGI
$84.1K $21.77/SF
− OpEx
−$21.0K −$5.44/SF
NOI
$63.1K $16.33/SF
Area
Manatee County, FL
Vacancy
5.50%
Lease Rate
$23.04 /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%
$1,261,620
Cap Rate 7%
$901,157
Cap Rate 9%
$700,900
Alternative Uses
Best Use
Office B
$901.2K
$788.5K – $1.05M
NOI $63,081 @ 7.0% cap · market cap 5.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.14M
$994.0K – $1.33M
NOI $79,519 @ 7.0% cap · market cap 6.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,284
Businesses Nearby
Explore this area
Business Placement
Demographics for 34236, FL
14,083
Population
11,661
Households
1.2
Avg Household Size
66
Median Age
62%
College-Educated
96%
High-School Grad
3.6 sq mi
ZIP Area
3,912
Density / Sq Mi
$96,400
Median Household Income
$48,828
Median Earnings
$2,010
Median Rent
$917,100
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 units - Two-story office condo in downtown Sarasota with secured parking.
Where is this office units located?
The property is located at 505 S Orange Ave. Sarasota, FL.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Strategic location in the heart of Sarasota, FL, zoned DTC (Downtown Core) offering high visibility and accessibility.; Investment opportunity with existing NNN lease until June 30th, 2027, offering a 6% cap rate (can also be delivered vacant).; 3,863 SF two‑story office condo suitable for any type of office use.
