Buy or lease smarter
Buying a building, leasing space for your business, or adding an investment property in Flagler, Volusia, St. Johns or Putnam? Here are the calculators, the checklist and the official links I'd want, in one place.
Prefer to talk? Call or text 386-627-3182
Run the numbers
Two quick calculators. Estimates to compare properties, not a loan quote or an appraisal.
Cap rate and cash-on-cash
Example numbers to start. Change them to the property's. Not sure what space rents for? Try the Rent Estimator (commercial tab).
Cap rate = NOI ÷ price, before any loan. Cash-on-cash = the cash flow after loan payments ÷ the cash you put in. Lenders look at debt coverage; each one sets its own minimum.
Buy or lease? The monthly math
Commercial rent is quoted per square foot per year. On a triple net (NNN) lease you also pay your share of taxes, insurance and upkeep; on gross, put 0 for charges.
Owning also ties up your cash and puts repairs on you; leasing keeps the cash in your business. After a purchase, the county resets the property's taxable value (see the checklist), so use a tax estimate for the new price.
Due diligence checklist
What to get, read and check before your inspection period ends. Tick them off as you go, or print the list.
What lenders will want
- The signed purchase contract and the rent roll and leases
- Two to three years of the property's operating statements
- Your last two or three years of tax returns and a personal financial statement
- Your entity papers (LLC or corporation) and who guarantees the loan
- For a business you'll run there: the business's financials
- An appraisal, a Phase I, a survey and an insurance quote (ordered after approval)
- Down payment: often more than on a home. For example, Community First Credit Union of Florida lists up to 75% loans for investment property and 80% for owner-occupied
Local banks, SBA loans and private lenders are on the Investment Lenders list.
1031 exchange basics
Selling one investment or business property and buying another? A like-kind exchange can put off the tax on your gain. The basics from the IRS:
- Since 2018 it applies only to real property held for business or investment, not your home
- Name the replacement property in writing within 45 days of selling
- Close on it within 180 days, or by your tax return's due date if that's sooner
- Most people use a qualified intermediary to hold the money; it can't be you or your agent
Talk to your tax advisor before you list or sign; the timing starts the day you close. IRS Form 8824 instructions
Zoning, maps and property records
The official county sites for zoning, land use, maps, ownership and sale records and tax estimates. Inside a city, the city sets zoning: call its planning office.
Property Appraiser · Planning & Zoning · Zoning map (PDF) · Future land use map (PDF)
Cities: Palm Coast planning · Palm Coast maps · Flagler Beach planning
Property Appraiser · Planning & Development · Interactive maps (zoning, land use)
Property Appraiser · Planning & Zoning · GIS mapping (Property Appraiser)
Links checked October 26, 2026. Maps are for reference; confirm zoning for a parcel with the planning office.
See what we have now. Our commercial listings, with photos and terms, are on the commercial page. Don't see the right one? Tell me what you need.
Tell me what you need
Opening a shop, moving your office, or buying a building as an investment? Give me the basics and I'll call you, usually the same day, with what's out there across the whole market, not just our listings.
Prefer to talk? Call or text 386-627-3182, or email Dave@RealtyExchangeFL.com.
Common questions
What is a good cap rate?
It depends on the property, the tenants and the area. A building with a strong tenant on a long lease sells at a lower cap rate (a higher price) than an older building with short leases. Ask me for recent local sales of similar property before you make an offer.
What's the difference between cap rate and cash-on-cash return?
Cap rate is the property's net income divided by its price, before any loan. Cash-on-cash is the cash left after your loan payments divided by the cash you put in. The calculator above shows both.
Is it better to buy or lease space for my business?
Leasing keeps your cash in the business and lets you move as you grow. Buying builds equity and fixes your costs, but ties up a down payment and puts repairs on you. The buy-or-lease calculator above shows the monthly difference.
Will my property taxes go up after I buy?
Often, yes. In Florida, nonresidential property's taxable value is capped at 10% a year increases for non-school taxes until it sells, then it's reset to market value the next January 1 (Florida Statutes 193.1555). Use the Property Appraiser's tax estimator for your price.
Do I still pay sales tax on commercial rent in Florida?
Not on most commercial leases. Florida repealed the sales tax on commercial rent for rental periods starting on or after October 1, 2025 (Florida Department of Revenue, TIP 25A01-04). Some rentals, like parking and short stays, are still taxed.
Does it cost me anything to have you find space?
In most commercial leases the landlord pays the leasing fee, so there is usually no cost to you. If a space works differently, I will tell you before you go see it.
Where the numbers come from
- FlaglerDave.com Rent Estimator: 170 office, retail and industrial spaces leased since October 2023 (Stellar MLS) link
- U.S. EPA, All Appropriate Inquiries (40 CFR Part 312; ASTM E1527-21) source
- U.S. Department of Justice, ADA.gov source
- FEMA Flood Map Service Center source
- Florida Statutes, section 193.1555 (assessment of nonresidential property) source
- Florida Department of Revenue, Tax Information Publication 25A01-04, "Sales Tax on Commercial Rentals Repealed Effective October 1, 2025" source
- Florida Department of Revenue, Documentary Stamp Tax source
- FlaglerDave.com Investment Lenders list (each lender checked on its own website October 14, 2026) link
- IRS, Instructions for Form 8824, Like-Kind Exchanges source
- IRS, Like-kind exchanges: real estate tax tips source
Checked October 26, 2026. Laws and rates change; confirm before you rely on them.
Dave Petkovsek, Real Estate Broker & Instructor, Realty Exchange, 300 Palm Coast Pkwy NE, Palm Coast, FL 32137, 386-627-3182. Realty Exchange LLC, licensed Florida real estate brokerage. The listings on these pages are listings of Realty Exchange. Calculators and checklists are estimates and general information, not legal, tax, lending, appraisal or engineering advice; talk to your attorney, accountant and lender before you rely on them. Sizes are approximate, and prices, terms and availability can change. We welcome every business and every person, and we follow all fair housing and equal opportunity laws.