Income in place vs. income on paper
A pro forma is a projection; a signed lease with a paying tenant is a fact. When comparing Naples opportunities, weight actual in-place income over projected upside. An asset with a tenant through 2029 delivers years of contractual cash flow, while a vacant or short-leased property asks you to underwrite a lease-up that may or may not happen on schedule.
How to evaluate the income stream
- Remaining lease term — longer means less rollover risk
- Tenant quality — established, local, and renewing businesses
- Escalations — built-in rent growth protects against inflation
- Expense structure — who pays taxes, insurance, CAM, and utilities
- NOI margin — stable expenses make the income bankable
A benchmark: $70,000 NOI in Old Naples
At a 4.67% cap rate, $70,000 of net operating income supports a $1.5M valuation for a Class A Old Naples office condo. For a cash buyer that's a 4.67% yield on a hard asset in one of Florida's strongest micro-markets — before any depreciation benefits from a cost segregation study.
A current example: Suite 200 at 599 Tamiami Trail N
This fully built-out executive office condo in the heart of Old Naples is offered at $1,500,000 with a 4.67% cap rate and $70,000 in net operating income. The tenant is in place on a lease running through 2029, so a buyer steps directly into stabilized income with no lease-up risk.
Fee-simple title, a prestigious downtown address, and a turn-key buildout make it a clean, quick close — important for anyone working inside a 1031 exchange timeline or placing capital before year-end.