Pascagoula Professional Building
100% Leased Office Building on Gulf Coast | 90% of GLA & Rent from Public, Investment-Grade Tenants
Marketing description
Northmarq Commercial, on behalf of ownership, is pleased to present the exclusive opportunity to acquire a 100% fee simple interest in the Pascagoula Professional Building located at 1126 Jackson Avenue in Pascagoula, Mississippi (the “Property”). Encompassing ±27,350 SF of office space across four floors, the Property is 100% leased with a tenant roster that includes two investment-grade, national credit tenants who combined have a market cap of more than $469 billion and generated more than $264 billion in revenue in CY2024 (Chevron – NYSE: CVX | S&P: AA-; Lockheed Martin – NYSE: LMT | S&P: A-). These two tenants account for 89.2% of the leasable area and 89.4% of the annual rent. What remains is currently being occupied and paid by a bank branch of The First, a subsidiary of Renasant Corporation (NYSE: RNST | KBRA: BBB+) who is vacating at the end of their current term in June 2026; however, current Ownership will be signing a two-year master lease under the same terms and conditions and same rental rate to immediately commence thereafter on July 1, 2026 to ensure no disruption in cash flow.
The Property was renovated in 2019 and is well-positioned amid Pascagoula’s primary commercial corridor, where there is a heavy presence of office users, including a majority of the Jackson County government buildings, as the city serves as the county seat. Additionally, major economic and population drivers such as Ingalls Shipbuilding (Mississippi’s largest private employer with more than 11,000 personnel), Chevron’s Pascagoula Refinery (a top-ten U.S. refinery with more than seven million gallons of gasoline and other products daily), Pascagoula High School (a top-25 and top-200 public high school statewide and nationwide, respectively) and a major U.S. Coast Guard station are all within five miles.
Investment highlights
NATIONAL CREDIT TENANT ROSTER | 89.2% of GLA and 89.4% of rent roll is derived from well-known, investment-grade national credit tenants including Chevron (NYSE: CVX | S&P: AA-) and Lockheed Martin (NYSE: LMT | S&P: A-). These two companies combined have a market cap of more than $469 billion and generated more than $264 billion in revenue in CY2024.
FULL 2019 RENOVATION | The Property underwent a significant renovation in 2019, offering strong residual value without much in the way of deferred maintenance for potential investors.
UPSIDE POTENTIAL VIA ADDITIONAL PARCEL | Offering includes a ±0.39 acre, 42-parking-space lot directly across Convent Avenue currently zoned for commercial use that could be utilized for future development.
PRIMARY OFFICE CORRIDOR | Jackson Avenue is the primary east-west office corridor in Pascagoula and includes a number of financial and real estate businesses, as well as a majority of the Jackson County government facilities.
EXCELLENT ACCESS WITHIN I-10 CORRIDOR | The Property is less than one mile from U.S. 90, a major east-west highway that follows near Interstate 10 and passes through Texas, Louisiana, Mississippi, Alabama and Florida. Interstate 10 is the southernmost transcontinental highway in the U.S. and a vital artery for trade, stretching from California to Florida and connecting major cities like Los Angeles, Phoenix, El Paso, Houston, New Orleans and Jacksonville.
CLOSE PROXIMITY TO POPULATION DRIVERS | The Property is across the river from Ingalls Shipbuilding, a major producer of ships for the U.S. Navy and the largest private employer in Mississippi with over 11,000 personnel. The 800-acre shipyard just went through a $1 billion upgrade, has received over $200 billion new government contracts and its economic impact is felt far and wide locally, regionally and state-wide. Additionally, Pascagoula High School is around the corner (a top 25 public high school in Mississippi and among the top 200 nationwide) and Chevron’s Pascagoula Refinery (top 10 nationally) is five miles to the east.
SOLID SUNBELT OFFICE MARKET | The Gulfport-Biloxi-Pascagoula office market contains roughly 8 million square feet of inventory. It is currently thriving with vacancy hovering near historic lows (2.1%) and well-below the market’s five- and ten year averages (2.7% and 3.9%, respectively). Rents have grown more than 30% since 2020.
COUNTY SEAT LOCATION | County seats are often viewed favorably for CRE investment as they have more developed local economies, enhanced infrastructure and increased public-sector employment due to the increased government presence, generally making these cities more stable and recession-proof.
OPPORTUNITY ZONE | Purchasing property in an Opportunity Zone offers several monetary benefits due to tax incentives designed to stimulate investment. Specifically, buyers can potentially defer capital gains taxes on the sale of an asset if the proceeds are reinvested in such a property. Moreover, after holding that investment for a required period of time, any gains from the new investment are tax-free. These incentives can significantly reduce the buyer’s tax liabilities and increase the long-term profitability of the investment, making this a financially appealing option for commercial property buyers.
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