Lots of good reels for an 8.5' light surf rod:
Shimano Baitrunner 3500B
Shimano Spheros 5000/6000 (dunno why folks have jumped on these reels, I have the 8000 size on 9-10 rods and its SWEET!).
Daiwa Hardbodyz (ANY of them are exceptional buys for the $)
3500/4000 size. Retail on the Kastor is around $70, Capricorn is on sale all over for under $100 on the internet.
Penn Slammer 360. Solid reel on the heavier side, but I like the extra weight for balancing the outfit.
I use two 360 and one 260 (bay oufit on a 7' St Croix).
Lots and lots of good reels out there. Shimano is hard to beat for buttery smooth everything. Even the Sedona line as anti-rust bearings now. Spheros has them, too.
I work in Waltham, if you want to try out some of my reels send me a private message.