Flex Space with Open Floor
For Sale
$175,000
1006 Gatewood Drive, Phenix City, AL 36869
COMMERCIAL - Phenix City, AL
Property Size2,880 SF
Lot Size0.28 Acres
Price / SF$60.76
Days on Market178
Property Features for 1006 Gatewood Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C
Parking
8
Window features
Aluminum Frames
Fencing
Fenced
Accessibility
Accessible Approach with Ramp
Directions
Travel down Hwy 431 South, Turn left on Gatewood Dr. Building on the left.
Standard status
Active
Size
2,880 SF
Lot size
0.28 Acres
Taxes and HOA fees
Tax Year
2025
Utilities
Sewer type
Public Sewer
Heating system
Heat Pump (Heating), Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1971
Floors in Building
1
Building materials
SyntheticStucco
Roof type
Asbestos Shingle
Listing Agency:
Keller Williams Realty River C
(334) 298-3900
Listed By:
Joel Babb · License #116607
(706) 577-3781
Added: Feb 16
Changed: Aug 6
Last Checked: Aug 13 at 8:06AM
MLS# E103059
Copyright © 2026 East Alabama Board of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Flex space at 1006 Gatewood Drive offering a versatile interior layout with an open floor plan, multiple work areas, and existing plumbing. The 2,880 square foot building was previously operated as a hair salon and is being sold as-is, with the existing configuration supporting continued salon or spa use while still allowing for conversion to a range of professional uses.
The property sits on a 0.28-acre lot in Phenix City, Russell County, with an accessible approach featuring a ramp. Exterior materials include synthetic stucco and the roof is an asbestos shingle. Central heating is provided by a heat pump, and cooling is central air.
Services on site include public water and public sewer. Built in 1971, the space is designed for customers who want a flexible footprint and ready-to-customize interior.
The property sits on a 0.28-acre lot in Phenix City, Russell County, with an accessible approach featuring a ramp. Exterior materials include synthetic stucco and the roof is an asbestos shingle. Central heating is provided by a heat pump, and cooling is central air.
Services on site include public water and public sewer. Built in 1971, the space is designed for customers who want a flexible footprint and ready-to-customize interior.
Key Highlights
- 2,880 square foot flex space with open floor plan and multiple work areas
- Previously operated as a hair salon; existing plumbing supports salon or spa use
- 0.28‑acre lot with accessible approach featuring a ramp
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
$13,281
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
7.59%
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%
$265,620
$265.6K
Cap Rate 7%
$189,729
$189.7K
Cap Rate 9%
$147,567
$147.6K
Market Conditions
NOI Build-Up for 2,880 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
$20.7K $7.20/SF
− Vacancy
−$1.8K −$0.61/SF
EGI
$19.0K $6.59/SF
− OpEx
−$5.7K −$1.98/SF
NOI
$13.3K $4.61/SF
Area
Lee County, AL
Vacancy
8.50%
Lease Rate
$7.20 /SF/Yr
Expense Ratio
30.00%
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%
$265,620
Cap Rate 7%
$189,729
Cap Rate 9%
$147,567
Alternative Uses
Best Use
Office B
$510.2K
$446.4K – $595.2K
NOI $35,711 @ 7.0% cap · market cap 20.41%
Second Best
Healthcare Medical
$464.0K
$406.0K – $541.3K
NOI $32,478 @ 7.0% cap · market cap 18.56%
Theoretical Best
Office A
$702.4K
$614.6K – $819.5K
NOI $49,169 @ 7.0% cap · market cap 28.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
186
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36869, AL
21,748
Population
10,372
Households
2.1
Avg Household Size
37
Median Age
15%
College-Educated
82%
High-School Grad
76.3 sq mi
ZIP Area
285
Density / Sq Mi
$50,341
Median Household Income
$34,418
Median Earnings
$895
Median Rent
$129,200
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?
Flex space - Flex space in zoning C with an accessible ramp, fenced lot, and adaptable interior for office, medical, or wellness use.
Where is this flex space located?
The property is located at 1006 Gatewood Drive Phenix City, AL.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: 2,880 square foot flex space with open floor plan and multiple work areas; Previously operated as a hair salon; existing plumbing supports salon or spa use; 0.28‑acre lot with accessible approach featuring a ramp
