Bessemer Medical Office Investment
For Sale
$2,800,000
1088 9th Avenue SW, Bessemer, AL 35022
SINGLE_FAMILY - Bessemer, AL
Property Size10,093 SF
Lot Size1.64 Acres
Price / SF$277.42
Days on Market449
Property Features for 1088 9th Avenue SW
General Information
Property type
Residential
Property subtype
Office
Directions
From BHM, 20/59 S to exit 110, proceed S on Splash Adventure Pkwy/US 11 to Site, approx. 1.1 miles From Tuscaloosa, 20/59N to exit 108, proceed N on Splash Adventure Pkwy/US 11 to Site, approx. 1.2 miles
Subdivision
(13) Jefferson County
Standard status
Active
APN
01-38-00-19-1-001-002.005
Size
10,093 SF
Lot size
1.64 Acres
Taxes and HOA fees
Tax Description
Metes and bounds. See photo. Source of Title at Instrument 2022081128
Tax Annual Amount
19950
Legal Description
Metes and bounds. See photo. Source of Title at Instrument 2022081128
Building Details
Year built
1990
Number of units
3
Listing Agency:
Butler Evans Real Estate, Inc.
(205) 310-3799
Listed By:
Denise Evans · License #AL67727
(205) 310-3799
Added: May 20, 2025
Changed: May 11
Last Checked: Aug 10 at 11:06PM
MLS# 168859
Copyright © 2026 West Alabama Multiple Listing Service. 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.
This 10,093 square foot commercial real estate property in Bessemer, Alabama, presents a desirable investment opportunity. Situated on a 1.637-acre lot, the property features 49 parking spaces, plus 6 handicapped spaces. The property is currently occupied by tenants in the medical field, including internal medicine, nephrology, and a hearing aid clinic, all under NNN leases. One tenant, occupying 50% of the space, has a landlord option-to-cancel clause with 6-months' notice if the property is sold. Recent improvements include a roof replacement in 2024, several HVAC unit replacements since purchase, reception flooring replaced in 2025, and outdoor lighting bulb replacements in 2024. The parking lot was restriped and the building pressure washed in 2026. The fire suppression system is current on inspections and repairs and is monitored by Hiller Fire. The property's use allows for a higher percentage of bonus depreciation compared to other investment types.
Key Highlights
- NNN leases in place with medical tenants (internal medicine, nephrology, hearing aid clinic).
- Recent capital improvements: new roof (2024), new outdoor lighting (2024), parking lot restriped and building pressure washed (2026).
- Higher percentage of bonus depreciation due to property use.
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
$177,864
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
6.35%
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%
$3,557,280
$3.6M
Cap Rate 7%
$2,540,914
$2.5M
Cap Rate 9%
$1,976,267
$2.0M
Market Conditions
NOI Build-Up for 10,093 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
$267.7K $26.52/SF
− Vacancy
−$30.5K −$3.02/SF
EGI
$237.2K $23.50/SF
− OpEx
−$59.3K −$5.87/SF
NOI
$177.9K $17.62/SF
Area
Jefferson County, AL
Vacancy
11.40%
Lease Rate
$26.52 /SF/Yr
Expense Ratio
25.00%
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%
$3,557,280
Cap Rate 7%
$2,540,914
Cap Rate 9%
$1,976,267
Alternative Uses
Best Use
Office B
$2.54M
$2.22M – $2.96M
NOI $177,864 @ 7.0% cap · market cap 6.35%
Second Best
Healthcare Medical
$2.45M
$2.14M – $2.85M
NOI $171,265 @ 7.0% cap · market cap 6.12%
Theoretical Best
Office A
$3.47M
$3.04M – $4.05M
NOI $243,054 @ 7.0% cap · market cap 8.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
412
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 35022, AL
23,163
Population
10,538
Households
2.2
Avg Household Size
43
Median Age
34%
College-Educated
94%
High-School Grad
64.2 sq mi
ZIP Area
361
Density / Sq Mi
$79,084
Median Household Income
$48,078
Median Earnings
$991
Median Rent
$241,300
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - NNN leased medical office building with strong tenant mix.
Where is this medical office space located?
The property is located at 1088 9th Avenue SW Bessemer, AL.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: NNN leases in place with medical tenants (internal medicine, nephrology, hearing aid clinic).; Recent capital improvements: new roof (2024), new outdoor lighting (2024), parking lot restriped and building pressure washed (2026).; Higher percentage of bonus depreciation due to property use.
