Commercial Office
For Sale
$260,000
Pending
112 W 2nd Street, Bay Minette, AL 36507
Commercial Sale, Bay Minette, AL
Property Size1,596 SF
Lot Size0.04 Acres
Days on Market76
Property Features for 112 W 2nd Street
General Information
Property type
Residential
Property subtype
Office
Zoning
Commercial
Lot features
Level
Directions
Heading N on Hwy 59/31 in Bay Minette: Take a Right at the light (McDonald's/Hardees) onto D'Olive, turn a left onto Hall Avenue then a right on W 2nd Street. Property will be on the left just past the church.
Subdivision
Baldwin
Standard status
Pending
APN
23-02-09-4-401-018.001
Lot size
0.04 Acres
Taxes and HOA fees
Tax Description
30 X 50 HAND LAND CO ADDN WEST 30 OF LOT 11 BLK 106 FAULK NER REALTY IN THE CITY OF BAY MINETTE SEC 9-T2S-R3E (WD)
Tax Annual Amount
1099
Legal Description
30 X 50 HAND LAND CO ADDN WEST 30 OF LOT 11 BLK 106 FAULK NER REALTY IN THE CITY OF BAY MINETTE SEC 9-T2S-R3E (WD)
Utilities
Heating system
Electric (Heating)
Building Details
Year built
1945
Floors in Building
1
Flooring type
Vinyl
Roof type
Composition, Flat
Listing Agency:
Wellhouse Real Estate Eastern Shore
(251) 709-2233
Listed By:
Gregory Parker · License #142225-1
(251) 263-1088
Added: Jun 18
Changed: Aug 19
Last Checked: Sep 1 at 10:06AM
MLS# 398221
Copyright © 2026 Baldwin 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.
This 1,596-square-foot commercial office building dates to 1945 and occupies a 0.036-acre parcel. Interior finishes include vinyl flooring, while heating is provided by an electric system. The roof assembly includes both composition and flat roof types.
The property is located on W 2nd Street in downtown Bay Minette, Alabama. Commercial zoning supports its office classification and provides a defined framework for evaluating future use.
The property is located on W 2nd Street in downtown Bay Minette, Alabama. Commercial zoning supports its office classification and provides a defined framework for evaluating future use.
Key Highlights
- 1,596‑square‑foot commercial building
- 0.036‑acre parcel in downtown Bay Minette
- Commercial zoning
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
$18,616
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
7.16%
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%
$372,320
$372.3K
Cap Rate 7%
$265,943
$265.9K
Cap Rate 9%
$206,844
$206.8K
Market Conditions
NOI Build-Up for 1,596 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
$30.6K $19.20/SF
− Vacancy
−$5.8K −$3.65/SF
EGI
$24.8K $15.55/SF
− OpEx
−$6.2K −$3.89/SF
NOI
$18.6K $11.66/SF
Area
Baldwin County, AL
Vacancy
19.00%
Lease Rate
$19.20 /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%
$372,320
Cap Rate 7%
$265,943
Cap Rate 9%
$206,844
Alternative Uses
Best Use
Office B
$265.9K
$232.7K – $310.3K
NOI $18,616 @ 7.0% cap · market cap 7.16%
Second Best
Retail
$245.3K
$214.7K – $286.2K
NOI $17,174 @ 7.0% cap · market cap 6.61%
Theoretical Best
Office A
$383.8K
$335.8K – $447.8K
NOI $26,866 @ 7.0% cap · market cap 10.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
577
Businesses Nearby
Explore this area
Business Placement
Demographics for 36507, AL
19,608
Population
8,615
Households
2.3
Avg Household Size
41
Median Age
17%
College-Educated
84%
High-School Grad
343.1 sq mi
ZIP Area
57
Density / Sq Mi
$47,919
Median Household Income
$34,985
Median Earnings
$872
Median Rent
$160,800
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?
Office building - Commercial-zoned office building positioned on W 2nd Street in downtown Bay Minette.
Where is this office building located?
The property is located at 112 W 2nd Street Bay Minette, AL.
What is the asking price?
The asking price for this property is $260,000.
What are key features of this property?
This property features: 1,596‑square‑foot commercial building; 0.036‑acre parcel in downtown Bay Minette; Commercial zoning
