Medical Office Building with
For Sale
$474,900
154 S Main Street, Arab, AL 35016
MULTI_FAMILY - Arab, AL
Property Size6,000 SF
Lot Size0.64 Acres
Price / SF$79.15
Days on Market9
Property Features for 154 S Main Street
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning description
Commercial
Bathrooms
8
Full bathrooms
8
Rooms
Bathroom 7, Bathroom 5, Basement, Bathroom 6, Bathroom 2, Bathroom 3, Bathroom 1, Bathroom 4, Bathroom 8
Exterior features
Sidewalks, Lighting
Accessibility
Accessible Doors
Lot features
High Visibility
Directions
In Arab On Main Street, Property Is On The Right (Going South) With Sign
Standard status
Active
APN
1307261001055.000
Size
6,000 SF
Lot size
0.64 Acres
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1984
Floors in Building
2
Flooring type
Carpet, Wood, Concrete, Tile
Listing Agency:
Re/Max Heritage · RE/MAX International
(256) 586-4410
Listed By:
Brenda King · License #97861
(256) 550-2101
Added: Aug 5
Changed: Aug 11
Last Checked: Aug 13 at 11:06AM
MLS# 21863749
Copyright © 2026 ValleyMLS.Com,Inc. 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 6,000-square-foot medical office building sits on 0.6382 acres and was constructed in 1984. The interior was arranged for two separate physician practices and includes a central divider beam, basement space, multiple bathrooms, and a mix of wood, tile, carpet, and concrete flooring. Two existing central units are new, and the building is expected to be vacant by closing.
Central heating and cooling, accessible doors, public water, and public sewer support continued commercial use. Exterior features include sidewalks, lighting, front parking, and a grassy area behind the building. The existing separation and basement provide a defined physical layout for an owner seeking medical office space or another compatible configuration.
Central heating and cooling, accessible doors, public water, and public sewer support continued commercial use. Exterior features include sidewalks, lighting, front parking, and a grassy area behind the building. The existing separation and basement provide a defined physical layout for an owner seeking medical office space or another compatible configuration.
Key Highlights
- 6,000‑square‑foot medical office building on 0.6382 acres
- Previously configured for two separate physician practices
- Basement and central divider beam provide distinct interior areas
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
$32,478
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
6.84%
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%
$649,560
$649.6K
Cap Rate 7%
$463,971
$464.0K
Cap Rate 9%
$360,867
$360.9K
Market Conditions
NOI Build-Up for 6,000 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
$63.4K $10.56/SF
− Vacancy
−$4.3K −$0.72/SF
EGI
$59.1K $9.84/SF
− OpEx
−$26.6K −$4.43/SF
NOI
$32.5K $5.41/SF
Area
Marshall County, AL
Vacancy
6.80%
Lease Rate
$10.56 /SF/Yr
Expense Ratio
45.00%
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%
$649,560
Cap Rate 7%
$463,971
Cap Rate 9%
$360,867
Alternative Uses
Best Use
Healthcare Medical
$994.2K
$869.9K – $1.16M
NOI $69,595 @ 7.0% cap · market cap 14.65%
Second Best
Office B
$966.2K
$845.4K – $1.13M
NOI $67,635 @ 7.0% cap · market cap 14.24%
Theoretical Best
Office A
$1.30M
$1.13M – $1.51M
NOI $90,651 @ 7.0% cap · market cap 19.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
88
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 35016, AL
17,495
Population
7,372
Households
2.4
Avg Household Size
42
Median Age
22%
College-Educated
89%
High-School Grad
79.0 sq mi
ZIP Area
221
Density / Sq Mi
$60,910
Median Household Income
$36,939
Median Earnings
$758
Median Rent
$192,900
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 - Former two-physician office with basement, central HVAC, and front parking.
Where is this medical office space located?
The property is located at 154 S Main Street Arab, AL.
What is the asking price?
The asking price for this property is $474,900.
What are key features of this property?
This property features: 6,000‑square‑foot medical office building on 0.6382 acres; Previously configured for two separate physician practices; Basement and central divider beam provide distinct interior areas
