Multi-Space Office
For Sale
$325,000
1803 Somerville Road, Decatur, AL 35601
Business Opportunity, Decatur, AL
Property Size2,400 SF
Lot Size0.15 Acres
Price / SF$135.42
Days on Market31
Property Features for 1803 Somerville Road
General Information
Property type
Residential
Property subtype
Office
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bathroom 1
Accessibility
Accessible Doors
Directions
From I565 W Heading To Decatur Continue On Us72 Alt W And Turn L Onto Church St, Then R Onto Somerville. Follow Somerville Rd Until You Reach 1803 Somerville Rd On The Right.
Standard status
Active
APN
0309294003009.004
Size
2,400 SF
Lot size
0.15 Acres
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Year built
1987
Floors in Building
1
Flooring type
Carpet, Vinyl
Roof type
Shingle
Listing Agency:
Keller Williams Realty Madison
(256) 319-3700
Listed By:
Patricia Kruse · License #126560
(256) 542-1894
Added: Aug 1
Changed: Aug 26
Last Checked: Aug 31 at 2:06PM
MLS# 21925370
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.
Built in 1987, this 2,400-square-foot office property occupies 0.15 acres and is arranged around four sizable office spaces with distinct layouts. One space is vacant and was previously used as a hair salon. Another includes a bathroom with a stand-up shower, while the entrance hall provides both an accessible bathroom and a regular bathroom. Vinyl and carpet flooring are installed throughout the property.
Recent improvements include a new shingle roof and upgraded electrical service. Front and rear entry doors support access from both sides of the building, and accessible doors are provided. The property is served by public water and public sewer and is located in Decatur, Alabama.
Recent improvements include a new shingle roof and upgraded electrical service. Front and rear entry doors support access from both sides of the building, and accessible doors are provided. The property is served by public water and public sewer and is located in Decatur, Alabama.
Key Highlights
- 2,400‑square‑foot office property on 0.15 acres
- Four office spaces with varied layouts
- New shingle roof and upgraded electrical service
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
$24,430
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
7.52%
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%
$488,600
$488.6K
Cap Rate 7%
$349,000
$349.0K
Cap Rate 9%
$271,444
$271.4K
Market Conditions
NOI Build-Up for 2,400 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
$41.8K $17.40/SF
− Vacancy
−$9.2K −$3.83/SF
EGI
$32.6K $13.57/SF
− OpEx
−$8.1K −$3.39/SF
NOI
$24.4K $10.18/SF
Area
Morgan County, AL
Vacancy
22.00%
Lease Rate
$17.40 /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%
$488,600
Cap Rate 7%
$349,000
Cap Rate 9%
$271,444
Alternative Uses
Best Use
Office B
$349.0K
$305.4K – $407.2K
NOI $24,430 @ 7.0% cap · market cap 7.52%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$499.3K
$436.9K – $582.5K
NOI $34,952 @ 7.0% cap · market cap 10.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Office units
Location Intelligence
Trade Area within ½ mile
805
Businesses Nearby
Explore this area
Business Placement
Demographics for 35601, AL
34,958
Population
15,168
Households
2.3
Avg Household Size
38
Median Age
18%
College-Educated
77%
High-School Grad
26.5 sq mi
ZIP Area
1,319
Density / Sq Mi
$50,216
Median Household Income
$33,438
Median Earnings
$860
Median Rent
$148,100
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?
Office units - Flexible commercial layout with upgraded electrical service, a new roof, multiple bathrooms, and accessible doors.
Where is this office units located?
The property is located at 1803 Somerville Road Decatur, AL.
What is the asking price?
The asking price for this property is $325,000.
What are key features of this property?
This property features: 2,400‑square‑foot office property on 0.15 acres; Four office spaces with varied layouts; New shingle roof and upgraded electrical service
