Creative Space with
For Sale
$96,900
215 NW 3rd Avenue NW, Arab, AL 35016
Business Opportunity, Arab, AL
Property Size636 SF
Lot Size0.25 Acres
Price / SF$152.36
Days on Market89
Property Features for 215 NW 3rd Avenue NW
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business, Commercial
Parking features
Driveway, Oversize
Exterior features
Sidewalks, Curb/Gutters
Directions
North On Main Street / Al-69 Turn Right Onto 3rd Avenue Nw. Business Is Located At 215 3rd Avenue Nw. Or South On Main Street / Al-69 Turn Left Onto 3rd Avenue Nw.
Standard status
Active
Size
636 SF
Lot size
0.25 Acres
Utilities
Sewer type
Public Sewer
Cooling system
Central Air
Water source
Public
Building Details
Floors in Building
1
Flooring type
Carpet, Vinyl
Roof type
Metal
Listing Agency:
1st Real Estate, LLC
(256) 486-3775
Listed By:
Patricia Swindle · License #113352
(256) 744-6225
Added: Jul 1
Changed: Sep 12
Last Checked: Sep 27 at 12:06PM
MLS# 21921926
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Investment Insights
Based on property information with market context.
This 636-square-foot creative space is a brick building with a metal roof, carpet and vinyl flooring, central air, and a half bath. The building sits on a 0.25-acre parcel and includes driveway and oversized parking, with sidewalks and curb-and-gutter improvements along the property.
Located downtown in Arab, Alabama, just off Main Street, the property has access to public water and public sewer. Commercial and residential zoning provides flexibility for an owner seeking a small-scale workspace or another supported use. The space operated as a recording studio for the past 10 years.
Located downtown in Arab, Alabama, just off Main Street, the property has access to public water and public sewer. Commercial and residential zoning provides flexibility for an owner seeking a small-scale workspace or another supported use. The space operated as a recording studio for the past 10 years.
Key Highlights
- 636‑square‑foot brick building with metal roof
- 0.25‑acre parcel with oversized parking and driveway
- Zoned for both commercial and residential 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
$7,169
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
7.40%
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%
$143,380
$143.4K
Cap Rate 7%
$102,414
$102.4K
Cap Rate 9%
$79,656
$79.7K
Market Conditions
NOI Build-Up for 636 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
$11.4K $18.00/SF
− Vacancy
−$1.9K −$2.97/SF
EGI
$9.6K $15.03/SF
− OpEx
−$2.4K −$3.76/SF
NOI
$7.2K $11.27/SF
Area
Marshall County, AL
Vacancy
16.50%
Lease Rate
$18.00 /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%
$143,380
Cap Rate 7%
$102,414
Cap Rate 9%
$79,656
Alternative Uses
Best Use
Office B
$102.4K
$89.6K – $119.5K
NOI $7,169 @ 7.0% cap · market cap 7.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$137.3K
$120.1K – $160.2K
NOI $9,609 @ 7.0% cap · market cap 9.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
482
Businesses Nearby
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Creative space - Compact commercial property with dual commercial and residential zoning, central air, public utilities, and a half bath.
Where is this creative space located?
The property is located at 215 NW 3rd Avenue NW Arab, AL.
What is the asking price?
The asking price for this property is $96,900.
What are key features of this property?
This property features: 636‑square‑foot brick building with metal roof; 0.25‑acre parcel with oversized parking and driveway; Zoned for both commercial and residential use
