20-Room Medical Office
For Sale
$625,000
3212 Rainbow Drive, Rainbow City, AL 35906
Business Opportunity, Rainbow City, AL
Property Size4,098 SF
Price / SF$152.51
Days on Market72
Property Features for 3212 Rainbow Drive
General Information
Property type
Residential
Property subtype
Office
Zoning description
Commercial
Bathrooms
7
Full bathrooms
7
Rooms
Bathroom 5, Bathroom 4, Bathroom 7, Bathroom 1, Bathroom 6, Bathroom 3, Bathroom 2
Lot features
High Visibility
Directions
411 South From Gadsden Office On Left Before Sonic.
Standard status
Active
APN
1509291000097.000
Size
4,098 SF
Utilities
Sewer type
Public Sewer
Heating system
Heat Pump (Heating)
Cooling system
Central Air
Water source
Public
Building Details
Floors in Building
1
Flooring type
Vinyl, Carpet
Roof type
Shingle
Listing Agency:
Clokey Realty Inc
(256) 442-1000
Listed By:
David Clokey · License #16999
(256) 442-1170
Added: Jun 29
Changed: Sep 2
Last Checked: Sep 8 at 11:06AM
MLS# 21922185
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 4,098 SF medical office building contains 20 rooms arranged for clinical and professional office functions. The layout includes private offices, exam rooms, reception and waiting areas, a file room, break room, and restrooms. Vinyl and carpet flooring are installed throughout, with central air and heat pump heating.
Located on Rainbow Drive in Rainbow City, the property offers road frontage, on-site parking, and visible signage placement. Public water and public sewer serve the building. The roof is shingle construction, and the existing configuration supports medical office use as well as other professional office applications.
Located on Rainbow Drive in Rainbow City, the property offers road frontage, on-site parking, and visible signage placement. Public water and public sewer serve the building. The roof is shingle construction, and the existing configuration supports medical office use as well as other professional office applications.
Key Highlights
- 4,098 SF medical office building
- 20‑room layout with offices, exam rooms, reception, and waiting areas
- Includes file room, break room, and restrooms
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
$43,572
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
6.97%
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%
$871,440
$871.4K
Cap Rate 7%
$622,457
$622.5K
Cap Rate 9%
$484,133
$484.1K
Market Conditions
NOI Build-Up for 4,098 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
$81.1K $19.80/SF
− Vacancy
−$8.5K −$2.08/SF
EGI
$72.6K $17.72/SF
− OpEx
−$29.0K −$7.09/SF
NOI
$43.6K $10.63/SF
Area
Etowah County, AL
Vacancy
10.50%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
40.00%
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%
$871,440
Cap Rate 7%
$622,457
Cap Rate 9%
$484,133
Alternative Uses
Best Use
Healthcare Medical
$622.5K
$544.7K – $726.2K
NOI $43,572 @ 7.0% cap · market cap 6.97%
Second Best
Office B
$378.1K
$330.8K – $441.1K
NOI $26,467 @ 7.0% cap · market cap 4.23%
Theoretical Best
Specialty Retail
$670.0K
$586.3K – $781.7K
NOI $46,903 @ 7.0% cap · market cap 7.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
601
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35906, AL
10,444
Population
4,743
Households
2.2
Avg Household Size
42
Median Age
22%
College-Educated
85%
High-School Grad
35.0 sq mi
ZIP Area
298
Density / Sq Mi
$58,896
Median Household Income
$41,701
Median Earnings
$998
Median Rent
$199,500
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.
Similar Off Market Nearby
- Rainbow City Pet Clinic — 3006 Rainbow Dr, Rainbow City, AL 35906
Frequently Asked Questions
What type of property is this?
Medical Office Space - Configured for medical and professional office operations with reception, examination, administrative, and support areas.
Where is this medical office space located?
The property is located at 3212 Rainbow Drive Rainbow City, AL.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: 4,098 SF medical office building; 20‑room layout with offices, exam rooms, reception, and waiting areas; Includes file room, break room, and restrooms
