Highway Retail
For Sale
$1,500,000
616 Gulf Shores Parkway, Gulf Shores, AL 36542
Commercial Sale, Gulf Shores, AL
Property Size4,880 SF
Lot Size0.30 Acres
Price / SF$307.38
Days on Market454
Property Features for 616 Gulf Shores Parkway
General Information
Property type
Residential
Property subtype
Retail
Zoning
OtherSeeRemarks,WithinCor
Lot features
Irregular/ See Remarks
Directions
Highway 59, South of Windmill Ridge Road located on the east side of Highway 59.
Subdivision
Baldwin
Standard status
Active
APN
66-04-20-1-000-004.000
Lot size
0.30 Acres
Taxes and HOA fees
Tax Description
98(S) X 166.43 IRR FM INTER OF E R W OF HWY 59 & N ROW E P ARK LANE, RUN NE ALG HWY 59 146.7 TO POB CONT TH NE 98(S), TH ELY 120(S), TH SLY 93.19, TH WLY 166.43 TO POB SEC 20-T9S-R4E (VL)
Tax Annual Amount
6424
Legal Description
98(S) X 166.43 IRR FM INTER OF E R W OF HWY 59 & N ROW E P ARK LANE, RUN NE ALG HWY 59 146.7 TO POB CONT TH NE 98(S), TH ELY 120(S), TH SLY 93.19, TH WLY 166.43 TO POB SEC 20-T9S-R4E (VL)
Utilities
Heating system
Electric (Heating)
Building Details
Year built
1972
Floors in Building
1
Flooring type
Concrete
Roof type
Metal
Listing Agency:
RE/MAX Paradise
(251) 948-8000
Listed By:
Bob Shallow · License #13654-1
(251) 948-8888
Added: Jun 9, 2025
Changed: Aug 19
Last Checked: Sep 5 at 7:06AM
MLS# 380778
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 retail property provides approximately 4,880 square feet of commercial space on a 0.3-acre parcel. Built in 1972, the building includes concrete flooring, electric heating, and a metal roof. Its position along Highway 59 gives the site approximately 98 feet of highway frontage.
The property is located in Gulf Shores, approximately half a mile north of the beaches. The surrounding setting serves both local and visitor-oriented activity, with the site positioned on a principal corridor through the coastal market. The property is offered for sale, and the buyer is responsible for verifying all information during due diligence.
The property is located in Gulf Shores, approximately half a mile north of the beaches. The surrounding setting serves both local and visitor-oriented activity, with the site positioned on a principal corridor through the coastal market. The property is offered for sale, and the buyer is responsible for verifying all information during due diligence.
Key Highlights
- Approximately 4,880+/- SF of retail space
- Approximately 98' of frontage on Highway 59
- 0.3‑acre commercial parcel in Gulf Shores
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
$52,511
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
3.50%
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%
$1,050,220
$1.1M
Cap Rate 7%
$750,157
$750.2K
Cap Rate 9%
$583,456
$583.5K
Market Conditions
NOI Build-Up for 4,880 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
$82.0K $16.80/SF
− Vacancy
−$7.0K −$1.43/SF
EGI
$75.0K $15.37/SF
− OpEx
−$22.5K −$4.61/SF
NOI
$52.5K $10.76/SF
Area
Baldwin County, AL
Vacancy
8.50%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
30.00%
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%
$1,050,220
Cap Rate 7%
$750,157
Cap Rate 9%
$583,456
Alternative Uses
Best Use
Retail
$750.2K
$656.4K – $875.2K
NOI $52,511 @ 7.0% cap · market cap 3.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.17M
$1.03M – $1.37M
NOI $82,148 @ 7.0% cap · market cap 5.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
356
Businesses Nearby
Explore this area
Business Placement
Demographics for 36542, AL
16,993
Population
18,551
Households
0.9
Avg Household Size
51
Median Age
38%
College-Educated
95%
High-School Grad
52.0 sq mi
ZIP Area
327
Density / Sq Mi
$74,861
Median Household Income
$35,580
Median Earnings
$1,365
Median Rent
$366,600
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail space - Freestanding retail property with highway exposure and a compact commercial footprint near Gulf Shores beaches.
Where is this retail space located?
The property is located at 616 Gulf Shores Parkway Gulf Shores, AL.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Approximately 4,880+/- SF of retail space; Approximately 98' of frontage on Highway 59; 0.3‑acre commercial parcel in Gulf Shores
