Flex Property with Fenced
New
For Sale
$279,900
725 Murray Road, Dothan, AL 36303
Commercial Sale, Dothan, AL
Property Size3,150 SF
Lot Size0.40 Acres
Price / SF$88.86
Days on Market2
Property Features for 725 Murray Road
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
8 NW-Outside Circle
Standard status
Active
APN
09-01-12-2-000-011.001
Lot size
0.40 Acres
Building Details
Year built
1979
Floors in Building
1
Listing Agency:
Berkshire Hathaway HomeServices Showcase Properties
(334) 792-7474
Listed By:
Amy Portwood
(334) 791-9089
Added: Aug 31
Last Checked: Sep 1 at 1:06AM
MLS# 214626
Copyright © 2026 Southeast Alabama Association of 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 3,150-square-foot flex property combines professional office space with warehouse and storage areas. The office component includes a reception and lobby area, four offices, two restrooms, a kitchen and break room, plus additional storage. The warehouse provides operational space for equipment, inventory, or storage and includes two roll-up doors.
Set on 0.4 acres at 725 Murray Road in Dothan, the property also offers paved parking and a fenced yard for outdoor storage or equipment. Built in 1979, the layout supports a range of commercial, service, trade, and light industrial uses.
Set on 0.4 acres at 725 Murray Road in Dothan, the property also offers paved parking and a fenced yard for outdoor storage or equipment. Built in 1979, the layout supports a range of commercial, service, trade, and light industrial uses.
Key Highlights
- 3,150‑square‑foot flex property with office, warehouse, and storage areas
- Four offices, two restrooms, reception and lobby, kitchen and break room
- Warehouse includes two roll‑up doors for equipment and inventory access
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
$24,261
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
8.67%
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%
$485,220
$485.2K
Cap Rate 7%
$346,586
$346.6K
Cap Rate 9%
$269,567
$269.6K
Market Conditions
NOI Build-Up for 3,150 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
$39.7K $12.60/SF
− Vacancy
−$7.3K −$2.33/SF
EGI
$32.3K $10.27/SF
− OpEx
−$8.1K −$2.57/SF
NOI
$24.3K $7.70/SF
Area
Houston County, AL
Vacancy
18.50%
Lease Rate
$12.60 /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%
$485,220
Cap Rate 7%
$346,586
Cap Rate 9%
$269,567
Alternative Uses
Best Use
Office B
$346.6K
$303.3K – $404.4K
NOI $24,261 @ 7.0% cap · market cap 8.67%
Second Best
Flex RnD
$256.4K
$224.3K – $299.1K
NOI $17,946 @ 7.0% cap · market cap 6.41%
Theoretical Best
Healthcare Medical
$556.8K
$487.2K – $649.6K
NOI $38,973 @ 7.0% cap · market cap 13.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
276
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 36303, AL
31,080
Population
14,622
Households
2.1
Avg Household Size
39
Median Age
28%
College-Educated
88%
High-School Grad
58.9 sq mi
ZIP Area
528
Density / Sq Mi
$53,006
Median Household Income
$34,504
Median Earnings
$855
Median Rent
$175,600
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?
Flex space - Office and warehouse components support service, trade, and light industrial operations with fenced outdoor storage.
Where is this flex space located?
The property is located at 725 Murray Road Dothan, AL.
What is the asking price?
The asking price for this property is $279,900.
What are key features of this property?
This property features: 3,150‑square‑foot flex property with office, warehouse, and storage areas; Four offices, two restrooms, reception and lobby, kitchen and break room; Warehouse includes two roll‑up doors for equipment and inventory access
