Two-Story Historic Office
For Sale
Contact for pricing
1032 26th St S, Birmingham, AL 35205
Located in Birmingham’s UAB/Medical District with QO&I zoning.
Property Size2,440 SF
Price / SF$143.44
Days on Market188
Property Features for 1032 26th St S
General Information
Standard status
Active
Size
2,440 SF
Class
C
Property subtype
Office
Zoning
QO&I
Building Details
Year Built
1925
Buildings
1
Stories
2
Listing Agency:
Red Rock Realty Group
Listed By:
Glenn Ponder · License #000071263
Source:
Crexi
Added: Feb 24
Changed: Aug 30
Last Checked: Aug 30 at 1:31AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Red Rock Realty Group
Investment Insights
Based on property information with market context.
This two-story office building at 1032 26th St S contains 2,440 square feet and dates to 1925. The property is identified as a historic commercial structure and is zoned QO&I.
The building is in Birmingham’s UAB/Medical District, positioned between the Southside medical core and the Highland Park neighborhood. Its location places the office asset within a defined medical and established residential context, while the two-story configuration provides a distinct physical profile for the property.
The building is in Birmingham’s UAB/Medical District, positioned between the Southside medical core and the Highland Park neighborhood. Its location places the office asset within a defined medical and established residential context, while the two-story configuration provides a distinct physical profile for the property.
Key Highlights
- 2,440‑square‑foot office building
- Two‑story historic commercial structure
- Built in 1925
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
$29,306
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
8.37%
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%
$586,120
$586.1K
Cap Rate 7%
$418,657
$418.7K
Cap Rate 9%
$325,622
$325.6K
Market Conditions
NOI Build-Up for 2,440 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
$49.8K $20.40/SF
− Vacancy
−$10.7K −$4.39/SF
EGI
$39.1K $16.01/SF
− OpEx
−$9.8K −$4.00/SF
NOI
$29.3K $12.01/SF
Area
Birmingham, AL
Vacancy
21.50%
Lease Rate
$20.40 /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%
$586,120
Cap Rate 7%
$418,657
Cap Rate 9%
$325,622
Alternative Uses
Best Use
Office B
$418.7K
$366.3K – $488.4K
NOI $29,306 @ 7.0% cap · market cap 8.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$572.7K
$501.1K – $668.2K
NOI $40,090 @ 7.0% cap · market cap 11.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,313
Businesses Nearby
Explore this area
Business Placement
Demographics for 35205, AL
20,137
Population
11,908
Households
1.7
Avg Household Size
30
Median Age
56%
College-Educated
95%
High-School Grad
3.7 sq mi
ZIP Area
5,442
Density / Sq Mi
$49,194
Median Household Income
$35,230
Median Earnings
$1,005
Median Rent
$292,000
Median Home Value
Market
Vacancy Rate% for Office in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Located in Birmingham’s UAB/Medical District with QO&I zoning.
Where is this office building located?
The property is located at 1032 26th St S Birmingham, AL.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 2,440‑square‑foot office building; Two‑story historic commercial structure; Built in 1925
