NNN Leased Medical Office
For Sale
$2,800,000
1088 9th SW Avenue, Bessemer, AL 35022
Medical office building on NNN leases with ample parking and recent roof, HVAC, and reception updates.
Property Size10,093 SF
Price / SF$277.42
Days on Market97
Property Features for 1088 9th SW Avenue
General Information
Standard status
Active
Size
10,093 SF
Total Parking Spaces
55
Property subtype
Commercial/Industrial
Additional Details
Sprinkler System
Yes
Taxes and HOA fees
Annual Taxes
$19,950
Building Details
Year Built
1990
Tenancy
Multi
Listing Agency:
Butler Evans Real Estate, Inc.
(205) 310-3799
Listed By:
Denise Evans · License #AL67727
(205) 310-3799
Source:
Exitrealty
Added: May 6
Changed: Aug 8
Last Checked: Aug 10 at 4:00AM
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 Butler Evans Real Estate, Inc.
Investment Insights
Based on property information with market context.
This NNN leased medical office building is improved with a healthcare tenant mix including internal medicine, nephrology, and a hearing aid clinic. The property totals 10,093 square feet and includes a reception area with flooring replaced in 2025. Several HVAC units have been replaced since purchase, and the roof was replaced in 2024. Outdoor lighting bulbs were replaced in 2024, and the parking lot was re-striped and pressure washed in 2026. A fire suppression system is current on inspections and repairs and is monitored by Hiller Fire.
The property is located at 1088 9th SW Avenue in Bessemer, Alabama and provides 49 parking spaces plus 6 handicapped spaces. Leasing is structured as NNN, and the remarks note that 50% of the tenant base includes a landlord option-to-cancel clause on 6-months’ notice if the property is sold.
For medical practice groups, the tenant setup supports a specialty-focused environment. For buyers, the current NNN lease structure and documented capital updates may be of interest, including the stated advantage that the use of the property can provide a higher percentage of bonus depreciation compared with other investment types.
The property is located at 1088 9th SW Avenue in Bessemer, Alabama and provides 49 parking spaces plus 6 handicapped spaces. Leasing is structured as NNN, and the remarks note that 50% of the tenant base includes a landlord option-to-cancel clause on 6-months’ notice if the property is sold.
For medical practice groups, the tenant setup supports a specialty-focused environment. For buyers, the current NNN lease structure and documented capital updates may be of interest, including the stated advantage that the use of the property can provide a higher percentage of bonus depreciation compared with other investment types.
Key Highlights
- NNN medical office building leased to internal medicine, nephrology, and a hearing aid clinic
- 10,093 SF building with 49 parking spaces plus 6 handicapped spaces
- Roof replaced in 2024; several HVAC units replaced since purchase
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
$177,864
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
6.35%
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%
$3,557,280
$3.6M
Cap Rate 7%
$2,540,914
$2.5M
Cap Rate 9%
$1,976,267
$2.0M
Market Conditions
NOI Build-Up for 10,093 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
$267.7K $26.52/SF
− Vacancy
−$30.5K −$3.02/SF
EGI
$237.2K $23.50/SF
− OpEx
−$59.3K −$5.87/SF
NOI
$177.9K $17.62/SF
Area
Jefferson County, AL
Vacancy
11.40%
Lease Rate
$26.52 /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%
$3,557,280
Cap Rate 7%
$2,540,914
Cap Rate 9%
$1,976,267
Alternative Uses
Best Use
Office B
$2.54M
$2.22M – $2.96M
NOI $177,864 @ 7.0% cap · market cap 6.35%
Second Best
Healthcare Medical
$2.45M
$2.14M – $2.85M
NOI $171,265 @ 7.0% cap · market cap 6.12%
Theoretical Best
Office A
$3.47M
$3.04M – $4.05M
NOI $243,054 @ 7.0% cap · market cap 8.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
412
Businesses Nearby
Explore this area
Business Placement
Demographics for 35022, AL
23,163
Population
10,538
Households
2.2
Avg Household Size
43
Median Age
34%
College-Educated
94%
High-School Grad
64.2 sq mi
ZIP Area
361
Density / Sq Mi
$79,084
Median Household Income
$48,078
Median Earnings
$991
Median Rent
$241,300
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?
Medical center - Medical office building on NNN leases with ample parking and recent roof, HVAC, and reception updates.
Where is this medical center located?
The property is located at 1088 9th SW Avenue Bessemer, AL.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: NNN medical office building leased to internal medicine, nephrology, and a hearing aid clinic; 10,093 SF building with 49 parking spaces plus 6 handicapped spaces; Roof replaced in 2024; several HVAC units replaced since purchase
