Commercial Building on Highway
For Sale
$699,000
34397 Highway 98 West, Lillian, AL 36549
2,200 SF Retail Building For Sale
Property Size2,200 SF
Lot Size1.00 Acre
Price / SF$317.73
Days on Market571
Property Features for 34397 Highway 98 West
General Information
Standard status
Active
Property type
Other retail properties, Individual retail properties, Other office properties, Retail properties & Spaces, Office Spaces
Size
2,200 SF
Net Rentable
2,200 SF
Elevators
N/A
Lot size
1.00 Acre
Building Details
Year Built
1974
Year Renovated
2006
Buildings
1
Stories
1
Listing Agency:
(850) 564-0120
Listed By:
Paul
(850) 564-0120
Added: Feb 6, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This 2,200 square foot commercial building is located on Highway 98 West in downtown Lillian, Alabama. Zoned B4, this high-visibility property boasts 232 linear feet of frontage on Highway 98. The property features 11,000 square feet of existing gravel parking. Access is provided by a permitted 27-foot-wide driveway. The land is level, improved, and fully usable, with existing perimeter and security lighting. The building itself offers 1700 square feet of heated and cooled space, including a lobby, sales area, three additional offices, a kitchen, and two bathrooms. An oversized double garage/workshop provides additional usable space. A new roof was installed in 2022. Sewer access is available at the property's front. The property's strategic location is only a half-mile from a major boat launch and Perdido Bay, and minutes from the Florida state line, capturing traffic from both states. According to AL DOT, the traffic count is 11,694 vehicles. A recently permitted emergency medical facility is under construction nearby, scheduled for completion in 2025, and a Life Flight landing site is directly across the street. This property is ideal for a variety of businesses, including boat dealerships, car/RV dealerships, and restaurants.
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
$25,661
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
3.67%
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%
$513,220
$513.2K
Cap Rate 7%
$366,586
$366.6K
Cap Rate 9%
$285,122
$285.1K
Market Conditions
NOI Build-Up for 2,200 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
$42.2K $19.20/SF
− Vacancy
−$8.0K −$3.65/SF
EGI
$34.2K $15.55/SF
− OpEx
−$8.6K −$3.89/SF
NOI
$25.7K $11.66/SF
Area
Baldwin County, AL
Vacancy
19.00%
Lease Rate
$19.20 /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%
$513,220
Cap Rate 7%
$366,586
Cap Rate 9%
$285,122
Alternative Uses
Best Use
Office B
$366.6K
$320.8K – $427.7K
NOI $25,661 @ 7.0% cap · market cap 3.67%
Second Best
Retail
$338.2K
$295.9K – $394.6K
NOI $23,673 @ 7.0% cap · market cap 3.39%
Theoretical Best
Office A
$529.1K
$462.9K – $617.2K
NOI $37,034 @ 7.0% cap · market cap 5.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
10
Businesses Nearby
Explore this area
Business Placement
Demographics for 36549, AL
5,465
Population
3,042
Households
1.8
Avg Household Size
61
Median Age
26%
College-Educated
94%
High-School Grad
29.0 sq mi
ZIP Area
188
Density / Sq Mi
$65,759
Median Household Income
$31,250
Median Earnings
$845
Median Rent
$198,000
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?
Other retail property - 2,200 SF Retail Building For Sale
Where is this other retail property located?
The property is located at 34397 Highway 98 West Lillian, AL.
What is the asking price?
The asking price for this property is $699,000.
