Fairhope Commercial Lot on
For Sale
$650,000
18999 AL-181, Fairhope, AL 36532
4,390 SF Commercial Lot on AL-181 For Sale
Property Size4,390 SF
Lot Size0.62 Acres
Price / SF$148.06
Days on Market572
Property Features for 18999 AL-181
General Information
Standard status
Active
Property type
Other retail properties, Individual retail properties, Other mixed-use properties, Retail properties & Spaces, Mixed-use properties
Size
4,390 SF
Elevators
N/A
Lot size
0.62 Acres
Building Details
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 commercial lot is located at the southwest corner of Twin Beech Road and Alabama Highway 181 in Fairhope, Alabama. The property is situated in Baldwin County within a rapidly expanding area experiencing high traffic volume. The lot measures 4,390 square feet, equivalent to 0.62 acres. It is zoned B-2 Local Business Planning District 8, offering a range of development possibilities. A small billboard is included in the sale. The property presents a chance to capitalize on the growth and potential of this thriving commercial area.
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
$47,238
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
7.27%
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%
$944,760
$944.8K
Cap Rate 7%
$674,829
$674.8K
Cap Rate 9%
$524,867
$524.9K
Market Conditions
NOI Build-Up for 4,390 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
$73.8K $16.80/SF
− Vacancy
−$6.3K −$1.43/SF
EGI
$67.5K $15.37/SF
− OpEx
−$20.2K −$4.61/SF
NOI
$47.2K $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%
$944,760
Cap Rate 7%
$674,829
Cap Rate 9%
$524,867
Alternative Uses
Best Use
Retail
$674.8K
$590.5K – $787.3K
NOI $47,238 @ 7.0% cap · market cap 7.27%
Second Best
Mixed Use
$581.0K
$508.4K – $677.9K
NOI $40,671 @ 7.0% cap · market cap 6.26%
Theoretical Best
Office A
$1.06M
$923.8K – $1.23M
NOI $73,900 @ 7.0% cap · market cap 11.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
31
Businesses Nearby
Explore this area
Business Placement
Demographics for 36532, AL
36,918
Population
17,502
Households
2.1
Avg Household Size
48
Median Age
50%
College-Educated
94%
High-School Grad
73.2 sq mi
ZIP Area
504
Density / Sq Mi
$86,026
Median Household Income
$46,129
Median Earnings
$1,374
Median Rent
$395,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Other retail property - 4,390 SF Commercial Lot on AL-181 For Sale
Where is this other retail property located?
The property is located at 18999 AL-181 Fairhope, AL.
What is the asking price?
The asking price for this property is $650,000.
