Decatur Industrial/Flex Space For
For Sale
$499,000
1225 5th Ave SE, Decatur, AL 35601
5,250 SF industrial/flex space with laydown yard in Decatur.
Property Size5,250 SF
Days on Market281
Property Features for 1225 5th Ave SE
General Information
Standard status
Active
Size
5,250 SF
Property subtype
Flex Office
Building Details
Building Size
5,250 SF
Listing Agency:
(256) 382-9012
Listed By:
George Twitty, Jr.
Source:
Grahamcompany
Added: Nov 21, 2025
Changed: Aug 16
Last Checked: Aug 29 at 6:13AM
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 George Twitty, Jr.
Investment Insights
Based on property information with market context.
This 5,250 square foot industrial/flex space is situated on 0.8 acres and is suitable for a range of industrial/flex uses. The building is divided into 50% conditioned office area and 50% non-conditioned warehouse space. A laydown yard area with a separate entrance is located at the rear of the property, providing outside storage. The property is zoned RD and is located in an industrial/commercial district in Decatur, Alabama. It is one block from Highway 31 (6th Avenue) and offers convenient access to Alt Hwy 72 and I-65. The surrounding area includes commercial establishments such as Walmart Neighborhood Center, Walgreen's, McDonald's, and Shine Time Car Wash. The location provides access to major traffic arteries serving north Alabama and south/middle Tennessee.
Key Highlights
- Prime location with near immediate access to Highway 31 and convenient access to Alt Hwy 72 and I‑65.
- 5,250 SF industrial/flex space** suitable for a range of industrial/flex uses.
- Zoned RD, offering an attractive investment opportunity in the Decatur 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
$31,541
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
6.32%
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%
$630,820
$630.8K
Cap Rate 7%
$450,586
$450.6K
Cap Rate 9%
$350,456
$350.5K
Market Conditions
NOI Build-Up for 5,250 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
$52.3K $9.96/SF
− Vacancy
−$3.8K −$0.72/SF
EGI
$48.5K $9.24/SF
− OpEx
−$17.0K −$3.24/SF
NOI
$31.5K $6.01/SF
Area
Morgan County, AL
Vacancy
7.20%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
35.00%
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%
$630,820
Cap Rate 7%
$450,586
Cap Rate 9%
$350,456
Alternative Uses
Best Use
Flex RnD
$450.6K
$394.3K – $525.7K
NOI $31,541 @ 7.0% cap · market cap 6.32%
Second Best
Warehouse
$442.0K
$386.8K – $515.7K
NOI $30,943 @ 7.0% cap · market cap 6.20%
Theoretical Best
Office A
$1.09M
$955.7K – $1.27M
NOI $76,457 @ 7.0% cap · market cap 15.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
783
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35601, AL
34,958
Population
15,168
Households
2.3
Avg Household Size
38
Median Age
18%
College-Educated
77%
High-School Grad
26.5 sq mi
ZIP Area
1,319
Density / Sq Mi
$50,216
Median Household Income
$33,438
Median Earnings
$860
Median Rent
$148,100
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 5,250 SF industrial/flex space with laydown yard in Decatur.
Where is this flex space located?
The property is located at 1225 5th Ave SE Decatur, AL.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: Prime location with near immediate access to Highway 31 and convenient access to Alt Hwy 72 and I‑65.; 5,250 SF industrial/flex space** suitable for a range of industrial/flex uses.; Zoned RD, offering an attractive investment opportunity in the Decatur area.
