Office Building Near
For Sale
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120 Cahaba Valley Pkwy, Pelham, AL 35124
Office building on 6.56 acres with I-65 visibility.
Property Size28,600 SF
Lot Size6.56 Acres
Price / SF$181.16
Days on Market161
Property Features for 120 Cahaba Valley Pkwy
General Information
Standard status
Active
Size
28,600 SF
Class
B
Lot size
6.56 Acres
Property subtype
Office
Zoning
B2
Occupancy
100%
Investment Type
Sale/Leaseback
Net Operating Income
$388,598
Building Details
Year Built
1995
Year Renovated
2012
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
Veritas
Listed By:
Peter Jameson · License #AL
Source:
Crexi
Added: Mar 2
Changed: Aug 8
Last Checked: Aug 9 at 7:50AM
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 Veritas
Investment Insights
Based on property information with market context.
This commercial property is an office building situated on 6.56 acres. The property benefits from visibility from Interstate 65 and is located just south of Birmingham, within the Birmingham Metropolitan Statistical Area. The building has a size of 28,600 square feet.
Key Highlights
- 6.56‑acre property
- Great visibility from I‑65
- Located south of Birmingham
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
$301,158
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
5.81%
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%
$6,023,160
$6.0M
Cap Rate 7%
$4,302,257
$4.3M
Cap Rate 9%
$3,346,200
$3.3M
Market Conditions
NOI Build-Up for 28,600 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
$514.8K $18.00/SF
− Vacancy
−$113.3K −$3.96/SF
EGI
$401.5K $14.04/SF
− OpEx
−$100.4K −$3.51/SF
NOI
$301.2K $10.53/SF
Area
Shelby County, AL
Vacancy
22.00%
Lease Rate
$18.00 /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%
$6,023,160
Cap Rate 7%
$4,302,257
Cap Rate 9%
$3,346,200
Alternative Uses
Best Use
Office B
$4.30M
$3.76M – $5.02M
NOI $301,158 @ 7.0% cap · market cap 5.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.71M
$5.87M – $7.83M
NOI $469,909 @ 7.0% cap · market cap 9.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,086
Businesses Nearby
Explore this area
Business Placement
Demographics for 35124, AL
25,667
Population
10,207
Households
2.5
Avg Household Size
40
Median Age
50%
College-Educated
95%
High-School Grad
42.6 sq mi
ZIP Area
603
Density / Sq Mi
$91,513
Median Household Income
$50,970
Median Earnings
$1,575
Median Rent
$282,600
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?
Office building - Office building on 6.56 acres with I-65 visibility.
Where is this office building located?
The property is located at 120 Cahaba Valley Pkwy Pelham, AL.
What is the asking price?
The asking price for this property is $5,181,306.
What are key features of this property?
This property features: 6.56‑acre property; Great visibility from I‑65; Located south of Birmingham
