Commercial Property in Growing
For Sale
$475,000
1203 S Fifth Street, Mebane, NC 27302
Commercial property with high visibility near I-40/I-85 interchange.
Property Size1,494 SF
Price / SF$317.94
Days on Market104
Property Features for 1203 S Fifth Street
General Information
Standard status
Active
Size
1,494 SF
Taxes and HOA fees
Annual Taxes
$1,488
Listing Agency:
RE/MAX DIAMOND REALTY
(919) 563-4141
Listed By:
Donna Davis · License #79118
(919) 563-4141
Source:
Exprealty
Added: May 15
Changed: Aug 20
Last Checked: Aug 25 at 9:55AM
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 RE/MAX DIAMOND REALTY
Investment Insights
Based on property information with market context.
This commercial property is located on one of Mebane's fastest-growing corridors, minutes from downtown and right off the I-40/I-85 interchange and NC-119. It benefits from excellent visibility and strong traffic exposure, with convenient access to the Triad and Triangle areas. The property, with a size of 1494 square feet, is well-suited for office, service, and retail uses. It has been used as a barber shop and rented to the same tenant since 2010.
Key Highlights
- High visibility and strong traffic exposure on a rapidly growing corridor.
- Convenient access to I‑40/I‑85 interchange and NC‑119.
- Ideal location between the Triad and Triangle areas.
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
$29,401
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
6.19%
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%
$588,020
$588.0K
Cap Rate 7%
$420,014
$420.0K
Cap Rate 9%
$326,678
$326.7K
Market Conditions
NOI Build-Up for 1,494 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
$44.8K $30.00/SF
− Vacancy
−$2.8K −$1.89/SF
EGI
$42.0K $28.11/SF
− OpEx
−$12.6K −$8.43/SF
NOI
$29.4K $19.68/SF
Area
Alamance County, NC
Vacancy
6.29%
Lease Rate
$30.00 /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%
$588,020
Cap Rate 7%
$420,014
Cap Rate 9%
$326,678
Alternative Uses
Best Use
Retail
$420.0K
$367.5K – $490.0K
NOI $29,401 @ 7.0% cap · market cap 6.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$492.6K
$431.0K – $574.7K
NOI $34,480 @ 7.0% cap · market cap 7.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
225
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 27302, NC
33,237
Population
14,997
Households
2.2
Avg Household Size
40
Median Age
34%
College-Educated
90%
High-School Grad
114.7 sq mi
ZIP Area
290
Density / Sq Mi
$81,875
Median Household Income
$45,502
Median Earnings
$1,130
Median Rent
$275,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Storefront property - Commercial property with high visibility near I-40/I-85 interchange.
Where is this storefront property located?
The property is located at 1203 S Fifth Street Mebane, NC.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: High visibility and strong traffic exposure on a rapidly growing corridor.; Convenient access to I‑40/I‑85 interchange and NC‑119.; Ideal location between the Triad and Triangle areas.
