Renovated Flex Warehouse
For Sale
Contact for pricing
1218 2nd Ave N, Birmingham, AL 35203
Two renovated, separately metered buildings totaling 24,346 SF, each with heated and cooled office areas and dedicated parking.
Property Size24,346 SF
Price / SF$97.96
Days on Market150
Property Features for 1218 2nd Ave N
General Information
Standard status
Active
Size
24,346 SF
Total Parking Spaces
17
Property subtype
Industrial, Office, Retail
Zoning
MUH( Mixed Use High)
Building Details
Year Built
1935
Year Renovated
2021
Buildings
2
Stories
1
Listing Agency:
Engel Realty company, LLC
Listed By:
Daniel Anderson · License #AL 000029655
Source:
Crexi
Added: Apr 9
Changed: Sep 4
Last Checked: Sep 4 at 1:32PM
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 Engel Realty company, LLC
Investment Insights
Based on property information with market context.
The property includes two renovated buildings totaling 24,346 square feet on two parcels. Building A offers 12,492 SF with 10,852 SF of warehouse space and 1,640 SF of office space, and Building B totals 11,854 SF with 9,654 SF of warehouse/showroom space and 2,200 SF of office space. Both buildings have heated and cooled office areas and are separately metered. Building A is sprinkled.
The site is accessed through an electric gate entrance and includes 17 dedicated parking spaces, with additional street parking available. Operational features include one dock high door with an opportunity to convert another roll-up to dock high, as well as two drive-in doors sized at 10' x 12'. Office amenities include shower in the Building A restroom area, a large break room and large conference room, and washer/dryer hookup and a work area in the Building B main office area. Both buildings also include separate entrances, offices, and ADA restrooms.
The site is accessed through an electric gate entrance and includes 17 dedicated parking spaces, with additional street parking available. Operational features include one dock high door with an opportunity to convert another roll-up to dock high, as well as two drive-in doors sized at 10' x 12'. Office amenities include shower in the Building A restroom area, a large break room and large conference room, and washer/dryer hookup and a work area in the Building B main office area. Both buildings also include separate entrances, offices, and ADA restrooms.
Key Highlights
- Two‑building industrial property totaling 24,346 SF on 0.80 acres (2 parcels) in Birmingham’s Switch District
- Renovated in 2021 with both buildings separately metered and featuring heated/cooled office areas
- Building A: 12,492 SF with 10,852 SF warehouse and 1,640 SF office; sprinkled building
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
$135,886
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
5.70%
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%
$2,717,720
$2.7M
Cap Rate 7%
$1,941,229
$1.9M
Cap Rate 9%
$1,509,844
$1.5M
Market Conditions
NOI Build-Up for 24,346 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
$175.3K $7.20/SF
− Vacancy
−$15.4K −$0.63/SF
EGI
$159.9K $6.57/SF
− OpEx
−$24.0K −$0.98/SF
NOI
$135.9K $5.58/SF
Area
Birmingham, AL
Vacancy
8.80%
Lease Rate
$7.20 /SF/Yr
Expense Ratio
15.00%
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%
$2,717,720
Cap Rate 7%
$1,941,229
Cap Rate 9%
$1,509,844
Alternative Uses
Best Use
Office B
$4.18M
$3.66M – $4.87M
NOI $292,408 @ 7.0% cap · market cap 12.26%
Second Best
Flex RnD
$3.38M
$2.96M – $3.94M
NOI $236,614 @ 7.0% cap · market cap 9.92%
Theoretical Best
Office A
$5.71M
$5.00M – $6.67M
NOI $400,015 @ 7.0% cap · market cap 16.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
924
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35203, AL
3,595
Population
2,114
Households
1.7
Avg Household Size
37
Median Age
41%
College-Educated
83%
High-School Grad
2.1 sq mi
ZIP Area
1,712
Density / Sq Mi
$46,829
Median Household Income
$51,183
Median Earnings
$954
Median Rent
$288,600
Median Home Value
Market
Vacancy Rate% for Office in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Two renovated, separately metered buildings totaling 24,346 SF, each with heated and cooled office areas and dedicated parking.
Where is this flex space located?
The property is located at 1218 2nd Ave N Birmingham, AL.
What is the asking price?
The asking price for this property is $2,385,000.
What are key features of this property?
This property features: Two‑building industrial property totaling 24,346 SF on 0.80 acres (2 parcels) in Birmingham’s Switch District; Renovated in 2021 with both buildings separately metered and featuring heated/cooled office areas; Building A: 12,492 SF with 10,852 SF warehouse and 1,640 SF office; sprinkled building
