Corner Strip
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1218 Hillcrest Road, Mobile, AL 36695
Multi-unit retail property at Hillcrest Road and Grelot Road, surrounded by grocery, pharmacy, restaurant, and neighborhood shopping uses.
Property Size7,344 SF
Price / SF$204.25
Days on Market141
Property Features for 1218 Hillcrest Road
General Information
Standard status
Active
Size
7,344 SF
Class
B
Property subtype
Retail
Zoning
COM
Occupancy
50%
Lease Type
NNN
Investment Type
Value Add
Net Operating Income
$120,000
Building Details
Year Built
1998
Year Renovated
2025
Buildings
1
Stories
1
Tenancy
Multi
Listing Agency:
FMIG
Listed By:
Faith Morgan · License ##BK3551079
Source:
Crexi
Added: Apr 13
Changed: Aug 30
Last Checked: Aug 31 at 3:44AM
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 FMIG
Investment Insights
Based on property information with market context.
This multi-unit retail property occupies a corner location at 1218 Hillcrest Road in Mobile, Alabama. The center contains units in varying sizes, supporting a range of retail applications without relying on a single standardized layout. Previous occupants have included a jewelry store, barber shop, and dance studios, reflecting the property’s history of accommodating different small-business formats.
The site is situated at the intersection of Hillcrest Road and Grelot Road within an established shopping area. The surrounding commercial mix includes grocery stores, pharmacies, restaurants, strip malls, and other small shops. Buyers should verify unit dimensions and square footage, as the available information does not represent those measurements as confirmed.
The site is situated at the intersection of Hillcrest Road and Grelot Road within an established shopping area. The surrounding commercial mix includes grocery stores, pharmacies, restaurants, strip malls, and other small shops. Buyers should verify unit dimensions and square footage, as the available information does not represent those measurements as confirmed.
Key Highlights
- Corner location at Hillcrest Road and Grelot Road in Mobile, AL 36695
- Multi‑unit strip mall with a variety of unit sizes
- Located near grocery stores, pharmacies, restaurants, and other neighborhood shops
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
$97,207
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
6.48%
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%
$1,944,140
$1.9M
Cap Rate 7%
$1,388,671
$1.4M
Cap Rate 9%
$1,080,078
$1.1M
Market Conditions
NOI Build-Up for 7,344 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
$145.4K $19.80/SF
− Vacancy
−$6.5K −$0.89/SF
EGI
$138.9K $18.91/SF
− OpEx
−$41.7K −$5.67/SF
NOI
$97.2K $13.24/SF
Area
Mobile, AL
Vacancy
4.50%
Lease Rate
$19.80 /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%
$1,944,140
Cap Rate 7%
$1,388,671
Cap Rate 9%
$1,080,078
Alternative Uses
Best Use
Retail
$1.39M
$1.22M – $1.62M
NOI $97,207 @ 7.0% cap · market cap 6.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.87M
$1.63M – $2.18M
NOI $130,662 @ 7.0% cap · market cap 8.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
Explore this area
Business Placement
Demographics for 36695, AL
51,174
Population
21,269
Households
2.4
Avg Household Size
38
Median Age
34%
College-Educated
95%
High-School Grad
45.6 sq mi
ZIP Area
1,122
Density / Sq Mi
$75,236
Median Household Income
$47,614
Median Earnings
$1,192
Median Rent
$234,200
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?
Strip mall - Multi-unit retail property at Hillcrest Road and Grelot Road, surrounded by grocery, pharmacy, restaurant, and neighborhood shopping uses.
Where is this strip mall located?
The property is located at 1218 Hillcrest Road Mobile, AL.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Corner location at Hillcrest Road and Grelot Road in Mobile, AL 36695; Multi‑unit strip mall with a variety of unit sizes; Located near grocery stores, pharmacies, restaurants, and other neighborhood shops
