Medical Office Building For
For Sale
Contact for pricing
122 7th Ave NE, Alabaster, AL 35007
Medical office building with immediate occupancy and long-term lease income.
Property Size10,060 SF
Lot Size0.69 Acres
Price / SF$168.99
Days on Market1206
Property Features for 122 7th Ave NE
General Information
Standard status
Active
Size
10,060 SF
Class
B
Total Parking Spaces
40
Lot size
0.69 Acres
Property subtype
Office
Zoning
B-3
Occupancy
25%
Lease Type
Modified Gross
Investment Type
Owner/User
Building Details
Year Renovated
2022
Buildings
1
Stories
2
Units
4
Tenancy
Multi
Listing Agency:
Mark Dinan Commercial & Investment Real Estate
(205) 980-3434
Listed By:
Mark Dinan · License #AL 000044694
Source:
Crexi
Added: May 15, 2023
Changed: Aug 25
Last Checked: Sep 1 at 2:11AM
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 Mark Dinan Commercial & Investment Real Estate
Investment Insights
Based on property information with market context.
This commercial property is ideal for a medical owner, user, or investor. The building offers 7,410 square feet available for immediate occupancy, with an additional 2,650 square feet currently leased until December 31, 2032, at $5,000 per month. The pro forma gross income is $223,020 per year. The property tax is $14,377 per year. Situated on a 30,000 square foot lot, the property features a new roof installed in 2022 and updated HVAC. There are 40 parking spaces available. The location is prominent, with a monument sign and proximity to the medical center entrance across the street. A traffic light facilitates easy access from Highway 31. The area offers an abundance of shopping and restaurants. The level parking area provides convenient front door parking. Over 345,000 residents are located within a 5-mile radius. This property represents a value-add, high-growth, low-risk opportunity.
Key Highlights
- Ideal for Medical Owner/User/Investor due to proximity to Medical Center Entrance across the street.
- Significant Income: $5,000 per month from existing lease until December 31, 2032.
- High Visibility: Prominent location with Monument Sign and easy access from Highway 31 via traffic light.**
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
$136,136
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
8.01%
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%
$2,722,720
$2.7M
Cap Rate 7%
$1,944,800
$1.9M
Cap Rate 9%
$1,512,622
$1.5M
Market Conditions
NOI Build-Up for 10,060 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
$253.5K $25.20/SF
− Vacancy
−$26.6K −$2.65/SF
EGI
$226.9K $22.55/SF
− OpEx
−$90.8K −$9.02/SF
NOI
$136.1K $13.53/SF
Area
Shelby County, AL
Vacancy
10.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$2,722,720
Cap Rate 7%
$1,944,800
Cap Rate 9%
$1,512,622
Alternative Uses
Best Use
Healthcare Medical
$1.94M
$1.70M – $2.27M
NOI $136,136 @ 7.0% cap · market cap 8.01%
Second Best
Office B
$1.51M
$1.32M – $1.77M
NOI $105,932 @ 7.0% cap · market cap 6.23%
Theoretical Best
Office A
$2.36M
$2.07M – $2.75M
NOI $165,290 @ 7.0% cap · market cap 9.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
854
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35007, AL
28,274
Population
10,634
Households
2.7
Avg Household Size
38
Median Age
38%
College-Educated
92%
High-School Grad
39.0 sq mi
ZIP Area
725
Density / Sq Mi
$86,994
Median Household Income
$47,572
Median Earnings
$1,348
Median Rent
$231,800
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?
Medical Office Space - Medical office building with immediate occupancy and long-term lease income.
Where is this medical office space located?
The property is located at 122 7th Ave NE Alabaster, AL.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: Ideal for Medical Owner/User/Investor due to proximity to Medical Center Entrance across the street.; Significant Income: $5,000 per month from existing lease until December 31, 2032.; High Visibility: Prominent location with Monument Sign and easy access from Highway 31 via traffic light.**
