Highway Frontage Retail/Office
For Sale
$3,750,000
5235 Highway 280, Birmingham, AL 35242
Two-story building on Highway 280, ideal for retail or office.
Property Size12,000 SF
Lot Size0.96 Acres
Price / SF$312.50
Days on Market170
Property Features for 5235 Highway 280
General Information
Standard status
Active
Size
12,000 SF
Lot size
0.96 Acres
Property subtype
Office
Listing Agency:
(205) 871-7100
Listed By:
Sam Carroll, SIOR
Source:
Grahamcompany
Added: Mar 6
Changed: Jul 10
Last Checked: Aug 23 at 3:42AM
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 Sam Carroll, SIOR
Investment Insights
Based on property information with market context.
This two-story brick building, constructed in 2000, is situated as an outparcel to Brook Highland Plaza, a 549,466 square foot regional power center. It is also located across US Highway 280 from Meadow Brook Corporate Park. The property, suitable for retail or office use, features direct frontage on US Highway 280. The 12,000 square foot building is positioned on a 0.96-acre lot and is zoned C-2. The building includes large, open meeting areas, private offices, a conference room, a break room/kitchen, and a shower. It also has pole signage facing US Highway 280. Parking is provided by 51 spaces, including two handicap spaces. Brook Highland Plaza is anchored by retailers such as Lowes, Best Buy, Ulta, Home Goods, Michaels, and Petco. Meadow Brook Corporate Park across the highway is a Class A office park with 843,500 square feet of space. The property benefits from high traffic volume, with over 82,000 vehicles per day on US Highway 280.
Key Highlights
- Direct frontage on US Hwy. 280 with over 82,000 VPD
- Outparcel within Brook Highland Plaza, a 549,466 SF power center anchored by major retailers
- Zoned C‑2, allowing for retail or office use
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
$144,126
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
3.84%
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%
$2,882,520
$2.9M
Cap Rate 7%
$2,058,943
$2.1M
Cap Rate 9%
$1,601,400
$1.6M
Market Conditions
NOI Build-Up for 12,000 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
$244.8K $20.40/SF
− Vacancy
−$52.6K −$4.39/SF
EGI
$192.2K $16.01/SF
− OpEx
−$48.0K −$4.00/SF
NOI
$144.1K $12.01/SF
Area
Birmingham, AL
Vacancy
21.50%
Lease Rate
$20.40 /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%
$2,882,520
Cap Rate 7%
$2,058,943
Cap Rate 9%
$1,601,400
Alternative Uses
Best Use
Office B
$2.06M
$1.80M – $2.40M
NOI $144,126 @ 7.0% cap · market cap 3.84%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.82M
$2.46M – $3.29M
NOI $197,165 @ 7.0% cap · market cap 5.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,134
Businesses Nearby
Explore this area
Business Placement
Demographics for 35242, AL
57,008
Population
25,247
Households
2.3
Avg Household Size
42
Median Age
65%
College-Educated
97%
High-School Grad
52.4 sq mi
ZIP Area
1,088
Density / Sq Mi
$116,053
Median Household Income
$59,731
Median Earnings
$1,430
Median Rent
$452,300
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?
Office building - Two-story building on Highway 280, ideal for retail or office.
Where is this office building located?
The property is located at 5235 Highway 280 Birmingham, AL.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: Direct frontage on US Hwy. 280 with over 82,000 VPD; Outparcel within Brook Highland Plaza, a 549,466 SF power center anchored by major retailers; Zoned C‑2, allowing for retail or office use
