Spacious Office Building in
For Sale
$775,000
409 2nd SW Ave, Cullman, AL 35055
Large office space with multiple rooms in central location.
Property Size5,712 SF
Lot Size0.12 Acres
Price / SF$135.68
Days on Market725
Property Features for 409 2nd SW Ave
General Information
Standard status
Active
Size
5,712 SF
Lot size
0.12 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$4,000
Building Details
Year Built
1971
Listing Agency:
RealtySouth - Cullman Office
(256) 709-9979
Listed By:
Cindy Dyer · License #066086
(256) 709-9979
Source:
Exitrealty
Added: Aug 17, 2024
Changed: Aug 11
Last Checked: Aug 11 at 8:30AM
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 RealtySouth - Cullman Office
Investment Insights
Based on property information with market context.
This commercial property offers 5,712 square feet of office space. The interior features a combination of hardwood, tile, and vinyl flooring. The layout includes 28 rooms, with 15 designated as offices. The building has entrances on both Highway 31 and the back side, providing convenient access. The property is situated in the center of town, offering a central location.
Key Highlights
- Large office space: 5848' available.
- 15 private offices.
- High‑traffic location: Entry on Highway 31.
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
$45,342
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
5.85%
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%
$906,840
$906.8K
Cap Rate 7%
$647,743
$647.7K
Cap Rate 9%
$503,800
$503.8K
Market Conditions
NOI Build-Up for 5,712 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
$72.0K $12.60/SF
− Vacancy
−$11.5K −$2.02/SF
EGI
$60.5K $10.58/SF
− OpEx
−$15.1K −$2.65/SF
NOI
$45.3K $7.94/SF
Area
Cullman County, AL
Vacancy
16.00%
Lease Rate
$12.60 /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%
$906,840
Cap Rate 7%
$647,743
Cap Rate 9%
$503,800
Alternative Uses
Best Use
Office B
$647.7K
$566.8K – $755.7K
NOI $45,342 @ 7.0% cap · market cap 5.85%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$842.1K
$736.9K – $982.5K
NOI $58,948 @ 7.0% cap · market cap 7.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
293
Businesses Nearby
Explore this area
Business Placement
Demographics for 35055, AL
22,299
Population
10,664
Households
2.1
Avg Household Size
39
Median Age
26%
College-Educated
88%
High-School Grad
63.8 sq mi
ZIP Area
350
Density / Sq Mi
$58,488
Median Household Income
$40,079
Median Earnings
$934
Median Rent
$195,400
Median Home Value
Market
Vacancy Rate% for Office 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?
Office units - Large office space with multiple rooms in central location.
Where is this office units located?
The property is located at 409 2nd SW Ave Cullman, AL.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: Large office space: 5848' available.; 15 private offices.; High‑traffic location: Entry on Highway 31.
