Traditional Office
For Sale
$1,200,000
2306 Wilson Dam Rd, Muscle Shoals, AL 35661
Commercial Sale, Muscle Shoals, AL
Property Size6,000 SF
Lot Size0.39 Acres
Price / SF$200
Days on Market1190
Property Features for 2306 Wilson Dam Rd
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CBD
Bathrooms
4
Full bathrooms
1
Half bathrooms
3
Rooms
Bathroom 1, Bathroom 4, Bathroom 2, Bathroom 3
Subdivision
Muscle Shoals Center #1
Elementary school
Muscle Shoals
Middle school
Muscle Shoals
High school
Muscle Shoals
Directions
From Florence cross Singing River Bridge to Wilson Dam Rd. Continue straight for approx. 4 miles. Building will be on the right before you get to Ricks Bar BQ.
Standard status
Active
APN
1301011019001000
Size
6,000 SF
Lot size
0.39 Acres
Taxes and HOA fees
Tax Description
Lots 123 & 124 & Pt. of lots 125 & 126 Muscle Shoals Center # 1 87.33 X 160 IRR/DB 2002.18
Tax Annual Amount
4288
Legal Description
Lots 123 & 124 & Pt. of lots 125 & 126 Muscle Shoals Center # 1 87.33 X 160 IRR/DB 2002.18
Utilities
Sewer type
Septic Tank
Building Details
Year built
1997
Listing Agency:
EXIT River City Realty · EXIT Realty
(256) 284-7781
Listed By:
Jackie C Wallace · License #0000736650
(256) 284-7781
Added: May 31, 2023
Changed: Aug 31
Last Checked: Sep 1 at 4:06AM
MLS# 511199
Copyright © 2026 Strategic MLS Alliance, INC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This traditional office building in Muscle Shoals contains approximately 6,000 square feet arranged across 27 rooms. Constructed in 1997, the property includes four listed bathrooms and is situated on a 0.39-acre lot. The building is classified within the CBD zoning designation.
The property is located at 2306 Wilson Dam Rd in Muscle Shoals, Alabama. On-site parking is estimated at 25 to 30 spaces, and the property uses a septic tank sewer system.
The property is located at 2306 Wilson Dam Rd in Muscle Shoals, Alabama. On-site parking is estimated at 25 to 30 spaces, and the property uses a septic tank sewer system.
Key Highlights
- Approximately 6,000 square feet of office space
- 27‑room configuration with four listed bathrooms
- Built in 1997 on a 0.39‑acre lot
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
$49,280
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
4.11%
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%
$985,600
$985.6K
Cap Rate 7%
$704,000
$704.0K
Cap Rate 9%
$547,556
$547.6K
Market Conditions
NOI Build-Up for 6,000 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
$84.2K $14.04/SF
− Vacancy
−$18.5K −$3.09/SF
EGI
$65.7K $10.95/SF
− OpEx
−$16.4K −$2.74/SF
NOI
$49.3K $8.21/SF
Area
Colbert County, AL
Vacancy
22.00%
Lease Rate
$14.04 /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%
$985,600
Cap Rate 7%
$704,000
Cap Rate 9%
$547,556
Alternative Uses
Best Use
Office B
$704.0K
$616.0K – $821.3K
NOI $49,280 @ 7.0% cap · market cap 4.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$958.1K
$838.4K – $1.12M
NOI $67,069 @ 7.0% cap · market cap 5.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
237
Businesses Nearby
Explore this area
Business Placement
Demographics for 35661, AL
18,714
Population
8,911
Households
2.1
Avg Household Size
42
Median Age
24%
College-Educated
91%
High-School Grad
51.2 sq mi
ZIP Area
366
Density / Sq Mi
$66,726
Median Household Income
$43,826
Median Earnings
$917
Median Rent
$189,700
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 building - CBD-zoned office property with multiple rooms, on-site parking, and a Wilson Dam Road address.
Where is this office building located?
The property is located at 2306 Wilson Dam Rd Muscle Shoals, AL.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Approximately 6,000 square feet of office space; 27‑room configuration with four listed bathrooms; Built in 1997 on a 0.39‑acre lot
