Madison County Office
For Sale
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1878 Jeff Rd NW, Huntsville, AL 35806
17,424 SF office building in Madison County.
Property Size17,424 SF
Price / SF$200.87
Days on Market527
Property Features for 1878 Jeff Rd NW
General Information
Standard status
Active
Size
17,424 SF
Class
B
Property subtype
Office
Occupancy
92%
Lease Type
NNN
Building Details
Stories
2
Tenancy
Multi
Listing Agency:
Paladin Group, LLC.
Listed By:
Robert M. Webber, CCIM · License #AL
(256) 682-5831
Source:
Crexi
Added: Mar 27, 2025
Changed: Aug 26
Last Checked: Sep 2 at 12:36AM
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 Paladin Group, LLC.
Investment Insights
Based on property information with market context.
This is an approximately 17,424 square foot office building located in Madison County. The building features a covered drive-up entry. One suite, approximately 1,157 square feet, is currently vacant. The property is not located in a flood zone and is not subject to zoning regulations.
Key Highlights
- No Zoning Restrictions in Madison County
- Located in Madison County
- No Flood Zone
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
$222,600
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
6.36%
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%
$4,452,000
$4.5M
Cap Rate 7%
$3,180,000
$3.2M
Cap Rate 9%
$2,473,333
$2.5M
Market Conditions
NOI Build-Up for 17,424 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
$349.2K $20.04/SF
− Vacancy
−$52.4K −$3.01/SF
EGI
$296.8K $17.03/SF
− OpEx
−$74.2K −$4.26/SF
NOI
$222.6K $12.78/SF
Area
Huntsville, AL
Vacancy
15.00%
Lease Rate
$20.04 /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%
$4,452,000
Cap Rate 7%
$3,180,000
Cap Rate 9%
$2,473,333
Alternative Uses
Best Use
Office B
$3.18M
$2.78M – $3.71M
NOI $222,600 @ 7.0% cap · market cap 6.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.54M
$3.97M – $5.29M
NOI $317,605 @ 7.0% cap · market cap 9.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
90
Businesses Nearby
Explore this area
Business Placement
Demographics for 35806, AL
25,702
Population
14,398
Households
1.8
Avg Household Size
36
Median Age
60%
College-Educated
97%
High-School Grad
25.4 sq mi
ZIP Area
1,012
Density / Sq Mi
$79,338
Median Household Income
$50,458
Median Earnings
$1,287
Median Rent
$318,800
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 - 17,424 SF office building in Madison County.
Where is this office building located?
The property is located at 1878 Jeff Rd NW Huntsville, AL.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: No Zoning Restrictions in Madison County; Located in Madison County; No Flood Zone
