Two-Story Office
For Sale
$850,000
3811 Palisades Drive, Tuscaloosa, AL 35405
Two-story office building with 16 offices, 8 bathrooms, and a fully equipped kitchen.
Property Size5,964 SF
Price / SF$142.52
Days on Market3477
Property Features for 3811 Palisades Drive
General Information
Standard status
Active
Size
5,964 SF
Property subtype
Office
Additional Details
Highway Access
Yes
Office Units
16
Taxes and HOA fees
Annual Taxes
$6,530
Amenities
Central Air, Electric
3
Tile, Carpet
Composition, Shingle
250.3x293.3x45.6x226.8
Landscaped.
Building Details
Year Built
1999
Stories
2
Listing Agency:
BILLY BOYD REALTY
(205) 556-2693
Listed By:
Julie Jackson
(205) 799-3985
Source:
Xome
Added: Feb 26, 2017
Changed: Sep 1
Last Checked: Sep 4 at 3:08AM
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 BILLY BOYD REALTY
Investment Insights
Based on property information with market context.
This two-story office building offers a large office layout with 16 offices, 8 bathrooms, and a fully equipped kitchen. The property also includes four storage rooms and features neutral décor, along with a water fountain. Recent updates include new hardwood floors, ceramic tile in the kitchen, and freshly painted walls.
The building is located off Hargrove Road and Skyland Blvd, with quick access to the interstate. The property includes plenty of parking spaces, supporting convenient on-site access for staff and visitors.
The configuration is described as divisible, which may allow for easier leasing by separating office space for multiple occupants.
The building is located off Hargrove Road and Skyland Blvd, with quick access to the interstate. The property includes plenty of parking spaces, supporting convenient on-site access for staff and visitors.
The configuration is described as divisible, which may allow for easier leasing by separating office space for multiple occupants.
Key Highlights
- Two‑story office building with 16 offices, 8 bathrooms, and a fully equipped kitchen
- Fully equipped kitchen plus 4 storage rooms
- Renovation includes new hardwood floors, ceramic flooring in kitchen, and freshly painted walls
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
$69,081
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
8.13%
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%
$1,381,620
$1.4M
Cap Rate 7%
$986,871
$986.9K
Cap Rate 9%
$767,567
$767.6K
Market Conditions
NOI Build-Up for 5,964 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
$118.1K $19.80/SF
− Vacancy
−$26.0K −$4.36/SF
EGI
$92.1K $15.44/SF
− OpEx
−$23.0K −$3.86/SF
NOI
$69.1K $11.58/SF
Area
Tuscaloosa, AL
Vacancy
22.00%
Lease Rate
$19.80 /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%
$1,381,620
Cap Rate 7%
$986,871
Cap Rate 9%
$767,567
Alternative Uses
Best Use
Office B
$986.9K
$863.5K – $1.15M
NOI $69,081 @ 7.0% cap · market cap 8.13%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $100,324 @ 7.0% cap · market cap 11.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16
Office units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
230
Businesses Nearby
Explore this area
Business Placement
Demographics for 35405, AL
45,155
Population
22,260
Households
2
Avg Household Size
34
Median Age
31%
College-Educated
94%
High-School Grad
52.9 sq mi
ZIP Area
854
Density / Sq Mi
$61,371
Median Household Income
$39,077
Median Earnings
$1,057
Median Rent
$224,900
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?
Office building - Two-story office building with 16 offices, 8 bathrooms, and a fully equipped kitchen.
Where is this office building located?
The property is located at 3811 Palisades Drive Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Two‑story office building with 16 offices, 8 bathrooms, and a fully equipped kitchen; Fully equipped kitchen plus 4 storage rooms; Renovation includes new hardwood floors, ceramic flooring in kitchen, and freshly painted walls
