Neighborhood Business Building with
For Sale
Contact for pricing
521 S Main St, Arab, AL 35016
Zoned neighborhood business building with finished upper units and a lower level set up for pet grooming and boarding.
Property Size5,090 SF
Price / SF$73.67
Days on Market740
Property Features for 521 S Main St
General Information
Standard status
Active
Size
5,090 SF
Property subtype
Retail, Business for Sale
Zoning
Business
Building Details
Year Built
1998
Buildings
1
Listing Agency:
Re/Max Heritage
Listed By:
Brenda King · License #97861
(256) 586-4410
Source:
Crexi
Added: Aug 27, 2024
Changed: Aug 24
Last Checked: Sep 1 at 8:38AM
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 Re/Max Heritage
Investment Insights
Based on property information with market context.
This neighborhood business property includes a finished upper level with four separate addresses, each featuring a restroom, kitchen, and rooms with closets. The lower level was built out for pet grooming and boarding, with kennels, a wash station, and a reception area.
Outside, there is a yard area north of the building with a privacy fence, along with an additional fenced area to the east of the building.
The property is offered for sale as-is.
Outside, there is a yard area north of the building with a privacy fence, along with an additional fenced area to the east of the building.
The property is offered for sale as-is.
Key Highlights
- Neighborhood business zoning with finished upper level set up across 4 different addresses
- Upper level includes restroom, kitchen, and rooms with closets for each address
- Lower level was set up for a pet grooming and boarding business with kennels and a wash station
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
$32,471
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
8.66%
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%
$649,420
$649.4K
Cap Rate 7%
$463,871
$463.9K
Cap Rate 9%
$360,789
$360.8K
Market Conditions
NOI Build-Up for 5,090 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
$50.7K $9.96/SF
− Vacancy
−$4.3K −$0.85/SF
EGI
$46.4K $9.11/SF
− OpEx
−$13.9K −$2.73/SF
NOI
$32.5K $6.38/SF
Area
Marshall County, AL
Vacancy
8.50%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
30.00%
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%
$649,420
Cap Rate 7%
$463,871
Cap Rate 9%
$360,789
Alternative Uses
Best Use
Retail
$463.9K
$405.9K – $541.2K
NOI $32,471 @ 7.0% cap · market cap 8.66%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.10M
$961.3K – $1.28M
NOI $76,902 @ 7.0% cap · market cap 20.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
163
Businesses Nearby
4k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Citgo
Shops & Services
3,509 visits/mo
0.3 miles
Demographics for 35016, AL
17,495
Population
7,372
Households
2.4
Avg Household Size
42
Median Age
22%
College-Educated
89%
High-School Grad
79.0 sq mi
ZIP Area
221
Density / Sq Mi
$60,910
Median Household Income
$36,939
Median Earnings
$758
Median Rent
$192,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Zoned neighborhood business building with finished upper units and a lower level set up for pet grooming and boarding.
Where is this retail space located?
The property is located at 521 S Main St Arab, AL.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: Neighborhood business zoning with finished upper level set up across 4 different addresses; Upper level includes restroom, kitchen, and rooms with closets for each address; Lower level was set up for a pet grooming and boarding business with kennels and a wash station
