Small-Bay Industrial NNN
For Sale
$1,575,000
2816 E Meighan Blvd, Gadsden, AL 35903
Three small-bay industrial buildings with predominantly NNN leases and six tenants, including a 10-year anchor.
Property Size16,900 SF
Price / SF$93.20
Days on Market56
Property Features for 2816 E Meighan Blvd
General Information
Standard status
Active
Size
16,900 SF
Property subtype
Office Warehouse
Additional Details
Cap Rate
8.3%
Highway Access
Yes
Amenities
Three-property industrial portfolio totaling approximately 16,900 SF
Predominantly NNN lease structures with limited landlord obligations
Weighted average remaining lease term of approximately five years
Recently constructed and renovated improvements minimizing near-term capital expenditures
Building Details
Building Size
16,900 SF
Year Built
2026
Listing Agency:
Birmingham Office
(205) 510-9127
Listed By:
Brian Higdon · License #License(s): AL: 000120340
(205) 510-9127
Source:
Marcusmillichap
Added: Jul 8
Changed: Aug 21
Last Checked: Aug 31 at 12:47PM
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 Birmingham Office
Investment Insights
Based on property information with market context.
Marcus & Millichap presents a three-property small-bay industrial portfolio in Gadsden, Alabama, totaling approximately 16,900 square feet. The portfolio is currently occupied by six tenants across construction, plumbing, trucking, and service-related uses. The mix includes a 4,000-square-foot facility occupied by P&M Outdoor Structures under a new 10-year NNN lease, a 4,000-square-foot building occupied by Ultimate Plumbing under a five-year NNN lease, a recently renovated 4,000-square-foot multi-tenant industrial building leased to three tenants, and a 1,300-square-foot warehouse leased to Platinum Trucking.
The properties are positioned within the Gadsden industrial market off I-59, located between Birmingham and Chattanooga. The portfolio features a weighted average remaining lease term of approximately five years, with leases structured predominantly on NNN terms.
Management and capital planning are supported by recent building improvements: the assets are described as either newly constructed or substantially renovated in recent years, helping reduce anticipated capital expenditures and deferred maintenance considerations.
The properties are positioned within the Gadsden industrial market off I-59, located between Birmingham and Chattanooga. The portfolio features a weighted average remaining lease term of approximately five years, with leases structured predominantly on NNN terms.
Management and capital planning are supported by recent building improvements: the assets are described as either newly constructed or substantially renovated in recent years, helping reduce anticipated capital expenditures and deferred maintenance considerations.
Key Highlights
- Three small‑bay industrial assets totaling approximately 16,900 SF in Gadsden, AL
- Six tenants across construction, plumbing, trucking, and service‑related industries for diversified income
- Anchor tenant P&M Outdoor Structures occupies a 4,000 SF facility under a new 10‑year NNN lease
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
$92,982
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
5.90%
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%
$1,859,640
$1.9M
Cap Rate 7%
$1,328,314
$1.3M
Cap Rate 9%
$1,033,133
$1.0M
Market Conditions
NOI Build-Up for 16,900 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
$117.6K $6.96/SF
− Vacancy
−$8.2K −$0.49/SF
EGI
$109.4K $6.47/SF
− OpEx
−$16.4K −$0.97/SF
NOI
$93.0K $5.50/SF
Area
Etowah County, AL
Vacancy
7.00%
Lease Rate
$6.96 /SF/Yr
Expense Ratio
15.00%
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%
$1,859,640
Cap Rate 7%
$1,328,314
Cap Rate 9%
$1,033,133
Alternative Uses
Best Use
Warehouse
$1.33M
$1.16M – $1.55M
NOI $92,982 @ 7.0% cap · market cap 5.90%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.76M
$2.42M – $3.22M
NOI $193,426 @ 7.0% cap · market cap 12.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
226
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35903, AL
17,344
Population
8,338
Households
2.1
Avg Household Size
41
Median Age
16%
College-Educated
87%
High-School Grad
68.2 sq mi
ZIP Area
254
Density / Sq Mi
$50,063
Median Household Income
$35,361
Median Earnings
$823
Median Rent
$170,000
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Westside Mini Storage — 3615 W Meighan Blvd, Gadsden, AL 35904
Frequently Asked Questions
What type of property is this?
Warehouse - Three small-bay industrial buildings with predominantly NNN leases and six tenants, including a 10-year anchor.
Where is this warehouse located?
The property is located at 2816 E Meighan Blvd Gadsden, AL.
What is the asking price?
The asking price for this property is $1,575,000.
What are key features of this property?
This property features: Three small‑bay industrial assets totaling approximately 16,900 SF in Gadsden, AL; Six tenants across construction, plumbing, trucking, and service‑related industries for diversified income; Anchor tenant P&M Outdoor Structures occupies a 4,000 SF facility under a new 10‑year NNN lease
