Industrial Property with Existing
For Sale
$225,000
7050 Mobile Hwy, Montgomery, AL 36105
Industrial site along Mobile Highway with an existing residence and a 1,620 SF shop, supported by nearby M-1/M-3 zoning.
Property Size1,392 SF
Lot Size1.54 Acres
Days on Market174
Property Features for 7050 Mobile Hwy
General Information
Standard status
Active
Size
1,392 SF
Lot size
1.54 Acres
Property subtype
Factory
Zoning
M-1
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
1,392 SF
Year Built
1948
Listing Agency:
hodges commercial real estate
(334) 280-2033
Listed By:
Paul Hodges · License #28068
(334) 280-2033
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 10
Last Checked: Aug 11 at 4:40AM
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 hodges commercial real estate
Investment Insights
Based on property information with market context.
7050 Mobile Hwy is a 1.54+/- acre industrial site in Montgomery’s west industrial corridor, offering an existing 1,400+/- SF residence and a 1,620+/- SF shop. The residence may be suitable for office conversion or on-site management, while the shop can support service, storage, or light manufacturing operations.
The property is positioned along Mobile Highway near Hyundai Boulevard, with proximity to the Hyundai Motor Manufacturing Alabama and an Amazon fulfillment center. Surrounding properties are primarily zoned M-1 and M-3, and approximately half of the site is zoned M-1, which supports immediate industrial functionality with alignment for future expansion.
Convenient access to Interstate 65 via nearby interchanges supports efficient north–south distribution throughout Alabama and the Southeast. The combination of existing improvements and industrial zoning makes the site a practical fit for owner-users, contractors, or investors seeking a flexible industrial location with strong corridor connectivity.
The property is positioned along Mobile Highway near Hyundai Boulevard, with proximity to the Hyundai Motor Manufacturing Alabama and an Amazon fulfillment center. Surrounding properties are primarily zoned M-1 and M-3, and approximately half of the site is zoned M-1, which supports immediate industrial functionality with alignment for future expansion.
Convenient access to Interstate 65 via nearby interchanges supports efficient north–south distribution throughout Alabama and the Southeast. The combination of existing improvements and industrial zoning makes the site a practical fit for owner-users, contractors, or investors seeking a flexible industrial location with strong corridor connectivity.
Key Highlights
- 1.54‑acre industrial site in Montgomery’s west industrial corridor, located along Mobile Highway
- Partial M‑1 zoning with surrounding M‑1 and M‑3 zoned industrial uses
- Includes an existing 1,400 +/- SF residence, suitable for office conversion or on‑site management
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
$16,129
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
7.17%
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%
$322,580
$322.6K
Cap Rate 7%
$230,414
$230.4K
Cap Rate 9%
$179,211
$179.2K
Market Conditions
NOI Build-Up for 1,392 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
$24.7K $17.76/SF
− Vacancy
−$1.7K −$1.21/SF
EGI
$23.0K $16.55/SF
− OpEx
−$6.9K −$4.97/SF
NOI
$16.1K $11.59/SF
Area
Montgomery, AL
Vacancy
6.80%
Lease Rate
$17.76 /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%
$322,580
Cap Rate 7%
$230,414
Cap Rate 9%
$179,211
Alternative Uses
Best Use
Industrial
$230.4K
$201.6K – $268.8K
NOI $16,129 @ 7.0% cap · market cap 7.17%
Second Best
Office B
$220.1K
$192.6K – $256.8K
NOI $15,409 @ 7.0% cap · market cap 6.85%
Theoretical Best
Office A
$288.6K
$252.6K – $336.8K
NOI $20,205 @ 7.0% cap · market cap 8.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
90
Businesses Nearby
Explore this area
Business Placement
Demographics for 36105, AL
9,961
Population
5,468
Households
1.8
Avg Household Size
44
Median Age
19%
College-Educated
77%
High-School Grad
68.8 sq mi
ZIP Area
145
Density / Sq Mi
$44,438
Median Household Income
$33,340
Median Earnings
$965
Median Rent
$79,600
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?
Manufacturing property - Industrial site along Mobile Highway with an existing residence and a 1,620 SF shop, supported by nearby M-1/M-3 zoning.
Where is this manufacturing property located?
The property is located at 7050 Mobile Hwy Montgomery, AL.
What is the asking price?
The asking price for this property is $225,000.
What are key features of this property?
This property features: 1.54‑acre industrial site in Montgomery’s west industrial corridor, located along Mobile Highway; Partial M‑1 zoning with surrounding M‑1 and M‑3 zoned industrial uses; Includes an existing 1,400 +/- SF residence, suitable for office conversion or on‑site management
