Freestanding Office Building with
For Sale
$700,000
586 Shades Crest Road, Birmingham, AL 35226
Three-story office building offers two separately entered suites with additional storage on the lower level.
Property Size3,842 SF
Lot Size1.24 Acres
Price / SF$182.20
Days on Market202
Property Features for 586 Shades Crest Road
General Information
Standard status
Active
Size
3,842 SF
Class
A
Lot size
1.24 Acres
Property subtype
Multi Tenant Office
Additional Details
Office Units
2
Building Details
Building Size
3,842 SF
Year Built
1974
Stories
3
Tenancy
Multi
Properties For Sale
at 586 Shades Crest Road Contact us- Size
- 1,344 SF
- Lease Type
- Full Service
Middle Floor
- Size
- 1,344 SF
- Lease Type
- Full Service
Top Floor
Listing Agency:
Red Rock Realty Group
Listed By:
Trish Rushing, CCIM · License ##104714
(813) 309-2875
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 25
Last Checked: Aug 14 at 8:04AM
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 Red Rock Realty Group
Investment Insights
Based on property information with market context.
Freestanding office building with three floors and multiple secure-use areas. The top two floors are fully built out, each with a separate entry and approximately equal size suites. The lower level includes approximately 1,154 square feet of storage space, which may support a variety of uses.
The property sits on 1.24 acres along Shades Crest Road and includes the historical Lover’s Leap Lookout. It is positioned just off the corner of Shades Crest Road and Park Avenue, next door to the former Tip Top Grill.
As configured, the building supports separate tenancy across the upper floors while maintaining an additional dedicated storage level below.
The property sits on 1.24 acres along Shades Crest Road and includes the historical Lover’s Leap Lookout. It is positioned just off the corner of Shades Crest Road and Park Avenue, next door to the former Tip Top Grill.
As configured, the building supports separate tenancy across the upper floors while maintaining an additional dedicated storage level below.
Key Highlights
- Freestanding three‑story office building built in 1974 on 1.24 acres along Shades Crest Rd.
- Two fully built‑out suites on the top two floors, each approx. 1,344 SF, with separate entries for two tenants.
- Bottom floor offers approx. 1,154 SF of storage space with potential for additional uses.
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
$46,144
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
6.59%
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%
$922,880
$922.9K
Cap Rate 7%
$659,200
$659.2K
Cap Rate 9%
$512,711
$512.7K
Market Conditions
NOI Build-Up for 3,842 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
$78.4K $20.40/SF
− Vacancy
−$16.9K −$4.39/SF
EGI
$61.5K $16.01/SF
− OpEx
−$15.4K −$4.00/SF
NOI
$46.1K $12.01/SF
Area
Birmingham, AL
Vacancy
21.50%
Lease Rate
$20.40 /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%
$922,880
Cap Rate 7%
$659,200
Cap Rate 9%
$512,711
Alternative Uses
Best Use
Office B
$659.2K
$576.8K – $769.1K
NOI $46,144 @ 7.0% cap · market cap 6.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$901.8K
$789.1K – $1.05M
NOI $63,126 @ 7.0% cap · market cap 9.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
84
Businesses Nearby
Explore this area
Business Placement
Demographics for 35226, AL
38,471
Population
14,904
Households
2.6
Avg Household Size
39
Median Age
69%
College-Educated
97%
High-School Grad
17.7 sq mi
ZIP Area
2,174
Density / Sq Mi
$126,053
Median Household Income
$65,454
Median Earnings
$1,467
Median Rent
$387,100
Median Home Value
Market
Vacancy Rate% for Office in Birmingham, AL
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 - Three-story office building offers two separately entered suites with additional storage on the lower level.
Where is this office building located?
The property is located at 586 Shades Crest Road Birmingham, AL.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: Freestanding three‑story office building built in 1974 on 1.24 acres along Shades Crest Rd.; Two fully built‑out suites on the top two floors, each approx. 1,344 SF, with separate entries for two tenants.; Bottom floor offers approx. 1,154 SF of storage space with potential for additional uses.
