New Heavy Industrial
For Sale
$1,300,000
4360 1st Avenue South, Birmingham, AL 35222
Built in 2021, this clear-span warehouse includes grade-level loading, ground-floor restrooms, and a finished second-story office.
Property Size10,000 SF
Price / SF$130
Days on Market20
Property Features for 4360 1st Avenue South
General Information
Standard status
Active
Size
10,000 SF
Property subtype
Industrial
Zoning
M-2
Additional Details
Highway Access
Yes
Heavy Power
Yes
Building Details
Building Size
10,000 SF
Year Built
2021
Stories
2
Listing Agency:
Red Rock Realty Group
(205) 515-1505
Listed By:
Bud Ballard · License #000105215
(205) 515-1505
Source:
Redrockrg
Added: Jul 23
Changed: Aug 8
Last Checked: Aug 11 at 5:16AM
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.
This newer-construction industrial warehouse was built in 2021 and is designed for efficient day-to-day operations. The facility features clear-span construction, grade-level loading, and ground-floor restrooms. A 400 amp, three-phase electrical service supports general warehousing and light manufacturing, along with equipment-intensive operations or other heavy power draw users. The property also includes approximately 530 square feet of finished HVAC second-story office space.
The property is located east of Birmingham’s CBD and is described as minutes from I-20/59 and downtown Birmingham.
The available space is presented as a 10,000 square-foot warehouse with minimal office, supported by M-2 Heavy Industrial zoning.
The property is located east of Birmingham’s CBD and is described as minutes from I-20/59 and downtown Birmingham.
The available space is presented as a 10,000 square-foot warehouse with minimal office, supported by M-2 Heavy Industrial zoning.
Key Highlights
- Built in 2021, clear‑span warehouse totaling 10,000 SF
- M‑2 Heavy Industrial zoning
- Grade‑level loading
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
$55,814
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
4.29%
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%
$1,116,280
$1.1M
Cap Rate 7%
$797,343
$797.3K
Cap Rate 9%
$620,156
$620.2K
Market Conditions
NOI Build-Up for 10,000 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
$72.0K $7.20/SF
− Vacancy
−$6.3K −$0.63/SF
EGI
$65.7K $6.57/SF
− OpEx
−$9.8K −$0.98/SF
NOI
$55.8K $5.58/SF
Area
Birmingham, AL
Vacancy
8.80%
Lease Rate
$7.20 /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%
$1,116,280
Cap Rate 7%
$797,343
Cap Rate 9%
$620,156
Alternative Uses
Best Use
Office B
$1.72M
$1.50M – $2.00M
NOI $120,105 @ 7.0% cap · market cap 9.24%
Second Best
Warehouse
$797.3K
$697.7K – $930.2K
NOI $55,814 @ 7.0% cap · market cap 4.29%
Theoretical Best
Office A
$2.35M
$2.05M – $2.74M
NOI $164,304 @ 7.0% cap · market cap 12.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Heavy power
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
7,103
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35222, AL
8,419
Population
4,383
Households
1.9
Avg Household Size
37
Median Age
64%
College-Educated
97%
High-School Grad
3.9 sq mi
ZIP Area
2,159
Density / Sq Mi
$91,964
Median Household Income
$61,933
Median Earnings
$1,086
Median Rent
$374,600
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.
Similar Off Market Nearby
- Raughley Transfer — 2 41st St S, Birmingham, AL 35222
- Archer Daniels Midland Co — 3701 1st Ave N, Birmingham, AL 35222
Frequently Asked Questions
What type of property is this?
Warehouse - Built in 2021, this clear-span warehouse includes grade-level loading, ground-floor restrooms, and a finished second-story office.
Where is this warehouse located?
The property is located at 4360 1st Avenue South Birmingham, AL.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Built in 2021, clear‑span warehouse totaling 10,000 SF; M‑2 Heavy Industrial zoning; Grade‑level loading
