Medical Office
New
For Sale
$475,000
1304 Somerville Rd SE, Decatur, AL 35601
Commercial building with office or medical use potential under INST zoning.
Property Size2,655 SF
Price / SF$178.91
Days on Market2
Property Features for 1304 Somerville Rd SE
General Information
Standard status
Active
Size
2,655 SF
Class
C
Property subtype
Office
Zoning
INST
Building Details
Building Size
2,655 SF
Year Built
1976
Buildings
1
Listed By:
Will Swann · License #AL #000173842-0
(256) 606-2424
Source:
Gatewaycommercial
Added: Sep 2
Last Checked: Sep 2 at 2:12PM
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 Will Swann
Investment Insights
Based on property information with market context.
This 2,655-square-foot medical office property provides an established commercial building suitable for office or medical applications. Constructed in 1976, the property offers a defined structure for continued professional use or repositioning within the stated zoning framework.
Located at 1304 Somerville Rd SE in Decatur, Alabama, the building is zoned INST. The property’s classification and existing configuration support consideration by users seeking medical office space or other office-oriented commercial applications.
Located at 1304 Somerville Rd SE in Decatur, Alabama, the building is zoned INST. The property’s classification and existing configuration support consideration by users seeking medical office space or other office-oriented commercial applications.
Key Highlights
- 2,655 SF building
- Zoned INST
- Office or medical use potential
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
$29,940
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
6.30%
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%
$598,800
$598.8K
Cap Rate 7%
$427,714
$427.7K
Cap Rate 9%
$332,667
$332.7K
Market Conditions
NOI Build-Up for 2,655 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
$55.8K $21.00/SF
− Vacancy
−$5.9K −$2.21/SF
EGI
$49.9K $18.80/SF
− OpEx
−$20.0K −$7.52/SF
NOI
$29.9K $11.28/SF
Area
Morgan County, AL
Vacancy
10.50%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
40.00%
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%
$598,800
Cap Rate 7%
$427,714
Cap Rate 9%
$332,667
Alternative Uses
Best Use
Healthcare Medical
$427.7K
$374.3K – $499.0K
NOI $29,940 @ 7.0% cap · market cap 6.30%
Second Best
Office B
$386.1K
$337.8K – $450.4K
NOI $27,025 @ 7.0% cap · market cap 5.69%
Theoretical Best
Office A
$552.4K
$483.3K – $644.4K
NOI $38,665 @ 7.0% cap · market cap 8.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,044
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35601, AL
34,958
Population
15,168
Households
2.3
Avg Household Size
38
Median Age
18%
College-Educated
77%
High-School Grad
26.5 sq mi
ZIP Area
1,319
Density / Sq Mi
$50,216
Median Household Income
$33,438
Median Earnings
$860
Median Rent
$148,100
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?
Medical Office Space - Commercial building with office or medical use potential under INST zoning.
Where is this medical office space located?
The property is located at 1304 Somerville Rd SE Decatur, AL.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 2,655 SF building; Zoned INST; Office or medical use potential
