Retail Storefront
For Sale
$979,000
456 N Section Street, Fairhope, AL 36532
For-sale storefront retail building located on N Section Street in Fairhope, Alabama.
Property Size6,168 SF
Days on Market27
Property Features for 456 N Section Street
General Information
Standard status
Active
Size
6,168 SF
Zoning
Business/Commercial
Amenities
Central Air
Central
Building Details
Building Size
6,168 SF
Year Built
1935
Buildings
1
Listing Agency:
Real Broker, LLC
(901) 870-7392
Listed By:
Tracie Carter · License #123420
(901) 870-7392
Source:
Evrealestate
Added: Jul 27
Changed: Aug 8
Last Checked: Jul 31 at 4:35AM
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 Real Broker, LLC
Investment Insights
Based on property information with market context.
This for-sale storefront retail building is located at 456 N Section Street in Fairhope, Alabama, within Baldwin County. The property is a commercial storefront use and is positioned for straightforward access from nearby main roads.
From Highway 98, head south and turn right on Section Street. The building is on the left, just before the Gayfer Road intersection. This placement supports easy wayfinding for drivers approaching from Highway 98.
The listing information provided identifies the asset as a retail storefront building; additional details on interior layout, tenant configuration, or specific improvements are not included in the information available here.
From Highway 98, head south and turn right on Section Street. The building is on the left, just before the Gayfer Road intersection. This placement supports easy wayfinding for drivers approaching from Highway 98.
The listing information provided identifies the asset as a retail storefront building; additional details on interior layout, tenant configuration, or specific improvements are not included in the information available here.
Key Highlights
- For‑sale storefront retail building on N Section Street in Fairhope, Alabama
- Central heating and central air conditioning
- Built in 1935
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
$66,370
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
6.78%
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%
$1,327,400
$1.3M
Cap Rate 7%
$948,143
$948.1K
Cap Rate 9%
$737,444
$737.4K
Market Conditions
NOI Build-Up for 6,168 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
$103.6K $16.80/SF
− Vacancy
−$8.8K −$1.43/SF
EGI
$94.8K $15.37/SF
− OpEx
−$28.4K −$4.61/SF
NOI
$66.4K $10.76/SF
Area
Baldwin County, AL
Vacancy
8.50%
Lease Rate
$16.80 /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%
$1,327,400
Cap Rate 7%
$948,143
Cap Rate 9%
$737,444
Alternative Uses
Best Use
Retail
$948.1K
$829.6K – $1.11M
NOI $66,370 @ 7.0% cap · market cap 6.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.48M
$1.30M – $1.73M
NOI $103,830 @ 7.0% cap · market cap 10.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
466
Businesses Nearby
13k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 67%
Shops & Services 33%
Cactus
Dining
8,509 visits/mo
0.4 miles
Chevron
Shops & Services
4,260 visits/mo
0.1 miles
Demographics for 36532, AL
36,918
Population
17,502
Households
2.1
Avg Household Size
48
Median Age
50%
College-Educated
94%
High-School Grad
73.2 sq mi
ZIP Area
504
Density / Sq Mi
$86,026
Median Household Income
$46,129
Median Earnings
$1,374
Median Rent
$395,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Southern Veranda — 105 N Bancroft St, Fairhope, AL 36532
Frequently Asked Questions
What type of property is this?
Storefront property - For-sale storefront retail building located on N Section Street in Fairhope, Alabama.
Where is this storefront property located?
The property is located at 456 N Section Street Fairhope, AL.
What is the asking price?
The asking price for this property is $979,000.
What are key features of this property?
This property features: For‑sale storefront retail building on N Section Street in Fairhope, Alabama; Central heating and central air conditioning; Built in 1935
