Updated Office-Warehouse Flex
For Sale
$259,000
2882 Mill St, Mobile, AL 36607
Combined office and warehouse improvements support varied commercial operations in Mobile.
Property Size2,595 SF
Days on Market36
Property Features for 2882 Mill St
General Information
Standard status
Active
Size
2,595 SF
Property subtype
Industrial - Flex - Industrial
Additional Details
Road Access
Yes
Building Details
Building Size
2,595 SF
Year Built
1970
Units
1
Listing Agency:
White-Spunner Realty
Listed By:
Chris Harle · License #105180
(251) 234-7232
Source:
Commercialcafe
Added: Aug 9
Changed: Sep 9
Last Checked: Sep 13 at 5:04AM
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 White-Spunner Realty
Investment Insights
Based on property information with market context.
This flex space at 2882 Mill St combines refreshed office improvements with an open warehouse area. The office portion includes multiple private offices, a break room, and a restroom, while the warehouse provides clear open workspace for commercial use. Roll-up doors at both the front and rear support access through the building. A roof replacement completed in 2026 adds a recent building improvement. The property is located in Mobile, Alabama, within ZIP code 36607.
Key Highlights
- Flex space with office and warehouse components
- Updated office area with several offices, break room, and restroom
- Open warehouse with front and rear roll‑up doors
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
$14,801
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
5.71%
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%
$296,020
$296.0K
Cap Rate 7%
$211,443
$211.4K
Cap Rate 9%
$164,456
$164.5K
Market Conditions
NOI Build-Up for 2,595 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
$18.7K $7.20/SF
− Vacancy
−$1.3K −$0.49/SF
EGI
$17.4K $6.71/SF
− OpEx
−$2.6K −$1.01/SF
NOI
$14.8K $5.70/SF
Area
Mobile, AL
Vacancy
6.80%
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%
$296,020
Cap Rate 7%
$211,443
Cap Rate 9%
$164,456
Alternative Uses
Best Use
Office B
$515.4K
$451.0K – $601.3K
NOI $36,078 @ 7.0% cap · market cap 13.93%
Second Best
Warehouse
$211.4K
$185.0K – $246.7K
NOI $14,801 @ 7.0% cap · market cap 5.71%
Theoretical Best
Office A
$659.6K
$577.1K – $769.5K
NOI $46,169 @ 7.0% cap · market cap 17.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
539
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36607, AL
6,264
Population
3,175
Households
2
Avg Household Size
44
Median Age
31%
College-Educated
87%
High-School Grad
3.0 sq mi
ZIP Area
2,088
Density / Sq Mi
$40,681
Median Household Income
$40,648
Median Earnings
$999
Median Rent
$125,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South region
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Similar Off Market Nearby
- FitKits — 3309 old shell rd, mobile, al 36608
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Frequently Asked Questions
What type of property is this?
Flex space - Combined office and warehouse improvements support varied commercial operations in Mobile.
Where is this flex space located?
The property is located at 2882 Mill St Mobile, AL.
What is the asking price?
The asking price for this property is $259,000.
What are key features of this property?
This property features: Flex space with office and warehouse components; Updated office area with several offices, break room, and restroom; Open warehouse with front and rear roll‑up doors
