Versatile Flex Property Near
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1318 1st Ave N, Birmingham, AL 35203
Adaptable flex property near I-65, suitable for various business needs.
Property Size22,995 SF
Price / SF$53.27
Days on Market810
Property Features for 1318 1st Ave N
General Information
Standard status
Active
Size
22,995 SF
Property subtype
Industrial
Zoning
M1
Lease Type
NNN
Building Details
Year Built
1940
Year Renovated
2025
Tenancy
Multi
Listing Agency:
Ironvest Partners
(678) 577-2748
Listed By:
Bart Moore · License #AL 000143413-0
Source:
Crexi
Added: Jun 13, 2024
Changed: Aug 8
Last Checked: Aug 29 at 4:21PM
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 Ironvest Partners
Investment Insights
Based on property information with market context.
The flex property at 1318 1st Avenue North is located two blocks from I-65 and minutes from I-20/59, providing accessibility to Downtown Birmingham and the Parkside district. The surrounding area includes restaurants, lofts, small manufacturers, and service businesses. This property of 22995 square feet features recent upgrades, including a new restroom and roll-up door. The adaptable layout can accommodate single or multiple users, making it suitable for a variety of business needs.
Key Highlights
- Prime location: Two blocks from I‑65 and minutes from I‑20/59, providing easy access to Downtown Birmingham and Parkside district.
- Versatile flex property suitable for single or multiple users.
- Recent upgrades including a new restroom and roll‑up door.
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
$105,696
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
8.63%
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%
$2,113,920
$2.1M
Cap Rate 7%
$1,509,943
$1.5M
Cap Rate 9%
$1,174,400
$1.2M
Market Conditions
NOI Build-Up for 22,995 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
$165.6K $7.20/SF
− Vacancy
−$14.6K −$0.63/SF
EGI
$151.0K $6.57/SF
− OpEx
−$45.3K −$1.97/SF
NOI
$105.7K $4.60/SF
Area
Birmingham, AL
Vacancy
8.80%
Lease Rate
$7.20 /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%
$2,113,920
Cap Rate 7%
$1,509,943
Cap Rate 9%
$1,174,400
Alternative Uses
Best Use
Flex RnD
$3.19M
$2.79M – $3.72M
NOI $223,484 @ 7.0% cap · market cap 18.24%
Second Best
Industrial
$1.51M
$1.32M – $1.76M
NOI $105,696 @ 7.0% cap · market cap 8.63%
Theoretical Best
Office A
$5.40M
$4.72M – $6.30M
NOI $377,817 @ 7.0% cap · market cap 30.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
614
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35203, AL
3,595
Population
2,114
Households
1.7
Avg Household Size
37
Median Age
41%
College-Educated
83%
High-School Grad
2.1 sq mi
ZIP Area
1,712
Density / Sq Mi
$46,829
Median Household Income
$51,183
Median Earnings
$954
Median Rent
$288,600
Median Home Value
Market
Vacancy Rate% for Industrial in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Adaptable flex property near I-65, suitable for various business needs.
Where is this flex space located?
The property is located at 1318 1st Ave N Birmingham, AL.
What is the asking price?
The asking price for this property is $1,225,000.
What are key features of this property?
This property features: Prime location: Two blocks from I‑65 and minutes from I‑20/59, providing easy access to Downtown Birmingham and Parkside district.; Versatile flex property suitable for single or multiple users.; Recent upgrades including a new restroom and roll‑up door.
