Updated Storefront Retail
For Sale
$155,000
8004 2nd Ave S, Birmingham, AL 35206
A customizable layout features upgraded infrastructure, HVAC, and energy-efficient lighting.
Property Size1,440 SF
Price / SF$107.64
Days on Market21
Property Features for 8004 2nd Ave S
General Information
Standard status
Active
Size
1,440 SF
Site & Location
Public Transit
Yes
Utilities to Site
Yes
Amenities
Large storefront windows
ample parking
high-speed internet
HVAC
energy-efficient lighting
Building Details
Year Built
1975
Listing Agency:
Pace Properties
(205) 222-1551
Listed By:
Raquel Smith, Robert Smith · License #5184
Source:
Soldbystratford
Added: Aug 9
Changed: Aug 28
Last Checked: Aug 29 at 12:03PM
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 Pace Properties
Investment Insights
Based on property information with market context.
This 1,440-square-foot storefront property at 8004 2nd Ave S in Birmingham, Alabama, offers a layout that can be adapted to different business needs. Large storefront windows provide natural light, while the existing improvements include HVAC, high-speed internet, and energy-efficient lighting. Customer and staff parking is available on site.
The property was built in 1975 and is positioned near shops, restaurants, and public transportation. Its storefront configuration and adaptable interior support a range of commercial uses, including retail, café, and office operations.
The property was built in 1975 and is positioned near shops, restaurants, and public transportation. Its storefront configuration and adaptable interior support a range of commercial uses, including retail, café, and office operations.
Key Highlights
- 1,440‑square‑foot storefront property at 8004 2nd Ave S, Birmingham, AL 35206
- Large storefront windows provide natural light
- Parking available for customers and staff
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
$14,074
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
9.08%
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%
$281,480
$281.5K
Cap Rate 7%
$201,057
$201.1K
Cap Rate 9%
$156,378
$156.4K
Market Conditions
NOI Build-Up for 1,440 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
$22.5K $15.60/SF
− Vacancy
−$2.4K −$1.64/SF
EGI
$20.1K $13.96/SF
− OpEx
−$6.0K −$4.19/SF
NOI
$14.1K $9.77/SF
Area
Birmingham, AL
Vacancy
10.50%
Lease Rate
$15.60 /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%
$281,480
Cap Rate 7%
$201,057
Cap Rate 9%
$156,378
Alternative Uses
Best Use
Retail
$201.1K
$175.9K – $234.6K
NOI $14,074 @ 7.0% cap · market cap 9.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$338.0K
$295.8K – $394.3K
NOI $23,660 @ 7.0% cap · market cap 15.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
391
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35206, AL
15,648
Population
7,967
Households
2
Avg Household Size
40
Median Age
19%
College-Educated
87%
High-School Grad
10.1 sq mi
ZIP Area
1,549
Density / Sq Mi
$39,051
Median Household Income
$28,665
Median Earnings
$990
Median Rent
$122,500
Median Home Value
Market
Vacancy Rate% for Retail in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - A customizable layout features upgraded infrastructure, HVAC, and energy-efficient lighting.
Where is this storefront property located?
The property is located at 8004 2nd Ave S Birmingham, AL.
What is the asking price?
The asking price for this property is $155,000.
What are key features of this property?
This property features: 1,440‑square‑foot storefront property at 8004 2nd Ave S, Birmingham, AL 35206; Large storefront windows provide natural light; Parking available for customers and staff
