Downtown Commercial Space
For Sale
$1,200,000
1329 4th Ave S, Birmingham, AL 35208
Prime commercial space in a sought-after downtown location.
Property Size4,800 SF
Price / SF$250
Days on Market420
Property Features for 1329 4th Ave S
General Information
Standard status
Active
Size
4,800 SF
Listing Agency:
ARC Realty Vestavia
Listed By:
Matt Rudak · License #129941
(205) 542-7860
Source:
Exprealty
Added: Jul 18, 2025
Changed: Sep 9
Last Checked: Sep 9 at 9:07PM
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 ARC Realty Vestavia
Investment Insights
Based on property information with market context.
This commercial space offers up to 4,800 square feet in a downtown location. The property is located steps from Regions Field, local breweries, restaurants, and downtown nightlife. With 44 residential units directly above, the space benefits from built-in foot traffic. This versatile space is suitable for various uses, including a restaurant, retail space, creative office, or fitness studio.
Key Highlights
- Prime downtown location near Regions Field, breweries, restaurants, and nightlife
- Up to 4,800 SF of versatile commercial space
- Built‑in foot traffic from 44 residential units above
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
$46,912
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
3.91%
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%
$938,240
$938.2K
Cap Rate 7%
$670,171
$670.2K
Cap Rate 9%
$521,244
$521.2K
Market Conditions
NOI Build-Up for 4,800 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
$74.9K $15.60/SF
− Vacancy
−$7.9K −$1.64/SF
EGI
$67.0K $13.96/SF
− OpEx
−$20.1K −$4.19/SF
NOI
$46.9K $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%
$938,240
Cap Rate 7%
$670,171
Cap Rate 9%
$521,244
Alternative Uses
Best Use
Retail
$670.2K
$586.4K – $781.9K
NOI $46,912 @ 7.0% cap · market cap 3.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.13M
$985.8K – $1.31M
NOI $78,866 @ 7.0% cap · market cap 6.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
588
Businesses Nearby
Explore this area
Business Placement
Demographics for 35208, AL
12,982
Population
7,469
Households
1.7
Avg Household Size
43
Median Age
17%
College-Educated
87%
High-School Grad
3.7 sq mi
ZIP Area
3,509
Density / Sq Mi
$37,363
Median Household Income
$29,963
Median Earnings
$951
Median Rent
$91,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Prime commercial space in a sought-after downtown location.
Where is this retail space located?
The property is located at 1329 4th Ave S Birmingham, AL.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Prime downtown location near Regions Field, breweries, restaurants, and nightlife; Up to 4,800 SF of versatile commercial space; Built‑in foot traffic from 44 residential units above
