Connected Flex Space
For Sale
$1,650,000
138 Valley Park NW Drive, Decatur, AL 35601
Four linked buildings combine warehouse, manufacturing, office, showroom, garage, and conditioned space.
Property Size22,000 SF
Price / SF$75
Days on Market123
Property Features for 138 Valley Park NW Drive
General Information
Standard status
Active
Size
22,000 SF
Property subtype
Commercial/Industrial
Warehouse & Industrial
Warehouse Space
11,400 SF
Office Build-Out
3,560 SF
Taxes and HOA fees
Annual Taxes
$7,500
Building Details
Year Built
1971
Buildings
4
Listing Agency:
RE/MAX Platinum
(256) 227-4465
Listed By:
Terry Taylor · License #94608
(256) 227-4465
Source:
Exitrealty
Added: Apr 30
Changed: Aug 30
Last Checked: Aug 30 at 4:55PM
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 RE/MAX Platinum
Investment Insights
Based on property information with market context.
Built in 1971, the property consists of four connected buildings with a combined 22,000± square feet. The first three provide approximately 11,400± square feet of warehouse and manufacturing area, along with 16-foot sidewalls, 20-foot ceilings, an approximately 800-square-foot showroom, and approximately 560 square feet of office space.
The fourth building rises three stories, with a garage occupying the first floor, conditioned offices on the second, and conditioned unfinished space on the third. The property is located at 138 Valley Park NW Drive in Decatur, Alabama, within the city’s industrial complex.
The fourth building rises three stories, with a garage occupying the first floor, conditioned offices on the second, and conditioned unfinished space on the third. The property is located at 138 Valley Park NW Drive in Decatur, Alabama, within the city’s industrial complex.
Key Highlights
- Four connected buildings totaling 22,000± square feet
- First three buildings include 11,400± square feet of warehouse/manufacturing space
- 16‑foot sidewalls and 20‑foot ceilings
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
$132,173
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
8.01%
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%
$2,643,460
$2.6M
Cap Rate 7%
$1,888,186
$1.9M
Cap Rate 9%
$1,468,589
$1.5M
Market Conditions
NOI Build-Up for 22,000 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
$219.1K $9.96/SF
− Vacancy
−$15.8K −$0.72/SF
EGI
$203.3K $9.24/SF
− OpEx
−$71.2K −$3.24/SF
NOI
$132.2K $6.01/SF
Area
Morgan County, AL
Vacancy
7.20%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
35.00%
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%
$2,643,460
Cap Rate 7%
$1,888,186
Cap Rate 9%
$1,468,589
Alternative Uses
Best Use
Flex RnD
$1.89M
$1.65M – $2.20M
NOI $132,173 @ 7.0% cap · market cap 8.01%
Second Best
Warehouse
$1.85M
$1.62M – $2.16M
NOI $129,667 @ 7.0% cap · market cap 7.86%
Theoretical Best
Office A
$4.58M
$4.00M – $5.34M
NOI $320,390 @ 7.0% cap · market cap 19.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
125
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35601, AL
34,958
Population
15,168
Households
2.3
Avg Household Size
38
Median Age
18%
College-Educated
77%
High-School Grad
26.5 sq mi
ZIP Area
1,319
Density / Sq Mi
$50,216
Median Household Income
$33,438
Median Earnings
$860
Median Rent
$148,100
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Four linked buildings combine warehouse, manufacturing, office, showroom, garage, and conditioned space.
Where is this flex space located?
The property is located at 138 Valley Park NW Drive Decatur, AL.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Four connected buildings totaling 22,000± square feet; First three buildings include 11,400± square feet of warehouse/manufacturing space; 16‑foot sidewalls and 20‑foot ceilings
