Medical Office Building with
For Sale
$459,900
154 S Main Street, Arab, AL 35016
Business Opportunity, Arab, AL
Property Size6,000 SF
Lot Size0.64 Acres
Price / SF$76.65
Days on Market46
Property Features for 154 S Main Street
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning description
Commercial
Bathrooms
8
Full bathrooms
8
Rooms
Bathroom 4, Basement, Bathroom 3, Bathroom 6, Bathroom 1, Bathroom 7, Bathroom 2, Bathroom 8, Bathroom 5
Exterior features
Sidewalks, Lighting
Accessibility
Accessible Doors
Lot features
High Visibility
Directions
In Arab On Main Street, Property Is On The Right (Going South) With Sign
Standard status
Active
APN
1307261001055.000
Size
6,000 SF
Lot size
0.64 Acres
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1984
Floors in Building
2
Flooring type
Tile, Concrete, Wood, Carpet
Listing Agency:
Re/Max Heritage · RE/MAX International
(256) 586-4410
Listed By:
Brenda King · License #97861
(256) 550-2101
Added: Aug 5
Changed: Sep 19
Last Checked: Sep 19 at 9:06PM
MLS# 21863749
Copyright © 2026 ValleyMLS.Com,Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 6,000-square-foot medical office building occupies 0.6382 acres and was constructed in 1984. The interior was previously used by two separate physicians and includes a basement, multiple bathrooms, carpet, tile, concrete, and wood flooring. A central divider beam reinforces the building’s two-part configuration, while two existing central units are described as new. The seller expects the building to be vacant by closing.
Central heating and air conditioning, accessible doors, public water, and public sewer are in place. Exterior features include lighting, sidewalks, a grassy area behind the building, and parking at the front. The property is positioned for continued medical office use or a reconfigured layout, subject to applicable approvals.
Central heating and air conditioning, accessible doors, public water, and public sewer are in place. Exterior features include lighting, sidewalks, a grassy area behind the building, and parking at the front. The property is positioned for continued medical office use or a reconfigured layout, subject to applicable approvals.
Key Highlights
- 6,000‑square‑foot medical office building on 0.6382 acres
- Previously occupied by two separate physicians
- Basement and central divider beam support a two‑part interior layout
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
$35,343
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
7.68%
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%
$706,860
$706.9K
Cap Rate 7%
$504,900
$504.9K
Cap Rate 9%
$392,700
$392.7K
Market Conditions
NOI Build-Up for 6,000 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
$54.0K $9.00/SF
− Vacancy
−$3.5K −$0.59/SF
EGI
$50.5K $8.42/SF
− OpEx
−$15.1K −$2.52/SF
NOI
$35.3K $5.89/SF
Area
Marshall County, AL
Vacancy
6.50%
Lease Rate
$9.00 /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%
$706,860
Cap Rate 7%
$504,900
Cap Rate 9%
$392,700
Alternative Uses
Best Use
Healthcare Medical
$994.2K
$869.9K – $1.16M
NOI $69,595 @ 7.0% cap · market cap 15.13%
Second Best
Office B
$966.2K
$845.4K – $1.13M
NOI $67,635 @ 7.0% cap · market cap 14.71%
Theoretical Best
Office A
$1.30M
$1.13M – $1.51M
NOI $90,651 @ 7.0% cap · market cap 19.71%
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
351
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 35016, AL
17,495
Population
7,372
Households
2.4
Avg Household Size
42
Median Age
22%
College-Educated
89%
High-School Grad
79.0 sq mi
ZIP Area
221
Density / Sq Mi
$60,910
Median Household Income
$36,939
Median Earnings
$758
Median Rent
$192,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-part layout with front parking, central HVAC, and accessible doors supports continued office use or reconfiguration.
Where is this medical office space located?
The property is located at 154 S Main Street Arab, AL.
What is the asking price?
The asking price for this property is $459,900.
What are key features of this property?
This property features: 6,000‑square‑foot medical office building on 0.6382 acres; Previously occupied by two separate physicians; Basement and central divider beam support a two‑part interior layout
