Historic Two-Level Office
For Sale
$650,000
16 S Perry Street, Montgomery, AL 36104
CommercialSale, Montgomery, AL
Property Size2,439 SF
Price / SF$266.50
Days on Market190
Property Features for 16 S Perry Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business, Commercial
Parking
2
Middle school
,
Directions
S Perry - directly across from Mama's Sack Lunches
Subdivision
MONT-N Montgomery City
Standard status
Active
APN
10-03-07-3-303-027.001
Size
2,439 SF
Taxes and HOA fees
Tax Description
COM SW INT PERRY ST & DEXTER AVE TH S 140 TO POB TH S 20 TH W 75 TH N 20 TH E 75 TO POB
Tax Annual Amount
1219
Legal Description
COM SW INT PERRY ST & DEXTER AVE TH S 140 TO POB TH S 20 TH W 75 TH N 20 TH E 75 TO POB
Building Details
Year built
1870
Floors in Building
2
Flooring type
Carpet, Tile
Building materials
BrickVeneer, Concrete
Listing Agency:
RE/MAX Properties LLC · RE/MAX International
(334) 361-9300
Listed By:
Paul S. Harper · License #0067249
(334) 358-3427
Added: Mar 5
Changed: Sep 2
Last Checked: Sep 11 at 6:06PM
MLS# 584401
Copyright © 2026 Montgomery Area Association of Realtors MLS. 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 2,439-square-foot office property occupies two levels within a building constructed in 1870. The lower level has been freshly painted and includes two bathrooms, while the upper level provides a waiting area, kitchenette, two additional bathrooms, and dedicated office space. Tile and carpet flooring are installed throughout, with brick veneer and concrete among the listed construction materials.
Located at 16 S Perry Street in downtown Montgomery, the property is positioned near restaurants, shops, cultural attractions, and entertainment venues. The address is also described as being near major transportation hubs and highways, placing the office in a central urban setting with access for customers and employees.
Located at 16 S Perry Street in downtown Montgomery, the property is positioned near restaurants, shops, cultural attractions, and entertainment venues. The address is also described as being near major transportation hubs and highways, placing the office in a central urban setting with access for customers and employees.
Key Highlights
- 2,439 square feet across two levels
- Constructed in 1870 with brick veneer and concrete materials
- Lower level recently painted and includes two bathrooms
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
$27,076
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
4.17%
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%
$541,520
$541.5K
Cap Rate 7%
$386,800
$386.8K
Cap Rate 9%
$300,844
$300.8K
Market Conditions
NOI Build-Up for 2,439 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
$41.0K $16.80/SF
− Vacancy
−$2.3K −$0.94/SF
EGI
$38.7K $15.86/SF
− OpEx
−$11.6K −$4.76/SF
NOI
$27.1K $11.10/SF
Area
Montgomery, AL
Vacancy
5.60%
Lease Rate
$16.80 /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%
$541,520
Cap Rate 7%
$386,800
Cap Rate 9%
$300,844
Alternative Uses
Best Use
Retail
$386.8K
$338.5K – $451.3K
NOI $27,076 @ 7.0% cap · market cap 4.17%
Second Best
Office B
$385.7K
$337.5K – $450.0K
NOI $27,000 @ 7.0% cap · market cap 4.15%
Theoretical Best
Office A
$505.8K
$442.5K – $590.1K
NOI $35,403 @ 7.0% cap · market cap 5.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,662
Businesses Nearby
Explore this area
Business Placement
Demographics for 36104, AL
9,021
Population
5,265
Households
1.7
Avg Household Size
31
Median Age
26%
College-Educated
76%
High-School Grad
10.5 sq mi
ZIP Area
859
Density / Sq Mi
$34,975
Median Household Income
$21,668
Median Earnings
$787
Median Rent
$121,200
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Flexible commercial layout includes a kitchenette, waiting area, office space, and four bathrooms.
Where is this office units located?
The property is located at 16 S Perry Street Montgomery, AL.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 2,439 square feet across two levels; Constructed in 1870 with brick veneer and concrete materials; Lower level recently painted and includes two bathrooms
