Retail Building with Upstairs
For Sale
$650,000
182 S Foster Street, Dothan, AL 36301
Commercial Sale, Dothan, AL
Property Size5,000 SF
Price / SF$130
Days on Market166
Property Features for 182 S Foster Street
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
3 SE-Inside Circle
Standard status
Active
APN
09-06-24-1-303-034.000
Building Details
Year built
1911
Floors in Building
2
Listing Agency:
Lan Darty Real Estate & Development
(334) 699-2300
Listed By:
Casey Tillery
(334) 714-7841
Added: Apr 7
Changed: Sep 3
Last Checked: Sep 19 at 1:06AM
MLS# 212546
Copyright © 2026 Southeast Alabama Association of REALTORS®. 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 5,000-square-foot retail building dates to 1911 and is currently operating as an arcade. The property includes a dedicated upstairs office along with additional unfinished office and loft space that can be customized. Its layout provides commercial area on the main level with supplemental workspace above.
The building is located at 182 S Foster Street in downtown Dothan, within walking distance of the Civic Center, Dothan Opera House, Houston County Courthouse, restaurants, nightlife, and shopping. The surrounding downtown setting also includes ongoing growth and revitalization activity.
The building is located at 182 S Foster Street in downtown Dothan, within walking distance of the Civic Center, Dothan Opera House, Houston County Courthouse, restaurants, nightlife, and shopping. The surrounding downtown setting also includes ongoing growth and revitalization activity.
Key Highlights
- 5,000‑square‑foot commercial building constructed in 1911
- Currently operating as an arcade
- Upstairs dedicated office plus unfinished office and loft space
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
$38,509
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
5.92%
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%
$770,180
$770.2K
Cap Rate 7%
$550,129
$550.1K
Cap Rate 9%
$427,878
$427.9K
Market Conditions
NOI Build-Up for 5,000 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
$63.0K $12.60/SF
− Vacancy
−$11.7K −$2.33/SF
EGI
$51.3K $10.27/SF
− OpEx
−$12.8K −$2.57/SF
NOI
$38.5K $7.70/SF
Area
Houston County, AL
Vacancy
18.50%
Lease Rate
$12.60 /SF/Yr
Expense Ratio
25.00%
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%
$770,180
Cap Rate 7%
$550,129
Cap Rate 9%
$427,878
Alternative Uses
Best Use
Office B
$550.1K
$481.4K – $641.8K
NOI $38,509 @ 7.0% cap · market cap 5.92%
Second Best
Retail
$497.9K
$435.7K – $580.9K
NOI $34,853 @ 7.0% cap · market cap 5.36%
Theoretical Best
Healthcare Medical
$883.7K
$773.3K – $1.03M
NOI $61,862 @ 7.0% cap · market cap 9.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,129
Businesses Nearby
Explore this area
Business Placement
Demographics for 36301, AL
38,447
Population
17,872
Households
2.2
Avg Household Size
40
Median Age
18%
College-Educated
85%
High-School Grad
89.2 sq mi
ZIP Area
431
Density / Sq Mi
$49,124
Median Household Income
$35,333
Median Earnings
$886
Median Rent
$156,100
Median Home Value
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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?
Retail space - Existing arcade operation occupies a downtown commercial building with office and unfinished loft space above.
Where is this retail space located?
The property is located at 182 S Foster Street Dothan, 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: 5,000‑square‑foot commercial building constructed in 1911; Currently operating as an arcade; Upstairs dedicated office plus unfinished office and loft space
