Light Industrial Warehouse
For Sale
Contact for pricing
1854 E Interstate 65 Service Road N, Mobile, AL 36617
Warehouse and industrial space with Interstate 65 exposure and I-1 light industrial zoning.
Property Size66,900 SF
Price / SF$67.26
Days on Market129
Property Features for 1854 E Interstate 65 Service Road N
General Information
Standard status
Active
Size
66,900 SF
Property subtype
Industrial
Zoning
I-1, Light Industrial City of Mobile
Investment Type
Value Add
Additional Details
Road Access
Yes
Building Details
Buildings
1
Units
2
Tenancy
Multi
Listing Agency:
Metcalfe & Company, Inc.
(251) 432-2600
Listed By:
Adam Metcalfe · License #AL 000024789
Source:
Crexi
Added: Apr 25
Changed: Aug 31
Last Checked: Aug 31 at 4:08AM
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 Metcalfe & Company, Inc.
Investment Insights
Based on property information with market context.
This warehouse property is designated I-1, Light Industrial by the City of Mobile, supporting its classification within the industrial and warehouse category. The property is positioned along Interstate 65 and has frontage exposure from the Interstate 65 Service Road N.
The site is located at 1854 E. Interstate 65 Service Road N. on the east side of the service road, between Moffett Road and Highway 45. Its interstate-oriented setting provides a clearly identified location for an industrial owner-user or warehouse operation.
The site is located at 1854 E. Interstate 65 Service Road N. on the east side of the service road, between Moffett Road and Highway 45. Its interstate-oriented setting provides a clearly identified location for an industrial owner-user or warehouse operation.
Key Highlights
- I‑1, Light Industrial zoning designated by the City of Mobile
- Located along Interstate 65 with exposure from the service road
- 1854 E. Interstate 65 Service Road N., Mobile, AL 36617
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
$381,587
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
8.48%
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%
$7,631,740
$7.6M
Cap Rate 7%
$5,451,243
$5.5M
Cap Rate 9%
$4,239,856
$4.2M
Market Conditions
NOI Build-Up for 66,900 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
$481.7K $7.20/SF
− Vacancy
−$32.8K −$0.49/SF
EGI
$448.9K $6.71/SF
− OpEx
−$67.3K −$1.01/SF
NOI
$381.6K $5.70/SF
Area
Mobile, AL
Vacancy
6.80%
Lease Rate
$7.20 /SF/Yr
Expense Ratio
15.00%
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%
$7,631,740
Cap Rate 7%
$5,451,243
Cap Rate 9%
$4,239,856
Alternative Uses
Best Use
Warehouse
$5.45M
$4.77M – $6.36M
NOI $381,587 @ 7.0% cap · market cap 8.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$17.00M
$14.88M – $19.84M
NOI $1,190,263 @ 7.0% cap · market cap 26.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
563
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36617, AL
11,408
Population
5,828
Households
2
Avg Household Size
45
Median Age
15%
College-Educated
87%
High-School Grad
4.5 sq mi
ZIP Area
2,535
Density / Sq Mi
$39,922
Median Household Income
$30,040
Median Earnings
$1,061
Median Rent
$75,800
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?
Warehouse - Warehouse and industrial space with Interstate 65 exposure and I-1 light industrial zoning.
Where is this warehouse located?
The property is located at 1854 E Interstate 65 Service Road N Mobile, AL.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: I‑1, Light Industrial zoning designated by the City of Mobile; Located along Interstate 65 with exposure from the service road; 1854 E. Interstate 65 Service Road N., Mobile, AL 36617
