Gulf Shores Parkway Commercial
For Sale
Contact for pricing
1903 US-31, Bay Minette, AL 36507
Updated 1,400 sq ft commercial building on corner lot.
Property Size1,392 SF
Price / SF$359.12
Days on Market151
Property Features for 1903 US-31
General Information
Standard status
Active
Size
1,392 SF
Property subtype
Retail, Office, Mixed Use, Self Storage
Zoning
B2
Building Details
Year Built
1968
Year Renovated
2020
Stories
1
Listing Agency:
Delta Realty
Listed By:
Matt Franklin · License #AL 100463
Source:
Crexi
Added: Mar 13
Changed: Aug 8
Last Checked: Aug 2 at 3:26AM
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 Delta Realty
Investment Insights
Based on property information with market context.
This commercial property offers a 1,400 sq. ft. building situated on a corner lot with 190 feet of highway frontage on Gulf Shores Parkway. Located at a signalized intersection, the property benefits from high traffic and visibility, positioned directly across from Coastal Alabama Community College and on the main route to the beach. Updated in 2022, the building is move-in ready and suitable for various ventures, including a small business, doctor’s office, convenience store, or professional services. The property is located in a desirable business corridor in Baldwin County.
Key Highlights
- Prime location on Gulf Shores Parkway with 190 feet of highway frontage.
- High‑traffic area** directly across from Coastal Alabama Community College and on the main route to the beach.
- Corner lot at a major signalized intersection for easy access.
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
$14,978
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
3.00%
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%
$299,560
$299.6K
Cap Rate 7%
$213,971
$214.0K
Cap Rate 9%
$166,422
$166.4K
Market Conditions
NOI Build-Up for 1,392 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
$23.4K $16.80/SF
− Vacancy
−$2.0K −$1.43/SF
EGI
$21.4K $15.37/SF
− OpEx
−$6.4K −$4.61/SF
NOI
$15.0K $10.76/SF
Area
Baldwin County, AL
Vacancy
8.50%
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%
$299,560
Cap Rate 7%
$213,971
Cap Rate 9%
$166,422
Alternative Uses
Best Use
Retail
$214.0K
$187.2K – $249.6K
NOI $14,978 @ 7.0% cap · market cap 3.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$334.7K
$292.9K – $390.5K
NOI $23,432 @ 7.0% cap · market cap 4.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
100
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36507, AL
19,608
Population
8,615
Households
2.3
Avg Household Size
41
Median Age
17%
College-Educated
84%
High-School Grad
343.1 sq mi
ZIP Area
57
Density / Sq Mi
$47,919
Median Household Income
$34,985
Median Earnings
$872
Median Rent
$160,800
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Updated 1,400 sq ft commercial building on corner lot.
Where is this storefront property located?
The property is located at 1903 US-31 Bay Minette, AL.
What is the asking price?
The asking price for this property is $499,900.
What are key features of this property?
This property features: Prime location on Gulf Shores Parkway with **190 feet of highway frontage.**; High‑traffic area** directly across from Coastal Alabama Community College and on the main route to the beach.; Corner lot at a major signalized intersection for easy access.
