Building Details

Floors in Building 1

Building materials MetalSiding

Listing Agency: Intervest Realty Group e***@intervestreal.com Show Phone

Listed By: Angel B. Miller · License #0107786 Show Phone

Added: Sep 4, 2024 Changed: Sep 2 Last Checked: Sep 25 at 4:06AM

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MLS# 563216

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 flex-space property includes an approximately 8,000-square-foot commercial building with offices positioned at the front and a shop area behind them. The facility has two restrooms, a roll-up door, and metal siding. A house on the property is included in the sale.

The site provides 96 feet of road frontage along Hwy 14/Gilmer Avenue in Tallassee, Alabama. Its configuration brings office and shop areas together within one commercial property, with the additional house included as part of the offering.

Key Highlights

• Approximately 8,000 square feet of commercial space
• Front office area and rear shop configuration
• Roll‑up door and two restrooms

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

$86,811

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

9.14%

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%

$1,736,220 $1.7M

Cap Rate 7%

$1,240,157 $1.2M

Cap Rate 9%

$964,567 $964.6K

Market Conditions

NOI Build-Up for 8,000 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

$142.1K $17.76/SF

− Vacancy

−$8.5K −$1.07/SF

EGI

$133.6K $16.69/SF

− OpEx

−$46.7K −$5.84/SF

NOI

$86.8K $10.85/SF

Area

Elmore County, AL

Vacancy

6.00%

Lease Rate

$17.76 /SF/Yr

Expense Ratio

35.00%

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%

$1,736,220

Cap Rate 7%

$1,240,157

Cap Rate 9%

$964,567

Alternative Uses

Best Use

Warehouse

$1.61M

$1.41M – $1.88M (±1% cap)

NOI $112,556 @ 7.0% cap · market cap 11.85%

Second Best

Industrial

$1.32M

$1.16M – $1.54M (±1% cap)

NOI $92,693 @ 7.0% cap · market cap 9.76%

Theoretical Best

Office A

$1.66M

$1.45M – $1.94M (±1% cap)

NOI $116,122 @ 7.0% cap · market cap 12.22%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Bonner's Medical Supply Medical Clinic

Suggested Use

Top Pick Real Estate Agency Dental Office HVAC Service Hair Salon Big Box & Wholesale Store Furniture & Home Goods

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

214

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 36078, AL

13,604

Population

5,991

Households

2.3

Avg Household Size

42

Median Age

18%

College-Educated

91%

High-School Grad

177.4 sq mi

ZIP Area

77

Density / Sq Mi

$67,700

Median Household Income

$41,310

Median Earnings

$842

Median Rent

$175,200

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Commercial building combines front offices, a rear shop, two restrooms, and an included house.

Where is this flex space located?

The property is located at 207 Gilmer Avenue Tallassee, AL.

What is the asking price?

The asking price for this property is $950,000.

What are key features of this property?

This property features: Approximately 8,000 square feet of commercial space; Front office area and rear shop configuration; Roll‑up door and two restrooms