B-2 Retail
New
For Sale
Contact for pricing
2106 US Highway 98, Daphne, AL 36526
US Highway 98 frontage provides access and exposure within a strong commercial corridor.
Property Size4,500 SF
Lot Size0.53 Acres
Price / SF$262.22
Days on Market6
Property Features for 2106 US Highway 98
General Information
Standard status
Active
Size
4,500 SF
Lot size
0.53 Acres
Property subtype
RETAIL
Zoning
B-2
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Buildings
1
Building Size
4,500 SF
Abandoned
No
Listing Agency:
Stirling Properties | Mobile
(850) 467-1047
Listed By:
Steadman Bethea · License #SL3438675
(850) 467-1047
Source:
Moodyscre
Added: Aug 24
Changed: Aug 28
Last Checked: Aug 28 at 12:50PM
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 Stirling Properties | Mobile
Investment Insights
Based on property information with market context.
This retail property includes an approximately 4,500 SF commercial building on approximately 0.53 acres. The site is zoned B-2 and offers frontage along US Highway 98, with access and exposure suited to a range of commercial operations.
The property is positioned in Daphne, Alabama, within one of Baldwin County’s strongest commercial corridors. The building is identified as suitable for retail, office, automotive, showroom, and service-related uses, providing flexibility for businesses seeking a highway-oriented location.
The property is positioned in Daphne, Alabama, within one of Baldwin County’s strongest commercial corridors. The building is identified as suitable for retail, office, automotive, showroom, and service-related uses, providing flexibility for businesses seeking a highway-oriented location.
Key Highlights
- Approximately 4,500 SF commercial building
- Approximately 0.53 acres
- B‑2 zoning
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
$48,422
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
4.10%
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%
$968,440
$968.4K
Cap Rate 7%
$691,743
$691.7K
Cap Rate 9%
$538,022
$538.0K
Market Conditions
NOI Build-Up for 4,500 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
$75.6K $16.80/SF
− Vacancy
−$6.4K −$1.43/SF
EGI
$69.2K $15.37/SF
− OpEx
−$20.8K −$4.61/SF
NOI
$48.4K $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%
$968,440
Cap Rate 7%
$691,743
Cap Rate 9%
$538,022
Alternative Uses
Best Use
Retail
$691.7K
$605.3K – $807.0K
NOI $48,422 @ 7.0% cap · market cap 4.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.08M
$946.9K – $1.26M
NOI $75,751 @ 7.0% cap · market cap 6.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
554
Businesses Nearby
71k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 46%
Dining 34%
Office Supplies 9%
Electronics 9%
Shell
Shops & Services
9,614 visits/mo
0.4 miles
SONIC Drive In
Dining
7,369 visits/mo
0.4 miles
Chicken Salad Chick
Dining
6,387 visits/mo
0.4 miles
Staples
Office Supplies
6,281 visits/mo
0.4 miles
AT&T
Electronics
6,009 visits/mo
0.1 miles
Demographics for 36526, AL
35,720
Population
14,074
Households
2.5
Avg Household Size
40
Median Age
43%
College-Educated
94%
High-School Grad
37.7 sq mi
ZIP Area
947
Density / Sq Mi
$90,733
Median Household Income
$50,049
Median Earnings
$1,353
Median Rent
$311,000
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?
Retail space - US Highway 98 frontage provides access and exposure within a strong commercial corridor.
Where is this retail space located?
The property is located at 2106 US Highway 98 Daphne, AL.
What is the asking price?
The asking price for this property is $1,180,000.
What are key features of this property?
This property features: Approximately 4,500 SF commercial building; Approximately 0.53 acres; B‑2 zoning
