Single-Tenant Office
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2148 PELHAM PKWY, Pelham, AL 35124
Fully leased through Q4 2029 with private offices, conference space, and conditioned storage.
Property Size5,000 SF
Price / SF$175.50
Days on Market6
Property Features for 2148 PELHAM PKWY
General Information
Standard status
Active
Size
5,000 SF
Property subtype
Office, Industrial
Occupancy
100%
Financials
Cap Rate
8%
Gross Income
$70,200
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
1
Amenities
lobby
conference room
break room
conditioned storage
private offices
Building Details
Year Built
1998
Buildings
1
Building Size
5,000 SF
Tenancy
Single
Owner Occupied
No
Listing Agency:
Harris Tynes Commercial Real Estate
Listed By:
West Harris · License #AL
Source:
Crexi
Added: Sep 2
Changed: Sep 6
Last Checked: Sep 6 at 5:02AM
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 Harris Tynes Commercial Real Estate
Investment Insights
Based on property information with market context.
This approximately 5,000 SF office building was constructed in 1998 and is fully leased to Motion Medical, Inc. through Q4 2029. The interior includes a lobby, conference room, break room, conditioned storage, and private offices, with drive-up parking supporting daily operations. The building also has a TPO roof and is designated FEMA Zone X.
Located at 2148 Pelham Pkwy in Pelham, the property sits within the Indian Hills Condominium subdivision along Pelham Parkway. Its position between Valleydale Road and Highway 119, near Highway 31 and across from Walmart, provides access to established retail and business uses. The property carries an 8% cap rate.
Located at 2148 Pelham Pkwy in Pelham, the property sits within the Indian Hills Condominium subdivision along Pelham Parkway. Its position between Valleydale Road and Highway 119, near Highway 31 and across from Walmart, provides access to established retail and business uses. The property carries an 8% cap rate.
Key Highlights
- ±5,000 SF office building constructed in 1998
- 100% leased to Motion Medical, Inc. through Q4 2029
- 8% cap rate
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
$52,650
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
6.00%
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%
$1,053,000
$1.1M
Cap Rate 7%
$752,143
$752.1K
Cap Rate 9%
$585,000
$585.0K
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
$90.0K $18.00/SF
− Vacancy
−$19.8K −$3.96/SF
EGI
$70.2K $14.04/SF
− OpEx
−$17.6K −$3.51/SF
NOI
$52.7K $10.53/SF
Area
Shelby County, AL
Vacancy
22.00%
Lease Rate
$18.00 /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%
$1,053,000
Cap Rate 7%
$752,143
Cap Rate 9%
$585,000
Alternative Uses
Best Use
Office B
$752.1K
$658.1K – $877.5K
NOI $52,650 @ 7.0% cap · market cap 6.00%
Second Best
Flex RnD
$304.2K
$266.2K – $354.9K
NOI $21,294 @ 7.0% cap · market cap 2.43%
Theoretical Best
Office A
$1.17M
$1.03M – $1.37M
NOI $82,152 @ 7.0% cap · market cap 9.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,167
Businesses Nearby
Explore this area
Business Placement
Demographics for 35124, AL
25,667
Population
10,207
Households
2.5
Avg Household Size
40
Median Age
50%
College-Educated
95%
High-School Grad
42.6 sq mi
ZIP Area
603
Density / Sq Mi
$91,513
Median Household Income
$50,970
Median Earnings
$1,575
Median Rent
$282,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Fully leased through Q4 2029 with private offices, conference space, and conditioned storage.
Where is this office building located?
The property is located at 2148 PELHAM PKWY Pelham, AL.
What is the asking price?
The asking price for this property is $877,500.
What are key features of this property?
This property features: ±5,000 SF office building constructed in 1998; 100% leased to Motion Medical, Inc. through Q4 2029; 8% cap rate
