Flex Warehouse with Office and
For Sale
Contact for pricing
2172 Pelham Parkway, Pelham, AL 35124
Multi-use flex building with office, retail, and warehouse space, plus ample parking and signal-controlled access.
Property Size7,785 SF
Lot Size0.62 Acres
Price / SF$114.96
Days on Market55
Property Features for 2172 Pelham Parkway
General Information
Standard status
Active
Size
7,785 SF
Total Parking Spaces
24
Lot size
0.62 Acres
Property subtype
Mixed Use
Investment Type
Owner/User
Site & Location
Traffic Count
32,000 vehicles/day
Highway Access
Yes
Building Details
Year Built
1960
Year Renovated
2000
Listing Agency:
Mark Dinan Commercial & Investment Real Estate
(205) 980-3434
Listed By:
Mark Dinan · License #AL 000044694
Source:
Crexi
Added: Jun 17
Changed: Aug 8
Last Checked: Aug 7 at 4:24AM
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 Mark Dinan Commercial & Investment Real Estate
Investment Insights
Based on property information with market context.
This 7,785+/- SF flex building sits on a 0.62+/- acre lot and combines office, retail, and warehouse areas in one property. Constructed in 1960 and renovated circa 2000, the building also features a new roof installed in 2024. Monument signage is included, supporting branding for retail or service-oriented operations, and on-site parking is available for 24 vehicles.
The property has frontage on Pelham Parkway and is located across the highway from a Walmart Super Center. Access is described as easy via a full traffic signal, providing convenient entry and exit for daily customers, deliveries, and staff. The remarks also cite high traffic counts of 32,000+ cars per day, with major activity generators nearby, which can be relevant for businesses that rely on pass-by visibility.
With a mix of front-facing and storage-oriented space, the building is positioned for an owner-user or investor looking for flexibility. The current configuration is described as ideal for retail, office with storage, and potential expansion, depending on an operator’s layout and use requirements. The seller indicates property taxes of $3,187 per year and that they may consider holding a mortgage.
The property has frontage on Pelham Parkway and is located across the highway from a Walmart Super Center. Access is described as easy via a full traffic signal, providing convenient entry and exit for daily customers, deliveries, and staff. The remarks also cite high traffic counts of 32,000+ cars per day, with major activity generators nearby, which can be relevant for businesses that rely on pass-by visibility.
With a mix of front-facing and storage-oriented space, the building is positioned for an owner-user or investor looking for flexibility. The current configuration is described as ideal for retail, office with storage, and potential expansion, depending on an operator’s layout and use requirements. The seller indicates property taxes of $3,187 per year and that they may consider holding a mortgage.
Key Highlights
- 7,785 +/- SF multi‑use building on a 0.62 +/- acre lot (constructed in 1960)
- Building includes office, retail, and warehouse space
- 24 parking spaces plus easy access via a full traffic signal and access to I‑65
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
$81,976
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
9.16%
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%
$1,639,520
$1.6M
Cap Rate 7%
$1,171,086
$1.2M
Cap Rate 9%
$910,844
$910.8K
Market Conditions
NOI Build-Up for 7,785 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
$140.1K $18.00/SF
− Vacancy
−$30.8K −$3.96/SF
EGI
$109.3K $14.04/SF
− OpEx
−$27.3K −$3.51/SF
NOI
$82.0K $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%
$1,639,520
Cap Rate 7%
$1,171,086
Cap Rate 9%
$910,844
Alternative Uses
Best Use
Office B
$1.17M
$1.02M – $1.37M
NOI $81,976 @ 7.0% cap · market cap 9.16%
Second Best
Warehouse
$563.1K
$492.7K – $656.9K
NOI $39,416 @ 7.0% cap · market cap 4.40%
Theoretical Best
Office A
$1.83M
$1.60M – $2.13M
NOI $127,911 @ 7.0% cap · market cap 14.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
32,000 VPD
Traffic count
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
942
Businesses Nearby
Balanced
Demand for This Use
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?
Flex space - Multi-use flex building with office, retail, and warehouse space, plus ample parking and signal-controlled access.
Where is this flex space located?
The property is located at 2172 Pelham Parkway Pelham, AL.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: 7,785 +/- SF multi‑use building on a 0.62 +/- acre lot (constructed in 1960); Building includes office, retail, and warehouse space; 24 parking spaces plus easy access via a full traffic signal and access to I‑65
