GC-Zoned Medical Office
New
For Sale
$2,390,000
221 Rice Mine Rd NE, Tuscaloosa, AL 35406
Single-unit professional property near the University of Alabama and Tuscaloosa Galleria.
Property Size6,000 SF
Price / SF$398.33
Days on Market3
Property Features for 221 Rice Mine Rd NE
General Information
Standard status
Active
Size
6,000 SF
Class
A
Property subtype
Office - Medical Office
Zoning
GC
Additional Details
Office Units
1
Building Details
Building Size
6,000 SF
Year Built
1976
Buildings
1
Units
1
Listing Agency:
Harwood Real Estate
(205) 764-1637
Listed By:
Richard Harwood
Source:
Commercialcafe
Added: Aug 15
Changed: Aug 16
Last Checked: Aug 16 at 3:09AM
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 Harwood Real Estate
Investment Insights
Based on property information with market context.
This medical office property includes a 6,000-square-foot building configured as one unit. Completed in 1976, the building offers an established professional setting for office or medical operations. GC zoning supports the property’s stated office and medical positioning while providing a defined commercial framework.
The property is located at 221 Rice Mine Rd NE in Tuscaloosa, Alabama. The University of Alabama is nearby, along with Tuscaloosa Galleria’s dining and shopping amenities. The surrounding context combines access to a major university environment with established retail and service destinations.
The property is located at 221 Rice Mine Rd NE in Tuscaloosa, Alabama. The University of Alabama is nearby, along with Tuscaloosa Galleria’s dining and shopping amenities. The surrounding context combines access to a major university environment with established retail and service destinations.
Key Highlights
- 6,000 SF medical office building
- One‑unit configuration
- Built in 1976
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
$80,352
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
3.36%
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%
$1,607,040
$1.6M
Cap Rate 7%
$1,147,886
$1.1M
Cap Rate 9%
$892,800
$892.8K
Market Conditions
NOI Build-Up for 6,000 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
$144.0K $24.00/SF
− Vacancy
−$10.1K −$1.68/SF
EGI
$133.9K $22.32/SF
− OpEx
−$53.6K −$8.93/SF
NOI
$80.4K $13.39/SF
Area
Tuscaloosa, AL
Vacancy
7.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
40.00%
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%
$1,607,040
Cap Rate 7%
$1,147,886
Cap Rate 9%
$892,800
Alternative Uses
Best Use
Healthcare Medical
$1.15M
$1.00M – $1.34M
NOI $80,352 @ 7.0% cap · market cap 3.36%
Second Best
Office B
$992.8K
$868.7K – $1.16M
NOI $69,498 @ 7.0% cap · market cap 2.91%
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $100,930 @ 7.0% cap · market cap 4.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Location Intelligence
Trade Area within ½ mile
70
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35406, AL
16,664
Population
8,291
Households
2
Avg Household Size
40
Median Age
68%
College-Educated
97%
High-School Grad
80.9 sq mi
ZIP Area
206
Density / Sq Mi
$118,736
Median Household Income
$68,810
Median Earnings
$1,352
Median Rent
$467,000
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?
Medical Office Space - Single-unit professional property near the University of Alabama and Tuscaloosa Galleria.
Where is this medical office space located?
The property is located at 221 Rice Mine Rd NE Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $2,390,000.
What are key features of this property?
This property features: 6,000 SF medical office building; One‑unit configuration; Built in 1976
