Creative Office Space in
For Sale
$1,100,000
2226 1st Ave S, Birmingham, AL 35233
High-quality creative office space in Birmingham's rapidly evolving 1st Avenue.
Property Size4,200 SF
Price / SF$261.90
Days on Market210
Property Features for 2226 1st Ave S
General Information
Standard status
Active
Size
4,200 SF
Class
B
Property subtype
Office
Building Details
Building Size
4,200 SF
Year Built
2007
Listing Agency:
Ironvest Partners
(205) 908-3760
Listed By:
Robert Crook · License #000003190
(205) 908-3760
Source:
Ironvestpartners
Added: Jan 27
Changed: Aug 25
Last Checked: Aug 25 at 5:09AM
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 Ironvest Partners
Investment Insights
Based on property information with market context.
This premier office condo provides an opportunity to own creative office space in Birmingham’s 1st Avenue South corridor. The space features modern finishes and natural light, delivering an aesthetic suitable for professional firms or creative users. The flexible layout includes private offices, meeting areas, open workspaces, a kitchen, and direct access to outdoor areas. Located steps from the Rotary Trail and across from the Lapeer and Epice redevelopment, the property benefits from visibility, walkability, and proximity to commercial and lifestyle amenities. The property is positioned along 1st Avenue South with access to the Rotary Trail, Railroad Park, and UAB. It is located across the street from The Hardwick, a mixed-use redevelopment that includes the new Lapeer Steak and Seafood, Epice, and Ballard Designs. The high-quality office build-out features exposed brick, wood beams, tall ceilings, and modern finishes. The functional layout includes private offices, conference rooms, reception, open work areas, a kitchen, and multiple restrooms. Large windows provide natural light. Access to a deck and courtyard offers space for meetings and company events. Secure on-site parking includes three gated garage spaces and ten additional spaces in an adjacent lot. Pullman Flats was designed with architectural standards.
Key Highlights
- Prime location in Birmingham's rapidly evolving 1st Avenue South corridor, directly across from the new Lapeer and Epice redevelopment and the Rotary Trail, offering strong visibility and walkability.
- High‑quality, architecturally recognized office space with modern finishes, exposed brick, wood beams, and tall ceilings.
- Functional and flexible layout including private offices, conference rooms, open work areas, and a kitchen, suitable for various professional uses.
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
$50,444
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
4.59%
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%
$1,008,880
$1.0M
Cap Rate 7%
$720,629
$720.6K
Cap Rate 9%
$560,489
$560.5K
Market Conditions
NOI Build-Up for 4,200 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
$85.7K $20.40/SF
− Vacancy
−$18.4K −$4.39/SF
EGI
$67.3K $16.01/SF
− OpEx
−$16.8K −$4.00/SF
NOI
$50.4K $12.01/SF
Area
Birmingham, AL
Vacancy
21.50%
Lease Rate
$20.40 /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%
$1,008,880
Cap Rate 7%
$720,629
Cap Rate 9%
$560,489
Alternative Uses
Best Use
Office B
$720.6K
$630.6K – $840.7K
NOI $50,444 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$985.8K
$862.6K – $1.15M
NOI $69,008 @ 7.0% cap · market cap 6.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
636
Businesses Nearby
Explore this area
Business Placement
Demographics for 35233, AL
2,588
Population
2,710
Households
1
Avg Household Size
27
Median Age
90%
College-Educated
99%
High-School Grad
1.5 sq mi
ZIP Area
1,725
Density / Sq Mi
$52,207
Median Household Income
$48,750
Median Earnings
$1,526
Median Rent
$332,100
Median Home Value
Market
Vacancy Rate% for Office in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - High-quality creative office space in Birmingham's rapidly evolving 1st Avenue.
Where is this office units located?
The property is located at 2226 1st Ave S Birmingham, AL.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Prime location in Birmingham's rapidly evolving 1st Avenue South corridor, directly across from the new Lapeer and Epice redevelopment and the Rotary Trail, offering strong visibility and walkability.; High‑quality, architecturally recognized office space with modern finishes, exposed brick, wood beams, and tall ceilings.; Functional and flexible layout including private offices, conference rooms, open work areas, and a kitchen, suitable for various professional uses.
