Two-Structure Downtown Office
For Sale
Contact for pricing
225 W LAUREL AVE, Foley, AL 36535
Two office buildings provide flexible space for expansion, storage, workshop use, or a separate business operation.
Property Size3,836 SF
Price / SF$169.19
Days on Market73
Property Features for 225 W LAUREL AVE
General Information
Standard status
Active
Size
3,836 SF
Property subtype
Office
Zoning
B-1
Building Details
Year Built
1947
Buildings
2
Stories
1
Listing Agency:
Waters Edge Realty
(706) 575-8800
Listed By:
Kendall Wahlert · License #AL 83690
Source:
Crexi
Added: Jun 12
Changed: Aug 14
Last Checked: Aug 22 at 1:09PM
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 Waters Edge Realty
Investment Insights
Based on property information with market context.
The property consists of two office structures on one site, including a front office building and a rear structure that was added in 2024. The front building is described as 1,900 square feet of office space, while the rear structure is described as 1,800 square feet and is positioned to support a variety of operational needs. The rear space can be used for expansion, storage, workshop use, or operated as a separate business facility, giving tenants and owners a practical way to separate functions or grow within the same property.
The buildings are located in the heart of downtown Foley, providing an established central setting for office users. With two distinct structures on-site, the layout supports multi-tenant or multi-use concepts while keeping both components under one ownership.
For buyers evaluating an owner-occupied or multi-operator setup, the combination of an existing front office and a newer rear structure offers flexibility for administrative functions alongside secondary space. The additional 2024 construction can be useful for back-of-house needs such as storage or light workshop-type use, or for establishing a separate operation without leaving the property. This offering presents a straightforward way to consolidate office and support uses in a downtown Foley location.
The buildings are located in the heart of downtown Foley, providing an established central setting for office users. With two distinct structures on-site, the layout supports multi-tenant or multi-use concepts while keeping both components under one ownership.
For buyers evaluating an owner-occupied or multi-operator setup, the combination of an existing front office and a newer rear structure offers flexibility for administrative functions alongside secondary space. The additional 2024 construction can be useful for back-of-house needs such as storage or light workshop-type use, or for establishing a separate operation without leaving the property. This offering presents a straightforward way to consolidate office and support uses in a downtown Foley location.
Key Highlights
- Two office buildings totaling 3,700 sq ft: 1,900 sq ft front office and 1,800 sq ft rear structure
- Rear structure was added in 2024 for additional space for expansion, storage, workshop use, or a separate business operation
- Year built: 1947
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
$44,743
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
6.89%
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%
$894,860
$894.9K
Cap Rate 7%
$639,186
$639.2K
Cap Rate 9%
$497,144
$497.1K
Market Conditions
NOI Build-Up for 3,836 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
$73.7K $19.20/SF
− Vacancy
−$14.0K −$3.65/SF
EGI
$59.7K $15.55/SF
− OpEx
−$14.9K −$3.89/SF
NOI
$44.7K $11.66/SF
Area
Baldwin County, AL
Vacancy
19.00%
Lease Rate
$19.20 /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%
$894,860
Cap Rate 7%
$639,186
Cap Rate 9%
$497,144
Alternative Uses
Best Use
Office B
$639.2K
$559.3K – $745.7K
NOI $44,743 @ 7.0% cap · market cap 6.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$922.5K
$807.2K – $1.08M
NOI $64,574 @ 7.0% cap · market cap 9.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
960
Businesses Nearby
Explore this area
Business Placement
Demographics for 36535, AL
35,484
Population
18,755
Households
1.9
Avg Household Size
46
Median Age
26%
College-Educated
90%
High-School Grad
92.5 sq mi
ZIP Area
384
Density / Sq Mi
$67,013
Median Household Income
$41,574
Median Earnings
$1,168
Median Rent
$250,800
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 - Two office buildings provide flexible space for expansion, storage, workshop use, or a separate business operation.
Where is this office building located?
The property is located at 225 W LAUREL AVE Foley, AL.
What is the asking price?
The asking price for this property is $649,000.
What are key features of this property?
This property features: Two office buildings totaling 3,700 sq ft: 1,900 sq ft front office and 1,800 sq ft rear structure; Rear structure was added in 2024 for additional space for expansion, storage, workshop use, or a separate business operation; Year built: 1947
