Automotive Repair Shop with
For Sale
$405,000
2301 Government Street, Mobile, AL 36606
Commercial Sale, Mobile, AL
Property Size1,400 SF
Lot Size0.38 Acres
Price / SF$289.29
Days on Market356
Property Features for 2301 Government Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B-2
Parking
1
Parking features
Parking Lot
Interior features
High Ceilings 10 or Greater, Reception Area, Restrooms
Fencing
Fenced
Lot features
Corner Lot, Level
Standard status
Active
APN
2909291002046
Size
1,400 SF
Lot size
0.38 Acres
Taxes and HOA fees
Tax Annual Amount
1923
Utilities
Utilities
Water Available
Amenities
office
bathroom
front lobby/waiting area
fenced back lot
Building Details
Year built
1973
Floors in Building
1
Flooring type
Concrete
Building materials
Block
Roof type
Metal
Listing Agency:
Keller Williams Mobile · Keller Williams Realty
(251) 662-5660
Listed By:
Devin Schaff · License #156219
(251) 404-1669
Added: Oct 14, 2025
Changed: Oct 1
Last Checked: Oct 4 at 4:06AM
MLS# 7667280
Copyright © 2026 Mobile Area Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,400-square-foot block automotive property has concrete floors, high ceilings, a reception area, restrooms, and an office. Service equipment includes bays and lifts. Customer parking is provided, and a fenced rear lot has access from the main road. The property is offered as-is.
The site includes the shop parcel and an adjoining, mostly cleared commercial lot at 2303 Government St. The shop building dates to 1973. The property has a history of gas station and automotive repair use; gas station operations ended in the 1990s, followed by use as a mechanic shop. Cleanup documentation is available. Zoning is B-2.
The site includes the shop parcel and an adjoining, mostly cleared commercial lot at 2303 Government St. The shop building dates to 1973. The property has a history of gas station and automotive repair use; gas station operations ended in the 1990s, followed by use as a mechanic shop. Cleanup documentation is available. Zoning is B-2.
Key Highlights
- 1,400‑square‑foot automotive shop with equipped service bays and lifts
- Adjoining mostly cleared commercial lot at 2303 Government St.
- Shop parcel is approximately 16,644 square feet; adjoining lot is approximately 13,169 square feet
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
$18,531
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
4.58%
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%
$370,620
$370.6K
Cap Rate 7%
$264,729
$264.7K
Cap Rate 9%
$205,900
$205.9K
Market Conditions
NOI Build-Up for 1,400 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
$27.7K $19.80/SF
− Vacancy
−$1.2K −$0.89/SF
EGI
$26.5K $18.91/SF
− OpEx
−$7.9K −$5.67/SF
NOI
$18.5K $13.24/SF
Area
Mobile, AL
Vacancy
4.50%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
30.00%
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%
$370,620
Cap Rate 7%
$264,729
Cap Rate 9%
$205,900
Alternative Uses
Best Use
Retail
$264.7K
$231.6K – $308.9K
NOI $18,531 @ 7.0% cap · market cap 4.58%
Second Best
Industrial
$93.9K
$82.2K – $109.6K
NOI $6,576 @ 7.0% cap · market cap 1.62%
Theoretical Best
Office A
$355.8K
$311.4K – $415.1K
NOI $24,908 @ 7.0% cap · market cap 6.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
908
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36606, AL
19,042
Population
9,129
Households
2.1
Avg Household Size
35
Median Age
29%
College-Educated
89%
High-School Grad
6.8 sq mi
ZIP Area
2,800
Density / Sq Mi
$49,561
Median Household Income
$37,094
Median Earnings
$938
Median Rent
$141,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
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- Tru Care Collision & Refinish — 2000 Halls Mill Rd, Mobile, AL 36606
- Vic's Custom Paint & Body LLC. — 2000 Halls Mill Rd, Mobile, AL 36606
- Cockrell's Body Shop Of D.I.P. — 2000 Halls Mill Rd, Mobile, AL 36606
Frequently Asked Questions
What type of property is this?
Auto shop - The block building includes equipped service bays, an office, a customer waiting area, and a fenced rear lot.
Where is this auto shop located?
The property is located at 2301 Government Street Mobile, AL.
What is the asking price?
The asking price for this property is $405,000.
What are key features of this property?
This property features: 1,400‑square‑foot automotive shop with equipped service bays and lifts; Adjoining mostly cleared commercial lot at 2303 Government St.; Shop parcel is approximately 16,644 square feet; adjoining lot is approximately 13,169 square feet
