Versatile Retail-Office
For Sale
$147,900
2306 W Meighan Boulevard, Gadsden, AL 35904
Open-plan storefront building with offices, breakroom, public and private bathrooms, plus front and rear parking.
Property Size1,303 SF
Price / SF$113.51
Days on Market129
Property Features for 2306 W Meighan Boulevard
General Information
Standard status
Active
Size
1,303 SF
Property subtype
Commercial
Additional Details
Business Included
No
Amenities
breakroom/kitchen
private office
bathrooms
storage area
Building Details
Building Size
1,303 SF
Year Built
1986
Listing Agency:
Era King Real Estate
(256) 442-1030
Listed By:
Tokrica Mack · License #73524
(256) 442-1030
Source:
Alabamaland
Added: Apr 6
Changed: Jul 28
Last Checked: Aug 12 at 12:54PM
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 Era King Real Estate
Investment Insights
Based on property information with market context.
This versatile commercial building is well-suited for retail, office, or service use, offering an open floor plan with updated flooring and fresh paint throughout. The interior is supported by ample overhead lighting and includes a breakroom/kitchen area with appliances, a private office space, public and private bathrooms, and a dedicated storage area.
The exterior features front parking, with additional space available in the rear, providing flexibility for day-to-day access and operations.
With its combination of open space and enclosed rooms, the layout supports a range of occupancies while maintaining functional back-of-house elements like storage and separated bathroom access.
The exterior features front parking, with additional space available in the rear, providing flexibility for day-to-day access and operations.
With its combination of open space and enclosed rooms, the layout supports a range of occupancies while maintaining functional back-of-house elements like storage and separated bathroom access.
Key Highlights
- Commercial building built in 1986 with flexible layout for retail, office, or service use
- Open floor plan with updated flooring, fresh paint, and ample overhead lighting throughout
- Breakroom/kitchen area with appliances plus dedicated storage area
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
$12,040
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
8.14%
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%
$240,800
$240.8K
Cap Rate 7%
$172,000
$172.0K
Cap Rate 9%
$133,778
$133.8K
Market Conditions
NOI Build-Up for 1,303 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
$19.5K $15.00/SF
− Vacancy
−$2.3K −$1.80/SF
EGI
$17.2K $13.20/SF
− OpEx
−$5.2K −$3.96/SF
NOI
$12.0K $9.24/SF
Area
Etowah County, AL
Vacancy
12.00%
Lease Rate
$15.00 /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%
$240,800
Cap Rate 7%
$172,000
Cap Rate 9%
$133,778
Alternative Uses
Best Use
Retail
$172.0K
$150.5K – $200.7K
NOI $12,040 @ 7.0% cap · market cap 8.14%
Second Best
Office B
$120.2K
$105.2K – $140.3K
NOI $8,415 @ 7.0% cap · market cap 5.69%
Theoretical Best
Specialty Retail
$213.0K
$186.4K – $248.6K
NOI $14,913 @ 7.0% cap · market cap 10.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
113
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35904, AL
13,559
Population
6,272
Households
2.2
Avg Household Size
41
Median Age
11%
College-Educated
80%
High-School Grad
48.8 sq mi
ZIP Area
278
Density / Sq Mi
$40,915
Median Household Income
$28,479
Median Earnings
$792
Median Rent
$100,100
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?
Storefront property - Open-plan storefront building with offices, breakroom, public and private bathrooms, plus front and rear parking.
Where is this storefront property located?
The property is located at 2306 W Meighan Boulevard Gadsden, AL.
What is the asking price?
The asking price for this property is $147,900.
What are key features of this property?
This property features: Commercial building built in 1986 with flexible layout for retail, office, or service use; Open floor plan with updated flooring, fresh paint, and ample overhead lighting throughout; Breakroom/kitchen area with appliances plus dedicated storage area
