Renovated Office
New
For Sale
$300,000
2550 Decatur Highway, Gardendale, AL 35071
Efficient professional office layout with private rooms, reception space, kitchenette, and on-site parking.
Property Size1,537 SF
Price / SF$195.19
Days on Market3
Property Features for 2550 Decatur Highway
General Information
Standard status
Active
Size
1,537 SF
Property subtype
Commercial/Industrial
Additional Details
Road Access
Yes
Amenities
private offices
reception/lobby area
restroom
kitchenette
Building Details
Year Built
1946
Year Renovated
2018
Buildings
1
Building Size
1,537 SF
Listing Agency:
Keller Williams Homewood
(205) 875-6959
Listed By:
Jason Koenig · License #79766
(205) 283-6391
Source:
Exitrealty
Added: Sep 4
Changed: Sep 5
Last Checked: Sep 5 at 2:52PM
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 Keller Williams Homewood
Investment Insights
Based on property information with market context.
Located at 2550 Decatur Highway in Gardendale, this 1,537-square-foot office building combines a practical professional layout with substantial 2018 improvements. The interior includes six private offices, a reception and lobby area, restroom, and kitchenette. The property most recently operated as an insurance office and offers a configuration suited to professional office and service-oriented operations.
Building upgrades completed in 2018 include a new roof, new HVAC system, and significant renovations. A newer parking pad provides 15+ on-site parking spaces. Built in 1946, the property sits directly on Decatur Highway with access throughout Gardendale and the surrounding North Jefferson County market.
Building upgrades completed in 2018 include a new roof, new HVAC system, and significant renovations. A newer parking pad provides 15+ on-site parking spaces. Built in 1946, the property sits directly on Decatur Highway with access throughout Gardendale and the surrounding North Jefferson County market.
Key Highlights
- 1,537 SF office building with six private offices
- Extensive renovations completed in 2018
- 2018 improvements include new roof and HVAC system
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
$27,086
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
9.03%
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%
$541,720
$541.7K
Cap Rate 7%
$386,943
$386.9K
Cap Rate 9%
$300,956
$301.0K
Market Conditions
NOI Build-Up for 1,537 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
$40.8K $26.52/SF
− Vacancy
−$4.6K −$3.02/SF
EGI
$36.1K $23.50/SF
− OpEx
−$9.0K −$5.87/SF
NOI
$27.1K $17.62/SF
Area
Jefferson County, AL
Vacancy
11.40%
Lease Rate
$26.52 /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%
$541,720
Cap Rate 7%
$386,943
Cap Rate 9%
$300,956
Alternative Uses
Best Use
Office B
$386.9K
$338.6K – $451.4K
NOI $27,086 @ 7.0% cap · market cap 9.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$528.8K
$462.7K – $616.9K
NOI $37,013 @ 7.0% cap · market cap 12.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
92
Businesses Nearby
Explore this area
Business Placement
Demographics for 35071, AL
17,162
Population
7,054
Households
2.4
Avg Household Size
42
Median Age
33%
College-Educated
91%
High-School Grad
57.7 sq mi
ZIP Area
297
Density / Sq Mi
$80,745
Median Household Income
$57,103
Median Earnings
$1,183
Median Rent
$239,500
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 - Efficient professional office layout with private rooms, reception space, kitchenette, and on-site parking.
Where is this office building located?
The property is located at 2550 Decatur Highway Gardendale, AL.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: 1,537 SF office building with six private offices; Extensive renovations completed in 2018; 2018 improvements include new roof and HVAC system
