High-Traffic Mixed-Use
For Sale
$415,000
2603 McFarland BLVD, Tuscaloosa, AL 35405
Compact commercial building along McFarland Boulevard with exposure to a substantial daily vehicle flow.
Property Size1,271 SF
Lot Size0.25 Acres
Price / SF$326.51
Days on Market317
Property Features for 2603 McFarland BLVD
General Information
Standard status
Active
Size
1,271 SF
Lot size
0.25 Acres
Property subtype
Mixed Use
Additional Details
Traffic Count
48,860 vehicles/day
Taxes and HOA fees
Annual Taxes
$2,012
Amenities
3
71*156
Building Details
Buildings
1
Listing Agency:
(205) 310-8300
Listed By:
Keller Williams Tuscaloosa
(205) 310-8300
Source:
Xome
Added: Oct 20, 2025
Changed: Aug 30
Last Checked: Aug 31 at 4:01PM
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 Tuscaloosa
Investment Insights
Based on property information with market context.
Located at 2603 McFarland Blvd in Tuscaloosa, this mixed-use property includes a commercial building on approximately 0.25 acres. The site measures 71*156 and fronts a heavily traveled commercial corridor with an estimated daily traffic count of 48,860 VPD.
The property is positioned minutes from the University of Alabama and near major retailers, restaurants, and established residential neighborhoods. Its setting provides convenient access and broad corridor exposure for a range of commercial applications, including retail, office, medical, and service-oriented businesses.
The property is positioned minutes from the University of Alabama and near major retailers, restaurants, and established residential neighborhoods. Its setting provides convenient access and broad corridor exposure for a range of commercial applications, including retail, office, medical, and service-oriented businesses.
Key Highlights
- Approximately 0.25 acres
- Estimated traffic volume of 48,860 VPD
- 71*156 site dimensions
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
$15,097
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
3.64%
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%
$301,940
$301.9K
Cap Rate 7%
$215,671
$215.7K
Cap Rate 9%
$167,744
$167.7K
Market Conditions
NOI Build-Up for 1,271 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
$26.7K $21.00/SF
− Vacancy
−$2.5K −$2.00/SF
EGI
$24.2K $19.01/SF
− OpEx
−$9.1K −$7.13/SF
NOI
$15.1K $11.88/SF
Area
Tuscaloosa, AL
Vacancy
9.50%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
37.50%
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%
$301,940
Cap Rate 7%
$215,671
Cap Rate 9%
$167,744
Alternative Uses
Best Use
Mixed Use
$215.7K
$188.7K – $251.6K
NOI $15,097 @ 7.0% cap · market cap 3.64%
Second Best
Retail
$203.9K
$178.4K – $237.9K
NOI $14,273 @ 7.0% cap · market cap 3.44%
Theoretical Best
Office A
$305.4K
$267.3K – $356.3K
NOI $21,380 @ 7.0% cap · market cap 5.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
48,860 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
564
Businesses Nearby
397k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 38%
Apparel 29%
Dining 21%
Home Improvements & Furnishings 10%
T.J. Maxx
Apparel
55,439 visits/mo
0.1 miles
HomeGoods
Home Improvements & Furnishings
37,294 visits/mo
0.1 miles
Michaels
Shops & Services
33,257 visits/mo
0.2 miles
Ross Dress for Less
Apparel
32,441 visits/mo
0.1 miles
Murphy USA
Shops & Services
32,289 visits/mo
0.1 miles
Demographics for 35405, AL
45,155
Population
22,260
Households
2
Avg Household Size
34
Median Age
31%
College-Educated
94%
High-School Grad
52.9 sq mi
ZIP Area
854
Density / Sq Mi
$61,371
Median Household Income
$39,077
Median Earnings
$1,057
Median Rent
$224,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Compact commercial building along McFarland Boulevard with exposure to a substantial daily vehicle flow.
Where is this mixed-use property located?
The property is located at 2603 McFarland BLVD Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $415,000.
What are key features of this property?
This property features: Approximately 0.25 acres; Estimated traffic volume of 48,860 VPD; 71*156 site dimensions
