Historic Office
For Sale
$699,000
2606 8th Street, Tuscaloosa, AL 35401
COMMERCIAL - Tuscaloosa, AL
Property Size2,140 SF
Lot Size0.22 Acres
Price / SF$326.64
Days on Market178
Property Features for 2606 8th Street
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
From Downtown Tuscaloosa, travel toward the County Courthouse. Turn right onto 8th Street then travel across Lurleen B. Wallace Blvd. The building will be on the corner.
Subdivision
(04) West Tuscaloosa City
Standard status
Active
APN
63-31-05-22-3-008-010.000
Size
2,140 SF
Lot size
0.22 Acres
Taxes and HOA fees
Tax Description
LOT PT. 251 IN ORIG. CITY, SUR. SUBD DESC. AS: COM NE COR LOT 251 TH SW 40' TO BEG TH SW 75' TH NW 132 (D) 127 (S) TH NE 75' TH SE 132 (D) 127 (S) TO POB.
Tax Annual Amount
3200
Legal Description
LOT PT. 251 IN ORIG. CITY, SUR. SUBD DESC. AS: COM NE COR LOT 251 TH SW 40' TO BEG TH SW 75' TH NW 132 (D) 127 (S) TH NE 75' TH SE 132 (D) 127 (S) TO POB.
Building Details
Number of units
1
Listing Agency:
Harwood Real Estate LLC
(205) 764-1637
Listed By:
Richard Harwood · License #118535018
(205) 799-2210
Added: Mar 4
Changed: Aug 19
Last Checked: Aug 29 at 4:06PM
MLS# 174984
Copyright © 2026 West Alabama Multiple Listing Service. 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 2,140-square-foot office property occupies 0.22 acres at 2606 8th Street in Tuscaloosa. The antebellum-style design incorporates tall ceilings and detailed architectural elements, while adaptable interior planning supports a range of professional office configurations.
The property is situated in downtown Tuscaloosa near the courthouse, retail, and dining. Its visible setting and convenient access provide a practical base for office users seeking a distinctive building within an established business district.
The property is situated in downtown Tuscaloosa near the courthouse, retail, and dining. Its visible setting and convenient access provide a practical base for office users seeking a distinctive building within an established business district.
Key Highlights
- 2,140‑square‑foot office property on 0.22 acres
- Antebellum‑style design with detailed architectural elements
- High ceilings and adaptable office layouts
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
$24,788
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
3.55%
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%
$495,760
$495.8K
Cap Rate 7%
$354,114
$354.1K
Cap Rate 9%
$275,422
$275.4K
Market Conditions
NOI Build-Up for 2,140 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
$42.4K $19.80/SF
− Vacancy
−$9.3K −$4.36/SF
EGI
$33.1K $15.44/SF
− OpEx
−$8.3K −$3.86/SF
NOI
$24.8K $11.58/SF
Area
Tuscaloosa, AL
Vacancy
22.00%
Lease Rate
$19.80 /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%
$495,760
Cap Rate 7%
$354,114
Cap Rate 9%
$275,422
Alternative Uses
Best Use
Office B
$354.1K
$309.9K – $413.1K
NOI $24,788 @ 7.0% cap · market cap 3.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$514.3K
$450.0K – $600.0K
NOI $35,998 @ 7.0% cap · market cap 5.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
32
Businesses Nearby
Explore this area
Business Placement
Demographics for 35401, AL
41,852
Population
19,517
Households
2.1
Avg Household Size
26
Median Age
27%
College-Educated
85%
High-School Grad
40.1 sq mi
ZIP Area
1,044
Density / Sq Mi
$30,031
Median Household Income
$13,041
Median Earnings
$911
Median Rent
$141,100
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?
Office building - Flexible interior planning supports professional office use in a downtown business setting.
Where is this office building located?
The property is located at 2606 8th Street Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: 2,140‑square‑foot office property on 0.22 acres; Antebellum‑style design with detailed architectural elements; High ceilings and adaptable office layouts
