Fenced Flex Property With
New
For Sale
$239,500
2640 Highway 278 W, Piedmont, AL 36272
Fenced commercial acreage combines workshop, office, garage, and multiple bathrooms.
Property Size2,150 SF
Price / SF$111.40
Days on Market5
Property Features for 2640 Highway 278 W
General Information
Standard status
Active
Size
2,150 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
2000
Listing Agency:
ERA King Real Estate
(256) 310-2233
Listed By:
Anna King · License #47542
(256) 310-2233
Source:
Exitrealty
Added: Aug 15
Changed: Aug 18
Last Checked: Aug 19 at 5:28AM
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 flex property at 2640 Highway 278 W in Piedmont, Alabama, includes 2,150 square feet of improvements on 6.8 acres. The principal workshop measures 35x50 and includes a four-car garage, while a 20x20 office provides dedicated workspace and a private bathroom. A second bathroom serves the workshop. The office features pine-cut wood finishes, creating a distinct interior character within the functional commercial layout.
The site is fully fenced and offers generous road frontage along Highway 278 W. Recent property updates include a new roof, new septic system, and fresh concrete. Constructed in 2000, the improvements provide a combination of enclosed work area, office space, vehicle accommodation, and substantial outdoor land.
The site is fully fenced and offers generous road frontage along Highway 278 W. Recent property updates include a new roof, new septic system, and fresh concrete. Constructed in 2000, the improvements provide a combination of enclosed work area, office space, vehicle accommodation, and substantial outdoor land.
Key Highlights
- 6.8 fully fenced acres with generous road frontage
- 35x50 workshop with four‑car garage
- 20x20 office with private bathroom
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
$16,602
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
6.93%
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%
$332,040
$332.0K
Cap Rate 7%
$237,171
$237.2K
Cap Rate 9%
$184,467
$184.5K
Market Conditions
NOI Build-Up for 2,150 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
$28.4K $13.20/SF
− Vacancy
−$6.2K −$2.90/SF
EGI
$22.1K $10.30/SF
− OpEx
−$5.5K −$2.57/SF
NOI
$16.6K $7.72/SF
Area
Calhoun County, AL
Vacancy
22.00%
Lease Rate
$13.20 /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%
$332,040
Cap Rate 7%
$237,171
Cap Rate 9%
$184,467
Alternative Uses
Best Use
Office B
$237.2K
$207.5K – $276.7K
NOI $16,602 @ 7.0% cap · market cap 6.93%
Second Best
Flex RnD
$158.1K
$138.4K – $184.5K
NOI $11,068 @ 7.0% cap · market cap 4.62%
Theoretical Best
Healthcare Medical
$330.5K
$289.2K – $385.6K
NOI $23,137 @ 7.0% cap · market cap 9.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36272, AL
12,854
Population
6,166
Households
2.1
Avg Household Size
44
Median Age
17%
College-Educated
85%
High-School Grad
317.9 sq mi
ZIP Area
40
Density / Sq Mi
$52,726
Median Household Income
$37,811
Median Earnings
$808
Median Rent
$123,200
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?
Flex space - Fenced commercial acreage combines workshop, office, garage, and multiple bathrooms.
Where is this flex space located?
The property is located at 2640 Highway 278 W Piedmont, AL.
What is the asking price?
The asking price for this property is $239,500.
What are key features of this property?
This property features: 6.8 fully fenced acres with generous road frontage; 35x50 workshop with four‑car garage; 20x20 office with private bathroom
