Retail-Distribution Facility with
For Sale
Contact for pricing
27220 Us Highway 98, Daphne, AL 36526
Facility features a split setup with retail frontage and an attached warehouse portion totaling approximately 40,000 SF.
Property Size40,000 SF
Price / SF$93.75
Days on Market446
Property Features for 27220 Us Highway 98
General Information
Standard status
Active
Size
40,000 SF
Property subtype
INDUSTRIAL
Additional Details
Highway Access
Yes
Listing Agency:
Herrington Realty, Inc
(251) 510-2277
Listed By:
Colby Herrington, CCIM · License #0001008480
(251) 490-6995
Source:
Moodyscre
Added: Jun 23, 2025
Changed: Sep 10
Last Checked: Sep 11 at 7:26AM
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 Herrington Realty, Inc
Investment Insights
Based on property information with market context.
This retail/distribution facility is configured in two sections: approximately 24,000 SF of retail storefront and approximately 16,000 SF of warehouse space. The overall offering is intended to support businesses needing both customer-facing retail presence and back-of-house distribution or storage capacity.
The property is located just off U.S. Highway 98 in Daphne, Alabama, with access to the Interstate only a couple minutes to the north. Daphne sits along the eastern shore of Mobile Bay, providing convenient connectivity to major highways and the nearby city of Mobile within Baldwin County.
The property is located just off U.S. Highway 98 in Daphne, Alabama, with access to the Interstate only a couple minutes to the north. Daphne sits along the eastern shore of Mobile Bay, providing convenient connectivity to major highways and the nearby city of Mobile within Baldwin County.
Key Highlights
- Approx. 40,000 SF retail/distribution facility in Daphne, AL
- Split layout: approx. 24,000 SF retail storefront with attached warehouse portion
- Warehouse portion is approx. 16,000 SF
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
$252,470
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
6.73%
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%
$5,049,400
$5.0M
Cap Rate 7%
$3,606,714
$3.6M
Cap Rate 9%
$2,805,222
$2.8M
Market Conditions
NOI Build-Up for 40,000 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
$312.0K $7.80/SF
− Vacancy
−$15.0K −$0.37/SF
EGI
$297.0K $7.43/SF
− OpEx
−$44.6K −$1.11/SF
NOI
$252.5K $6.31/SF
Area
Baldwin County, AL
Vacancy
4.80%
Lease Rate
$7.80 /SF/Yr
Expense Ratio
15.00%
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%
$5,049,400
Cap Rate 7%
$3,606,714
Cap Rate 9%
$2,805,222
Alternative Uses
Best Use
Retail
$6.15M
$5.38M – $7.17M
NOI $430,416 @ 7.0% cap · market cap 11.48%
Second Best
Warehouse
$3.61M
$3.16M – $4.21M
NOI $252,470 @ 7.0% cap · market cap 6.73%
Theoretical Best
Office A
$9.62M
$8.42M – $11.22M
NOI $673,344 @ 7.0% cap · market cap 17.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
198
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 36526, AL
35,720
Population
14,074
Households
2.5
Avg Household Size
40
Median Age
43%
College-Educated
94%
High-School Grad
37.7 sq mi
ZIP Area
947
Density / Sq Mi
$90,733
Median Household Income
$50,049
Median Earnings
$1,353
Median Rent
$311,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in South region
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Frequently Asked Questions
What type of property is this?
Flex space - Facility features a split setup with retail frontage and an attached warehouse portion totaling approximately 40,000 SF.
Where is this flex space located?
The property is located at 27220 Us Highway 98 Daphne, AL.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: Approx. 40,000 SF retail/distribution facility in Daphne, AL; Split layout: approx. 24,000 SF retail storefront with attached warehouse portion; Warehouse portion is approx. 16,000 SF
