Large Office
New
For Sale
$6,200,000
2928 N McVay Dr, Mobile, AL 36606
Move-in-ready office space includes large rooms, conference areas, training rooms, and a two-floor break room.
Property Size37,000 SF
Lot Size2.02 Acres
Price / SF$167.57
Days on Market2
Property Features for 2928 N McVay Dr
General Information
Standard status
Active
Size
37,000 SF
Class
A
Lot size
2.02 Acres
Property subtype
office
Building Details
Buildings
1
Building Size
37,000 SF
Listing Agency:
Mobile
(251) 301-7369
Listed By:
Allen Garstecki · License #000086902-0
(251) 301-7369
Source:
Property.jll
Added: Aug 12
Changed: Aug 13
Last Checked: Aug 13 at 6:06AM
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 Mobile
Investment Insights
Based on property information with market context.
This 37,000 SF office building in Mobile, Alabama, is configured for immediate occupancy and organized departmental operations. The property includes multiple large rooms suitable for office divisions, conference functions, training, and team-based work, along with a two-floor break room featuring both indoor and outdoor seating areas.
The building occupies a 2.02-acre site at 2928 N McVay Dr. An 8.72-acre development parcel is located across the street, providing an additional property component identified with the offering.
The building occupies a 2.02-acre site at 2928 N McVay Dr. An 8.72-acre development parcel is located across the street, providing an additional property component identified with the offering.
Key Highlights
- 37,000 SF office building on a 2.02‑acre site
- Ready for immediate occupancy
- Multiple large rooms for departmental divisions and team‑based work
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
$514,402
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
8.30%
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%
$10,288,040
$10.3M
Cap Rate 7%
$7,348,600
$7.3M
Cap Rate 9%
$5,715,578
$5.7M
Market Conditions
NOI Build-Up for 37,000 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
$821.4K $22.20/SF
− Vacancy
−$135.5K −$3.66/SF
EGI
$685.9K $18.54/SF
− OpEx
−$171.5K −$4.63/SF
NOI
$514.4K $13.90/SF
Area
Mobile, AL
Vacancy
16.50%
Lease Rate
$22.20 /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%
$10,288,040
Cap Rate 7%
$7,348,600
Cap Rate 9%
$5,715,578
Alternative Uses
Best Use
Office B
$7.35M
$6.43M – $8.57M
NOI $514,402 @ 7.0% cap · market cap 8.30%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.40M
$8.23M – $10.97M
NOI $658,292 @ 7.0% cap · market cap 10.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
277
Businesses Nearby
Explore this area
Business Placement
Demographics for 36606, AL
19,042
Population
9,129
Households
2.1
Avg Household Size
35
Median Age
29%
College-Educated
89%
High-School Grad
6.8 sq mi
ZIP Area
2,800
Density / Sq Mi
$49,561
Median Household Income
$37,094
Median Earnings
$938
Median Rent
$141,300
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Move-in-ready office space includes large rooms, conference areas, training rooms, and a two-floor break room.
Where is this office building located?
The property is located at 2928 N McVay Dr Mobile, AL.
What is the asking price?
The asking price for this property is $6,200,000.
What are key features of this property?
This property features: 37,000 SF office building on a 2.02‑acre site; Ready for immediate occupancy; Multiple large rooms for departmental divisions and team‑based work
