Flex Space with Grade-Level
For Sale
Contact for pricing
3029 3rd Ave S, Birmingham, AL 35233
M-1-zoned flex space offers office, warehouse, and adaptable commercial areas with building-wide heating and cooling except the mezzanine.
Property Size14,000 SF
Price / SF$178.57
Days on Market195
Property Features for 3029 3rd Ave S
General Information
Standard status
Active
Size
14,000 SF
Property subtype
Industrial
Zoning
M-1
Lease Type
NNN
Warehouse & Industrial
Clear Height
15 ft
Office Build-Out
3,000 SF
Drive-In Doors
3
Three-Phase Power
Yes
Conditioned Warehouse
Yes
Additional Details
Utilities to Site
Yes
Building Details
Year Built
1953
Units
1
Listing Agency:
JB Tally, LLC
Listed By:
John Tally · License #000169139-0
Source:
Crexi
Added: Feb 16
Changed: Aug 29
Last Checked: Aug 29 at 1:55PM
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 JB Tally, LLC
Investment Insights
Based on property information with market context.
This 14,000 SF flex property, built in 1953, combines approximately 3,000 SF of office space with warehouse and adaptable commercial areas. The building includes three grade-level doors, 10' - 15' clear heights, and 3-phase power. Heating and cooling serve the property except for the mezzanine area.
Zoned M-1, the property is located at 3029 3rd Ave S in Birmingham’s Lakeview area, adjacent to Pepper Place. The existing configuration may accommodate showroom, office warehouse, creative office, studio, fitness, gallery, entertainment, or food and beverage uses, subject to applicable requirements.
Zoned M-1, the property is located at 3029 3rd Ave S in Birmingham’s Lakeview area, adjacent to Pepper Place. The existing configuration may accommodate showroom, office warehouse, creative office, studio, fitness, gallery, entertainment, or food and beverage uses, subject to applicable requirements.
Key Highlights
- 14,000 SF flex property in Birmingham’s Lakeview area
- Approximately 3,000 SF of office space
- 3 grade‑level doors with 10' - 15' clear heights
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
$168,147
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%
$3,362,940
$3.4M
Cap Rate 7%
$2,402,100
$2.4M
Cap Rate 9%
$1,868,300
$1.9M
Market Conditions
NOI Build-Up for 14,000 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
$285.6K $20.40/SF
− Vacancy
−$61.4K −$4.39/SF
EGI
$224.2K $16.01/SF
− OpEx
−$56.0K −$4.00/SF
NOI
$168.1K $12.01/SF
Area
Birmingham, AL
Vacancy
21.50%
Lease Rate
$20.40 /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%
$3,362,940
Cap Rate 7%
$2,402,100
Cap Rate 9%
$1,868,300
Alternative Uses
Best Use
Office B
$2.40M
$2.10M – $2.80M
NOI $168,147 @ 7.0% cap · market cap 6.73%
Second Best
Flex RnD
$1.94M
$1.70M – $2.27M
NOI $136,063 @ 7.0% cap · market cap 5.44%
Theoretical Best
Office A
$3.29M
$2.88M – $3.83M
NOI $230,026 @ 7.0% cap · market cap 9.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
15 ft
Clear height
3
Drive-in doors
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
2,291
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35233, AL
2,588
Population
2,710
Households
1
Avg Household Size
27
Median Age
90%
College-Educated
99%
High-School Grad
1.5 sq mi
ZIP Area
1,725
Density / Sq Mi
$52,207
Median Household Income
$48,750
Median Earnings
$1,526
Median Rent
$332,100
Median Home Value
Market
Vacancy Rate% for Office in Birmingham, AL
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Similar Off Market Nearby
- Tre Luna Catering — 2513 5th Ave S, Birmingham, AL 35233
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- Architectural Hardware Supply — 200 28th St S, Birmingham, AL 35233
- Savoie — 3625 8th Ave S, Birmingham, AL 35222
Frequently Asked Questions
What type of property is this?
Flex space - M-1-zoned flex space offers office, warehouse, and adaptable commercial areas with building-wide heating and cooling except the mezzanine.
Where is this flex space located?
The property is located at 3029 3rd Ave S Birmingham, AL.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 14,000 SF flex property in Birmingham’s Lakeview area; Approximately 3,000 SF of office space; 3 grade‑level doors with 10' - 15' clear heights
