Midtown Office/Medical Building For
For Sale
$3,290,000
3512 Old Montgomery Highway, Homewood, AL 35209
Two-story, 10,824 SF office/medical building in the Midtown market.
Property Size10,824 SF
Price / SF$303.95
Days on Market162
Property Features for 3512 Old Montgomery Highway
General Information
Standard status
Active
Size
10,824 SF
Property subtype
Office
Building Details
Building Size
10,824 SF
Listing Agency:
Graham & Company Birmingham
Listed By:
Jerry Grant, CCIM · License #000080935
(205) 871-7100
Source:
Grahamcompany
Added: Mar 27
Changed: Sep 4
Last Checked: Sep 4 at 4:08AM
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 Graham & Company Birmingham
Investment Insights
Based on property information with market context.
This two-story, 10,824 SF office/medical building is available for sale in the Midtown market. The Homewood location provides convenient access to US Hwy. 31, US Hwy. 280, Lakeshore Parkway, and I-65. It is located less than 0.5 miles from the Lakeshore Foundation and less than 1 mile from Baptist Health Brookwood Hospital and Samford University. The property is ideal for lab space, a medical office, or an office conversion. It features one elevator. The current floor plan includes a large conference room, training room, work areas, and a break room on both floors, along with an unfinished first-floor storage area. The surface parking lot includes 34 spaces in the front lot and 10 spaces in the back lot, with one handicap parking space in each lot. Prominent signage opportunities are available.
Key Highlights
- Ideal for lab space, medical office, or office conversion.
- Convenient Homewood location with easy access to US Hwy. 31, US Hwy. 280, Lakeshore Parkway, and I‑65.
- Proximity to Lakeshore Foundation, Baptist Health Brookwood Hospital, and Samford University.
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
$190,746
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
5.80%
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%
$3,814,920
$3.8M
Cap Rate 7%
$2,724,943
$2.7M
Cap Rate 9%
$2,119,400
$2.1M
Market Conditions
NOI Build-Up for 10,824 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
$287.1K $26.52/SF
− Vacancy
−$32.7K −$3.02/SF
EGI
$254.3K $23.50/SF
− OpEx
−$63.6K −$5.87/SF
NOI
$190.7K $17.62/SF
Area
Jefferson County, AL
Vacancy
11.40%
Lease Rate
$26.52 /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%
$3,814,920
Cap Rate 7%
$2,724,943
Cap Rate 9%
$2,119,400
Alternative Uses
Best Use
Office B
$2.72M
$2.38M – $3.18M
NOI $190,746 @ 7.0% cap · market cap 5.80%
Second Best
Healthcare Medical
$2.62M
$2.30M – $3.06M
NOI $183,669 @ 7.0% cap · market cap 5.58%
Theoretical Best
Office A
$3.72M
$3.26M – $4.34M
NOI $260,657 @ 7.0% cap · market cap 7.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
783
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35209, AL
27,827
Population
15,141
Households
1.8
Avg Household Size
34
Median Age
54%
College-Educated
93%
High-School Grad
9.6 sq mi
ZIP Area
2,899
Density / Sq Mi
$72,383
Median Household Income
$45,513
Median Earnings
$1,246
Median Rent
$465,600
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?
Medical Office Space - Two-story, 10,824 SF office/medical building in the Midtown market.
Where is this medical office space located?
The property is located at 3512 Old Montgomery Highway Homewood, AL.
What is the asking price?
The asking price for this property is $3,290,000.
What are key features of this property?
This property features: Ideal for lab space, medical office, or office conversion.; Convenient Homewood location with easy access to US Hwy. 31, US Hwy. 280, Lakeshore Parkway, and I‑65.; Proximity to Lakeshore Foundation, Baptist Health Brookwood Hospital, and Samford University.
