Pelham Parkway Flex
For Sale
$1,365,000
3543 Pelham Parkway, Pelham, AL 35124
Freestanding, renovated showroom/warehouse space with excellent visibility.
Property Size10,204 SF
Price / SF$133.77
Days on Market134
Property Features for 3543 Pelham Parkway
General Information
Standard status
Active
Size
10,204 SF
Property subtype
Industrial
Building Details
Building Size
10,204 SF
Listing Agency:
Ironvest Partners
Listed By:
Jordan Weaver · License #AL #000126065-0
(678) 577-2748
Source:
Ironvestpartners
Added: May 14
Changed: Sep 20
Last Checked: Sep 24 at 6:59AM
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 Ironvest Partners
Investment Insights
Based on property information with market context.
Located directly off Pelham Parkway, 3543 Pelham Parkway offers convenient access to I-65. The freestanding building provides approximately 8,354 square feet of showroom and warehouse space, along with an additional approximately 1,850 square feet in a quonset hut located behind the building, accessible via two drive-in doors. The space has been newly renovated and is in great condition, suitable for showroom, warehousing, or retail use.
Key Highlights
- Excellent visibility and frontage directly off Pelham Parkway.
- Convenient access to I‑65.
- Freestanding flex building with ±8,354 SF of showroom/warehouse space.
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
$43,457
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
3.18%
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%
$869,140
$869.1K
Cap Rate 7%
$620,814
$620.8K
Cap Rate 9%
$482,856
$482.9K
Market Conditions
NOI Build-Up for 10,204 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
$73.5K $7.20/SF
− Vacancy
−$6.6K −$0.65/SF
EGI
$66.9K $6.55/SF
− OpEx
−$23.4K −$2.29/SF
NOI
$43.5K $4.26/SF
Area
Shelby County, AL
Vacancy
9.00%
Lease Rate
$7.20 /SF/Yr
Expense Ratio
35.00%
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%
$869,140
Cap Rate 7%
$620,814
Cap Rate 9%
$482,856
Alternative Uses
Best Use
Flex RnD
$620.8K
$543.2K – $724.3K
NOI $43,457 @ 7.0% cap · market cap 3.18%
Second Best
Industrial
$618.9K
$541.6K – $722.1K
NOI $43,324 @ 7.0% cap · market cap 3.17%
Theoretical Best
Office A
$2.40M
$2.10M – $2.79M
NOI $167,656 @ 7.0% cap · market cap 12.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
355
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35124, AL
25,667
Population
10,207
Households
2.5
Avg Household Size
40
Median Age
50%
College-Educated
95%
High-School Grad
42.6 sq mi
ZIP Area
603
Density / Sq Mi
$91,513
Median Household Income
$50,970
Median Earnings
$1,575
Median Rent
$282,600
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 - Freestanding, renovated showroom/warehouse space with excellent visibility.
Where is this flex space located?
The property is located at 3543 Pelham Parkway Pelham, AL.
What is the asking price?
The asking price for this property is $1,365,000.
What are key features of this property?
This property features: Excellent visibility and frontage directly off Pelham Parkway.; Convenient access to I‑65.; Freestanding flex building with ±8,354 SF of showroom/warehouse space.
