Listing Agency: Integtrity Real Estate

Listed By: Bobby Bynum · License #Al 106724 Show Phone

Source: Crexi

Added: Mar 15, 2024 Changed: Aug 31 Last Checked: Sep 15 at 5:06AM

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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 Integtrity Real Estate

Investment Insights

Based on property information with market context.

This commercial real estate property, identified as retail space, is available for sale. The property offers a total size of 2560 square feet and is located in Montevallo, Alabama.

Key Highlights

• No property information was provided to generate selling points.

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

$24,111

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

6.36%

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%

$482,220 $482.2K

Cap Rate 7%

$344,443 $344.4K

Cap Rate 9%

$267,900 $267.9K

Market Conditions

NOI Build-Up for 2,560 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

$38.4K $15.00/SF

− Vacancy

−$4.0K −$1.55/SF

EGI

$34.4K $13.46/SF

− OpEx

−$10.3K −$4.04/SF

NOI

$24.1K $9.42/SF

Area

Shelby County, AL

Vacancy

10.30%

Lease Rate

$15.00 /SF/Yr

Expense Ratio

30.00%

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%

$482,220

Cap Rate 7%

$344,443

Cap Rate 9%

$267,900

Alternative Uses

Best Use

Retail

$344.4K

$301.4K – $401.9K (±1% cap)

NOI $24,111 @ 7.0% cap · market cap 6.36%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$600.9K

$525.8K – $701.0K (±1% cap)

NOI $42,062 @ 7.0% cap · market cap 11.10%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Retail space

Location Intelligence

Trade Area within ½ mile

15

Businesses Nearby

Explore this area Business Placement

Demographics for 35115, AL

15,260

Population

6,388

Households

2.4

Avg Household Size

34

Median Age

22%

College-Educated

82%

High-School Grad

123.4 sq mi

ZIP Area

124

Density / Sq Mi

$54,157

Median Household Income

$32,000

Median Earnings

$807

Median Rent

$165,800

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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What type of property is this? Where is this retail space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Retail space - Retail space available for purchase in Montevallo, Alabama.

Where is this retail space located?

The property is located at 356 Co Rd 54 Montevallo, AL.

What is the asking price?

The asking price for this property is $379,000.

What are key features of this property?

This property features: No property information was provided to generate selling points.