Building Details

Year Built 1950

Listing Agency: Cafe Realty LLC

Listed By: Scot McKinney · License #000120095 Show Phone

Source: Exitrealty

Added: Sep 5 Changed: Sep 7 Last Checked: Sep 8 at 3:59AM

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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 Cafe Realty LLC

Investment Insights

Based on property information with market context.

This flex space includes a fully fenced 0.24-acre site with 2 garage spaces, a covered 2-bay carport, and a separate secure outbuilding for storage. Interior improvements include an office or reception area and a bathroom, creating a practical setup for automotive, contractor, equipment, storage, and other commercial operations.

Located at 3710 Old Lee Hwy in Cherokee, Alabama, the property was built in 1950. The combination of enclosed garage capacity, covered vehicle storage, office space, and secured outdoor areas supports a range of functional commercial uses within one compact site.

Key Highlights

• Fully fenced 0.24‑acre commercial lot
• 2 garage spaces
• Covered 2‑bay carport

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

$8,736

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

6.99%

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%

$174,720 $174.7K

Cap Rate 7%

$124,800 $124.8K

Cap Rate 9%

$97,067 $97.1K

Market Conditions

NOI Build-Up for 1,400 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

$13.9K $9.96/SF

− Vacancy

−$1.5K −$1.05/SF

EGI

$12.5K $8.91/SF

− OpEx

−$3.7K −$2.67/SF

NOI

$8.7K $6.24/SF

Area

Colbert County, AL

Vacancy

10.50%

Lease Rate

$9.96 /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%

$174,720

Cap Rate 7%

$124,800

Cap Rate 9%

$97,067

Alternative Uses

Best Use

Retail

$124.8K

$109.2K – $145.6K (±1% cap)

NOI $8,736 @ 7.0% cap · market cap 6.99%

Second Best

Flex RnD

$107.6K

$94.2K – $125.6K (±1% cap)

NOI $7,535 @ 7.0% cap · market cap 6.03%

Theoretical Best

Office A

$223.6K

$195.6K – $260.8K (±1% cap)

NOI $15,650 @ 7.0% cap · market cap 12.52%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Suggested Use

Top Pick Auto Repair Shop Pharmacy Furniture & Home Goods Hair Salon (Bike/Boat/Book/etc) Store Big Box & Wholesale Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Fenced yard

Location Intelligence

Trade Area within ½ mile

80

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 35616, AL

3,756

Population

1,993

Households

1.9

Avg Household Size

47

Median Age

13%

College-Educated

86%

High-School Grad

216.0 sq mi

ZIP Area

17

Density / Sq Mi

$47,083

Median Household Income

$41,868

Median Earnings

$820

Median Rent

$94,100

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

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

Frequently Asked Questions

What type of property is this?

Flex space - Fenced commercial facility with office, bathroom, garage space, carport, and secure outbuilding storage.

Where is this flex space located?

The property is located at 3710 Old Lee Hwy Cherokee, AL.

What is the asking price?

The asking price for this property is $125,000.

What are key features of this property?

This property features: Fully fenced 0.24‑acre commercial lot; 2 garage spaces; Covered 2‑bay carport