Leased Retail
For Sale
Contact for pricing
Pending
3839 Gulf Shores Parkway, Gulf Shores, AL 36542
Retail investment with an 11-year lease featuring scheduled 10% increases every five years.
Property Size18,000 SF
Days on Market150
Property Features for 3839 Gulf Shores Parkway
General Information
Standard status
Pending
Size
18,000 SF
Property subtype
Retail, Office, Industrial
Zoning
General Business
Investment Type
Owner/User
Site & Location
Traffic Count
43,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Listing Agency:
Marcus & Millichap - Mobile
Listed By:
Andrew Chason · License #AL 000079317-0
(205) 871-5360
Source:
Crexi
Added: Apr 10
Changed: Aug 31
Last Checked: Aug 28 at 11:56AM
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 Marcus & Millichap - Mobile
Investment Insights
Based on property information with market context.
This retail property is offered as a leased investment with an 11-year lease term and scheduled 10% increases every five years, providing ongoing rent growth mechanics over the lease period.
Located on Gulf Shores Parkway in a high-traffic corridor, the property is described as across from Publix, Cobb Theaters, and Bed Bath & Beyond, with 43,000+ cars per day reported along Highway 59. The surrounding area is also described as near Craft Farms Golf Resort, Faulkner State Community College, and Columbia Southern University, with additional major retailers in the vicinity including Tanger Outlet Center, Walmart Supercenter, Lowe’s, Home Depot, and Hobby Lobby.
Located on Gulf Shores Parkway in a high-traffic corridor, the property is described as across from Publix, Cobb Theaters, and Bed Bath & Beyond, with 43,000+ cars per day reported along Highway 59. The surrounding area is also described as near Craft Farms Golf Resort, Faulkner State Community College, and Columbia Southern University, with additional major retailers in the vicinity including Tanger Outlet Center, Walmart Supercenter, Lowe’s, Home Depot, and Hobby Lobby.
Key Highlights
- Retail investment with an 11‑year lease and scheduled 10% increases every five years
- Located on Highway 59 with 43,000+ cars/day traffic count
- Across from Publix, Cobb Theaters, and Bed Bath & Beyond
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
$193,687
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
6.25%
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%
$3,873,740
$3.9M
Cap Rate 7%
$2,766,957
$2.8M
Cap Rate 9%
$2,152,078
$2.2M
Market Conditions
NOI Build-Up for 18,000 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
$302.4K $16.80/SF
− Vacancy
−$25.7K −$1.43/SF
EGI
$276.7K $15.37/SF
− OpEx
−$83.0K −$4.61/SF
NOI
$193.7K $10.76/SF
Area
Baldwin County, AL
Vacancy
8.50%
Lease Rate
$16.80 /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%
$3,873,740
Cap Rate 7%
$2,766,957
Cap Rate 9%
$2,152,078
Alternative Uses
Best Use
Retail
$2.77M
$2.42M – $3.23M
NOI $193,687 @ 7.0% cap · market cap 6.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.33M
$3.79M – $5.05M
NOI $303,005 @ 7.0% cap · market cap 9.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
43,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
448
Businesses Nearby
Explore this area
Business Placement
Demographics for 36542, AL
16,993
Population
18,551
Households
0.9
Avg Household Size
51
Median Age
38%
College-Educated
95%
High-School Grad
52.0 sq mi
ZIP Area
327
Density / Sq Mi
$74,861
Median Household Income
$35,580
Median Earnings
$1,365
Median Rent
$366,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail investment with an 11-year lease featuring scheduled 10% increases every five years.
Where is this retail space located?
The property is located at 3839 Gulf Shores Parkway Gulf Shores, AL.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: Retail investment with an 11‑year lease and scheduled 10% increases every five years; Located on Highway 59 with 43,000+ cars/day traffic count; Across from Publix, Cobb Theaters, and Bed Bath & Beyond
