Flexible Office
For Sale
$625,000
407 3rd St Se, Hanceville, AL 35077
Brick commercial property with offices, classrooms, gathering areas, and on-site parking.
Property Size5,000 SF
Price / SF$125
Days on Market137
Property Features for 407 3rd St Se
General Information
Standard status
Active
Size
5,000 SF
Property subtype
Business Opportunity
Amenities
offices/classrooms
5 bathrooms
kitchen
cafeteria-style dining area
open gathering space
onsite parking
Building Details
Buildings
1
Building Size
5,000 SF
Construction
brick
Listing Agency:
Nxcel Realty
(256) 531-7785
Listed By:
Michele Duke · License #75500
(256) 531-7785
Source:
Exprealty
Added: Mar 28
Changed: Aug 8
Last Checked: Aug 10 at 8:05AM
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 Nxcel Realty
Investment Insights
Based on property information with market context.
This brick office building in Hanceville offers approximately 5,000 square feet arranged for varied commercial operations. The interior includes multiple offices and classrooms, five bathrooms, a kitchen, a cafeteria-style dining area, and additional open gathering space. The building’s adaptable configuration supports a range of office-oriented layouts and functions.
Located at 407 3rd St SE in Hanceville, the property also provides ample on-site parking. Its combination of dedicated rooms, shared areas, food-service infrastructure, and parking creates a practical setting for an organization requiring more than conventional office space.
Located at 407 3rd St SE in Hanceville, the property also provides ample on-site parking. Its combination of dedicated rooms, shared areas, food-service infrastructure, and parking creates a practical setting for an organization requiring more than conventional office space.
Key Highlights
- Approximately 5,000 square feet in a brick office building
- Multiple offices and classrooms support a varied interior layout
- Five bathrooms, kitchen, and cafeteria‑style dining area
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
$39,690
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
6.35%
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%
$793,800
$793.8K
Cap Rate 7%
$567,000
$567.0K
Cap Rate 9%
$441,000
$441.0K
Market Conditions
NOI Build-Up for 5,000 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
$63.0K $12.60/SF
− Vacancy
−$10.1K −$2.02/SF
EGI
$52.9K $10.58/SF
− OpEx
−$13.2K −$2.65/SF
NOI
$39.7K $7.94/SF
Area
Cullman County, AL
Vacancy
16.00%
Lease Rate
$12.60 /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%
$793,800
Cap Rate 7%
$567,000
Cap Rate 9%
$441,000
Alternative Uses
Best Use
Office B
$567.0K
$496.1K – $661.5K
NOI $39,690 @ 7.0% cap · market cap 6.35%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$737.1K
$645.0K – $860.0K
NOI $51,600 @ 7.0% cap · market cap 8.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
35
Businesses Nearby
Explore this area
Business Placement
Demographics for 35077, AL
13,813
Population
6,045
Households
2.3
Avg Household Size
42
Median Age
14%
College-Educated
79%
High-School Grad
150.2 sq mi
ZIP Area
92
Density / Sq Mi
$47,720
Median Household Income
$29,221
Median Earnings
$822
Median Rent
$157,000
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?
Office building - Brick commercial property with offices, classrooms, gathering areas, and on-site parking.
Where is this office building located?
The property is located at 407 3rd St Se Hanceville, AL.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Approximately 5,000 square feet in a brick office building; Multiple offices and classrooms support a varied interior layout; Five bathrooms, kitchen, and cafeteria‑style dining area
