Freestanding Commercial Building with
For Sale
Contact for pricing
417 2nd Ave N, Birmingham, AL 35204
Commercial building in Birmingham with land and expansion potential.
Property Size2,800 SF
Lot Size0.49 Acres
Price / SF$142.86
Days on Market151
Property Features for 417 2nd Ave N
General Information
Standard status
Active
Size
2,800 SF
Class
C
Lot size
0.49 Acres
Property subtype
Industrial, Office
Zoning
Commercial
Building Details
Year Built
2002
Buildings
1
Stories
1
Units
1
Listing Agency:
KW Commercial Chattanooga - Downtown
Listed By:
Brockman Missel · License #TN 358225
Source:
Crexi
Added: Mar 13
Changed: Aug 8
Last Checked: Aug 10 at 1:20PM
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 KW Commercial Chattanooga - Downtown
Investment Insights
Based on property information with market context.
The property at 417 2nd Ave N is a freestanding commercial building in Birmingham, offering operational flexibility and additional land. The building encompasses approximately 2,800 square feet and is situated on roughly 0.49 acres across three contiguous parcels. This provides valuable parking, yard space, and potential for future expansion. The building features a straightforward layout suitable for various commercial uses, including contractor offices, staffing agencies, service retail, logistics support, or small business headquarters. The property's size and additional land make it an attractive opportunity for both owner-users and investors, as freestanding buildings of this type are increasingly limited within the Birmingham market. The property is strategically positioned minutes from Downtown Birmingham, providing convenient access to major commercial corridors and Interstate 20 / Interstate 59, allowing efficient connectivity throughout the Birmingham metro area. The surrounding area comprises a mix of residential neighborhoods, industrial users, and service-based businesses, creating a strong workforce corridor that supports daily commercial activity. The property provides a flexible platform for businesses seeking to control their real estate while maintaining accessibility to Birmingham’s core economic centers.
Key Highlights
- Rare freestanding commercial building with additional land (0.49 acres) in Birmingham.
- Strategic location minutes from Downtown Birmingham with convenient access to I‑20/I‑59.
- Flexible layout suitable for various commercial uses (contractor offices, staffing agencies, etc.).
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
$33,629
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
8.41%
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%
$672,580
$672.6K
Cap Rate 7%
$480,414
$480.4K
Cap Rate 9%
$373,656
$373.7K
Market Conditions
NOI Build-Up for 2,800 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
$57.1K $20.40/SF
− Vacancy
−$12.3K −$4.39/SF
EGI
$44.8K $16.01/SF
− OpEx
−$11.2K −$4.00/SF
NOI
$33.6K $12.01/SF
Area
Birmingham, AL
Vacancy
21.50%
Lease Rate
$20.40 /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%
$672,580
Cap Rate 7%
$480,414
Cap Rate 9%
$373,656
Alternative Uses
Best Use
Office B
$480.4K
$420.4K – $560.5K
NOI $33,629 @ 7.0% cap · market cap 8.41%
Second Best
Mixed Use
$464.4K
$406.4K – $541.8K
NOI $32,508 @ 7.0% cap · market cap 8.13%
Theoretical Best
Office A
$657.2K
$575.1K – $766.8K
NOI $46,005 @ 7.0% cap · market cap 11.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
587
Businesses Nearby
Explore this area
Business Placement
Demographics for 35204, AL
9,271
Population
5,333
Households
1.7
Avg Household Size
43
Median Age
14%
College-Educated
83%
High-School Grad
5.0 sq mi
ZIP Area
1,854
Density / Sq Mi
$32,880
Median Household Income
$27,864
Median Earnings
$716
Median Rent
$81,600
Median Home Value
Market
Vacancy Rate% for Office in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial building in Birmingham with land and expansion potential.
Where is this mixed-use property located?
The property is located at 417 2nd Ave N Birmingham, AL.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Rare freestanding commercial building with additional land (0.49 acres) in Birmingham.; Strategic location minutes from Downtown Birmingham with convenient access to I‑20/I‑59.; Flexible layout suitable for various commercial uses (contractor offices, staffing agencies, etc.).
