Front-Loaded Retail and Office
For Sale
$1,400,000
456 N Section St, Fairhope, AL 36532
Two connected structures provide flexible retail and office space with about 111 feet of frontage on Section Street.
Property Size6,168 SF
Price / SF$226.98
Days on Market48
Property Features for 456 N Section St
General Information
Standard status
Active
Size
6,168 SF
Zoning
B-1
Additional Details
Road Access
Yes
Building Details
Year Built
1935
Listing Agency:
Real Broker, LLC
Listed By:
Tracie Carter · License #123420
(901) 870-7392
Source:
Coastalalabamahomesforsale
Added: Jul 25
Changed: Sep 8
Last Checked: Sep 9 at 11:15PM
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 Real Broker, LLC
Investment Insights
Based on property information with market context.
This for-sale property includes approximately 6,168 square feet across two connected structures and is currently partially occupied. The space offers a flexible layout suited to retail, office, or service-based uses, with a separate office suite featuring four private offices.
The property is zoned B-1 Local Shopping District and has approximately 111 feet of frontage on Section Street near Downtown Fairhope. It is offered as a two-parcel assemblage.
With multiple spaces under one ownership, the configuration supports continued leasing and occupancy improvements based on the existing partial occupancy.
The property is zoned B-1 Local Shopping District and has approximately 111 feet of frontage on Section Street near Downtown Fairhope. It is offered as a two-parcel assemblage.
With multiple spaces under one ownership, the configuration supports continued leasing and occupancy improvements based on the existing partial occupancy.
Key Highlights
- High‑visibility retail and office property on Section Street near Downtown Fairhope
- About 6,168 SF across two connected structures with a flexible layout for retail, office, or service uses
- Approximately 111 feet of frontage on one of Fairhope’s primary commercial corridors
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
$71,944
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
5.14%
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%
$1,438,880
$1.4M
Cap Rate 7%
$1,027,771
$1.0M
Cap Rate 9%
$799,378
$799.4K
Market Conditions
NOI Build-Up for 6,168 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
$118.4K $19.20/SF
− Vacancy
−$22.5K −$3.65/SF
EGI
$95.9K $15.55/SF
− OpEx
−$24.0K −$3.89/SF
NOI
$71.9K $11.66/SF
Area
Baldwin County, AL
Vacancy
19.00%
Lease Rate
$19.20 /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%
$1,438,880
Cap Rate 7%
$1,027,771
Cap Rate 9%
$799,378
Alternative Uses
Best Use
Office B
$1.03M
$899.3K – $1.20M
NOI $71,944 @ 7.0% cap · market cap 5.14%
Second Best
Retail
$948.1K
$829.6K – $1.11M
NOI $66,370 @ 7.0% cap · market cap 4.74%
Theoretical Best
Office A
$1.48M
$1.30M – $1.73M
NOI $103,830 @ 7.0% cap · market cap 7.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
466
Businesses Nearby
Explore this area
Business Placement
Demographics for 36532, AL
36,918
Population
17,502
Households
2.1
Avg Household Size
48
Median Age
50%
College-Educated
94%
High-School Grad
73.2 sq mi
ZIP Area
504
Density / Sq Mi
$86,026
Median Household Income
$46,129
Median Earnings
$1,374
Median Rent
$395,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Retail space - Two connected structures provide flexible retail and office space with about 111 feet of frontage on Section Street.
Where is this retail space located?
The property is located at 456 N Section St Fairhope, AL.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: High‑visibility retail and office property on Section Street near Downtown Fairhope; About 6,168 SF across two connected structures with a flexible layout for retail, office, or service uses; Approximately 111 feet of frontage on one of Fairhope’s primary commercial corridors
