Office Building with Showroom
For Sale
$449,900
500 Kelsey Ave, Muscle Shoals, AL 35661
COMMERCIAL - Muscle Shoals, AL
Property Size3,660 SF
Lot Size0.33 Acres
Price / SF$122.92
Days on Market129
Property Features for 500 Kelsey Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
00 Commercial
Bathrooms
3
Half bathrooms
3
Rooms
Bathroom 1, Bathroom 2, Bathroom 3
Elementary school
City
Middle school
City
High school
City
Directions
From Woodward Ave, turn onto Kelsey Ave, which is the road beside Swamp John's Restaurant. Go towards the end of the street, and the building will be on your left.
Subdivision
Colbert
Standard status
Active
APN
0707352004001003
Size
3,660 SF
Lot size
0.33 Acres
Taxes and HOA fees
Tax Year
2026
Tax Description
LOTS 329 THRU 331 HIGHLAND PARK #1 120 X 120 /DB 2004-13 PG 468
Tax Annual Amount
2167
Legal Description
LOTS 329 THRU 331 HIGHLAND PARK #1 120 X 120 /DB 2004-13 PG 468
Utilities
Sewer type
Public Sewer
Amenities
3 restrooms
kitchen area
Building Details
Year built
2000
Listing Agency:
EXIT River City Realty · EXIT Realty
(256) 284-7781
Listed By:
Jackie C Wallace · License #0000736650
(256) 284-7781
Added: Apr 23
Changed: Aug 12
Last Checked: Aug 29 at 3:06AM
MLS# 528472
Copyright © 2026 Strategic MLS Alliance, INC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office building offers flexible showroom or office space, built on a concrete slab. The interior includes three restrooms and a kitchen area, supporting a range of office, service, or showroom tenant uses. The property is served by public sewer.
The building sits on a 0.33-acre lot and was built in 2000. Zoning is listed as “00 Commercial,” aligning with commercial utilization.
With multiple restroom rooms and a dedicated kitchen area, the layout can accommodate both staff and customer-facing operations that need a mix of work space and display or meeting space.
The building sits on a 0.33-acre lot and was built in 2000. Zoning is listed as “00 Commercial,” aligning with commercial utilization.
With multiple restroom rooms and a dedicated kitchen area, the layout can accommodate both staff and customer-facing operations that need a mix of work space and display or meeting space.
Key Highlights
- 3,660 SF office building with showroom or office space
- 0.33‑acre lot
- Built in 2000 on a concrete slab
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
$30,061
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
6.68%
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%
$601,220
$601.2K
Cap Rate 7%
$429,443
$429.4K
Cap Rate 9%
$334,011
$334.0K
Market Conditions
NOI Build-Up for 3,660 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
$51.4K $14.04/SF
− Vacancy
−$11.3K −$3.09/SF
EGI
$40.1K $10.95/SF
− OpEx
−$10.0K −$2.74/SF
NOI
$30.1K $8.21/SF
Area
Colbert County, AL
Vacancy
22.00%
Lease Rate
$14.04 /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%
$601,220
Cap Rate 7%
$429,443
Cap Rate 9%
$334,011
Alternative Uses
Best Use
Office B
$429.4K
$375.8K – $501.0K
NOI $30,061 @ 7.0% cap · market cap 6.68%
Second Best
Retail
$326.3K
$285.5K – $380.6K
NOI $22,838 @ 7.0% cap · market cap 5.08%
Theoretical Best
Office A
$584.5K
$511.4K – $681.9K
NOI $40,912 @ 7.0% cap · market cap 9.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
352
Businesses Nearby
Explore this area
Business Placement
Demographics for 35661, AL
18,714
Population
8,911
Households
2.1
Avg Household Size
42
Median Age
24%
College-Educated
91%
High-School Grad
51.2 sq mi
ZIP Area
366
Density / Sq Mi
$66,726
Median Household Income
$43,826
Median Earnings
$917
Median Rent
$189,700
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 - Office building on a concrete slab with showroom or office space, three restrooms, and a kitchen area.
Where is this office building located?
The property is located at 500 Kelsey Ave Muscle Shoals, AL.
What is the asking price?
The asking price for this property is $449,900.
What are key features of this property?
This property features: 3,660 SF office building with showroom or office space; 0.33‑acre lot; Built in 2000 on a concrete slab
