O-1 Zoned Office
For Sale
$695,000
510 Cotton Gin Road, Montgomery, AL 36117
The building supports medical, professional, and general office uses.
Property Size5,090 SF
Price / SF$139.06
Days on Market194
Property Features for 510 Cotton Gin Road
General Information
Standard status
Active
Size
5,090 SF
Class
A
Property subtype
Multi Tenant Office
Zoning
O-1
Additional Details
Highway Access
Yes
Building Details
Building Size
5,090 SF
Year Built
2006
Buildings
1
Properties For Sale
at 510 Cotton Gin Road Contact us- Size
- 2,415 SF
- Lease Type
- NNN
510
Listing Agency:
Moore Company Realty, Inc
(334) 262-1958
Listed By:
Gene Cody, CCIM
(334) 262-1958
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 5:32PM
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 Moore Company Realty, Inc
Investment Insights
Based on property information with market context.
Located at 510 Cotton Gin Road in Montgomery, this 4,998 SF office building was constructed in 2006 and carries O-1 zoning. The property is suited to medical, professional, and general office uses, providing a focused commercial setting for office operations.
The building is positioned near Taylor Road, Baptist Medical Center East, Auburn University at Montgomery, and Interstate 85. EastChase and Eastdale Mall add nearby retail, dining, and entertainment options, while surrounding major thoroughfares connect the property with the broader East Montgomery area.
The building is positioned near Taylor Road, Baptist Medical Center East, Auburn University at Montgomery, and Interstate 85. EastChase and Eastdale Mall add nearby retail, dining, and entertainment options, while surrounding major thoroughfares connect the property with the broader East Montgomery area.
Key Highlights
- 4,998 SF office building constructed in 2006
- O‑1 zoning supports medical, professional, and general office use
- Near Taylor Road, Baptist Medical Center East, and Auburn University at Montgomery
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
$55,328
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
7.96%
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%
$1,106,560
$1.1M
Cap Rate 7%
$790,400
$790.4K
Cap Rate 9%
$614,756
$614.8K
Market Conditions
NOI Build-Up for 4,998 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
$90.0K $18.00/SF
− Vacancy
−$16.2K −$3.24/SF
EGI
$73.8K $14.76/SF
− OpEx
−$18.4K −$3.69/SF
NOI
$55.3K $11.07/SF
Area
Montgomery, AL
Vacancy
18.00%
Lease Rate
$18.00 /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%
$1,106,560
Cap Rate 7%
$790,400
Cap Rate 9%
$614,756
Alternative Uses
Best Use
Office B
$790.4K
$691.6K – $922.1K
NOI $55,328 @ 7.0% cap · market cap 7.96%
Second Best
Healthcare Medical
$786.5K
$688.2K – $917.6K
NOI $55,058 @ 7.0% cap · market cap 7.92%
Theoretical Best
Office A
$1.04M
$906.8K – $1.21M
NOI $72,547 @ 7.0% cap · market cap 10.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,036
Businesses Nearby
Explore this area
Business Placement
Demographics for 36117, AL
53,172
Population
24,181
Households
2.2
Avg Household Size
38
Median Age
46%
College-Educated
94%
High-School Grad
53.3 sq mi
ZIP Area
998
Density / Sq Mi
$72,237
Median Household Income
$44,980
Median Earnings
$1,209
Median Rent
$225,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - The building supports medical, professional, and general office uses.
Where is this office building located?
The property is located at 510 Cotton Gin Road Montgomery, AL.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: 4,998 SF office building constructed in 2006; O‑1 zoning supports medical, professional, and general office use; Near Taylor Road, Baptist Medical Center East, and Auburn University at Montgomery
