Professional Office
New
For Sale
$1,200,000
5500 Watermelon Road, Northport, AL 35473
CommercialSale, Northport, AL
Property Size3,956 SF
Lot Size0.85 Acres
Price / SF$303.34
Days on Market1
Property Features for 5500 Watermelon Road
General Information
Property type
Commercial Sale
Property subtype
Office
Security features
Security
Exterior features
Landscaping, SecurityLighting
Directions
From McFarland Boulevard in Northport, turn onto Watermelon Road and continue to 5500 Watermelon Road. The property will be located along Watermelon Road with convenient access from Highway 82.
Subdivision
(08) North Tuscaloosa County
Standard status
Active
APN
20-07-35-4-001-020.001
Size
3,956 SF
Lot size
0.85 Acres
Taxes and HOA fees
Tax Description
Lot 1 William D Elmore Prop.
Tax Annual Amount
2772
Legal Description
Lot 1 William D Elmore Prop.
Utilities
Heating system
Central, Electric (Heating)
Cooling system
Central Air
Amenities
tornado safe room
kitchen/break area
reception
Building Details
Number of units
1
Building materials
Brick
Roof type
Metal
Listing Agency:
Keller Williams Hoover · Keller Williams Realty
(205) 822-2272
Listed By:
Abby Pate
(205) 913-6001
Added: Sep 9
Last Checked: Sep 9 at 9:06PM
MLS# 177352
Copyright © 2026 West Alabama Multiple Listing Service. 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 3,956-square-foot office building provides a substantial professional layout with 13 private offices and a separate open office area. Interior features include a reception area, kitchen and break space, bathrooms, and a tornado safe room. Crown molding and other finished details are incorporated throughout the building.
The property occupies 0.85 acres on Watermelon Road in Northport, with access to Highway 82 and Tuscaloosa. Exterior improvements include landscaping and security lighting. The brick building has a metal roof, central air conditioning, and central electric heating.
The property occupies 0.85 acres on Watermelon Road in Northport, with access to Highway 82 and Tuscaloosa. Exterior improvements include landscaping and security lighting. The brick building has a metal roof, central air conditioning, and central electric heating.
Key Highlights
- 3,956 SF office building on 0.85 acres
- 13 individual private offices plus a separate open office area
- Reception, kitchen/break area, bathrooms, and tornado safe room
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
$45,822
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
3.82%
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%
$916,440
$916.4K
Cap Rate 7%
$654,600
$654.6K
Cap Rate 9%
$509,133
$509.1K
Market Conditions
NOI Build-Up for 3,956 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
$78.3K $19.80/SF
− Vacancy
−$17.2K −$4.36/SF
EGI
$61.1K $15.44/SF
− OpEx
−$15.3K −$3.86/SF
NOI
$45.8K $11.58/SF
Area
Tuscaloosa County, AL
Vacancy
22.00%
Lease Rate
$19.80 /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%
$916,440
Cap Rate 7%
$654,600
Cap Rate 9%
$509,133
Alternative Uses
Best Use
Office B
$654.6K
$572.8K – $763.7K
NOI $45,822 @ 7.0% cap · market cap 3.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$950.7K
$831.8K – $1.11M
NOI $66,546 @ 7.0% cap · market cap 5.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
113
Businesses Nearby
Explore this area
Business Placement
Demographics for 35473, AL
17,888
Population
8,601
Households
2.1
Avg Household Size
38
Median Age
37%
College-Educated
90%
High-School Grad
25.8 sq mi
ZIP Area
693
Density / Sq Mi
$67,224
Median Household Income
$44,581
Median Earnings
$922
Median Rent
$249,900
Median Home Value
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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?
Office building - Well-maintained professional workspace with private offices, open work area, reception, kitchen, and a tornado safe room.
Where is this office building located?
The property is located at 5500 Watermelon Road Northport, AL.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 3,956 SF office building on 0.85 acres; 13 individual private offices plus a separate open office area; Reception, kitchen/break area, bathrooms, and tornado safe room
