Two-Story Office
For Sale
$995,000
5690 Watermelon Road Unit 125, Northport, AL 35473
Flexible professional layout includes private offices, conference and training rooms, break areas, and multiple restrooms.
Property Size4,200 SF
Price / SF$236.90
Days on Market366
Property Features for 5690 Watermelon Road Unit 125
General Information
Standard status
Active
Size
4,200 SF
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$2,935
Amenities
3
IRREGULAR
Building Details
Year Built
2010
Listing Agency:
(205) 292-9771
Listed By:
Pritchett Moore Real Estate
(205) 292-9771
Source:
Xome
Added: Aug 31, 2025
Changed: Aug 30
Last Checked: Aug 31 at 2:00PM
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 Pritchett Moore Real Estate
Investment Insights
Based on property information with market context.
This 4,200-square-foot office building in Northport, Alabama, was built in 2010 and arranged across two levels. The main floor includes a reception area, conference room, nine private offices, four restrooms, a breakroom, and a file room. The upper level adds two offices, a training room, kitchenette, and another bathroom. Interior details include 11' ceilings and three zoned HVAC systems. Formerly used as a law office, the property offers a finished professional environment with separate work, meeting, administrative, and staff-support areas. Its configuration is suited to firms and service-oriented businesses that require private offices alongside collaborative and training space.
Key Highlights
- 4,200‑square‑foot office building constructed in 2010
- Two‑level layout with 11 private offices
- Main floor includes reception, conference room, breakroom, file room, and four restrooms
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
$48,649
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
4.89%
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%
$972,980
$973.0K
Cap Rate 7%
$694,986
$695.0K
Cap Rate 9%
$540,544
$540.5K
Market Conditions
NOI Build-Up for 4,200 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
$83.2K $19.80/SF
− Vacancy
−$18.3K −$4.36/SF
EGI
$64.9K $15.44/SF
− OpEx
−$16.2K −$3.86/SF
NOI
$48.6K $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%
$972,980
Cap Rate 7%
$694,986
Cap Rate 9%
$540,544
Alternative Uses
Best Use
Office B
$695.0K
$608.1K – $810.8K
NOI $48,649 @ 7.0% cap · market cap 4.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.01M
$883.1K – $1.18M
NOI $70,651 @ 7.0% cap · market cap 7.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
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
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 - Flexible professional layout includes private offices, conference and training rooms, break areas, and multiple restrooms.
Where is this office building located?
The property is located at 5690 Watermelon Road Unit 125 Northport, AL.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 4,200‑square‑foot office building constructed in 2010; Two‑level layout with 11 private offices; Main floor includes reception, conference room, breakroom, file room, and four restrooms
