Building Details

Year built 2009

Floors in Building 1

Flooring type Concrete

Listing Agency: Redstone Realty Solutions-Dec Show Phone

Listed By: Chance Higdon · License #77903 Show Phone

Added: Jan 19 Changed: Sep 12 Last Checked: Sep 27 at 10:06AM

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MLS# 21895030

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Investment Insights

Based on property information with market context.

This 3,640-square-foot retail building was constructed in 2009 and includes concrete flooring and a bathroom. The property has received updates and is configured for either retail or restaurant operations, with a paved parking area supporting the improvements.

Located at 59 Douglas Road in Falkville, the building sits just off I-65 at Exit 322 and beside Loves. Public water and a septic tank serve the property, which occupies 0.5236 acres in Morgan County.

Key Highlights

• 3,640‑square‑foot commercial building on 0.5236 acres
• Retail or restaurant use identified for the building
• Just off I‑65 Exit 322 in Falkville

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

$30,102

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

7.00%

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%

$602,040 $602.0K

Cap Rate 7%

$430,029 $430.0K

Cap Rate 9%

$334,467 $334.5K

Market Conditions

NOI Build-Up for 3,640 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

$48.0K $13.20/SF

− Vacancy

−$5.0K −$1.39/SF

EGI

$43.0K $11.81/SF

− OpEx

−$12.9K −$3.54/SF

NOI

$30.1K $8.27/SF

Area

Morgan County, AL

Vacancy

10.50%

Lease Rate

$13.20 /SF/Yr

Expense Ratio

30.00%

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%

$602,040

Cap Rate 7%

$430,029

Cap Rate 9%

$334,467

Alternative Uses

Best Use

Retail

$430.0K

$376.3K – $501.7K (±1% cap)

NOI $30,102 @ 7.0% cap · market cap 7.00%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$757.3K

$662.6K – $883.5K (±1% cap)

NOI $53,010 @ 7.0% cap · market cap 12.33%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Retail space

Suggested Use

Top Pick Building Supply Auto Parts Store Big Box & Wholesale Store Plumbing Service (Bike/Boat/Book/etc) Store Storage Facility

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

64

Businesses Nearby

15k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Marathon Petroleum Shops & Services

9,643 visits/mo 0.4 miles

Chevron Shops & Services

4,973 visits/mo 0.2 miles

Demographics for 35622, AL

7,257

Population

2,803

Households

2.6

Avg Household Size

43

Median Age

12%

College-Educated

88%

High-School Grad

96.4 sq mi

ZIP Area

75

Density / Sq Mi

$53,354

Median Household Income

$37,182

Median Earnings

$880

Median Rent

$174,400

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this retail space located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Retail space - Retail building with concrete floors, paved parking, and stated suitability for retail or restaurant use.

Where is this retail space located?

The property is located at 59 Douglas Road Falkville, AL.

What is the asking price?

The asking price for this property is $429,900.

What are key features of this property?

This property features: 3,640‑square‑foot commercial building on 0.5236 acres; Retail or restaurant use identified for the building; Just off I‑65 Exit 322 in Falkville