Community Business District Retail
For Sale
$150,000
612 6th SW Avenue, Alabaster, AL 35007
Commercially zoned space near Highway 119 and I-65, suited to retail, office, studio, and service-oriented uses.
Property Size1,215 SF
Price / SF$123.46
Days on Market122
Property Features for 612 6th SW Avenue
General Information
Standard status
Active
Size
1,215 SF
Property subtype
Commercial/Industrial
Zoning
B-3: Community Business District
Additional Details
Highway Access
Yes
Building Details
Year Built
1954
Listing Agency:
LAH Sotheby's International Realty Mountain Brook
(205) 451-9126
Listed By:
Vincent Carnaggio
(205) 451-9126
Source:
Exitrealty
Added: May 1
Changed: Aug 29
Last Checked: Aug 29 at 8:07PM
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 LAH Sotheby's International Realty Mountain Brook
Investment Insights
Based on property information with market context.
This retail space contains 1,215 SF within a building constructed in 1954. The property carries B-3 Community Business District zoning and is positioned for a range of commercial applications, including bakery, brewpub, barber shop, photography studio, professional office, medical or dental practice, catering operation, and retail use.
Highway 119 is approximately one minute away, while I-65 can be reached in about five minutes. The surrounding area includes restaurants, bars, and shopping centers, creating a commercial setting for customers, clients, and employees. The address is 612 6th SW Avenue in Alabaster, Alabama.
Highway 119 is approximately one minute away, while I-65 can be reached in about five minutes. The surrounding area includes restaurants, bars, and shopping centers, creating a commercial setting for customers, clients, and employees. The address is 612 6th SW Avenue in Alabaster, Alabama.
Key Highlights
- 1,215 SF retail space in a 1954 building
- B‑3 Community Business District zoning
- Approximately 1 minute from Highway 119
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
$12,794
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
8.53%
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%
$255,880
$255.9K
Cap Rate 7%
$182,771
$182.8K
Cap Rate 9%
$142,156
$142.2K
Market Conditions
NOI Build-Up for 1,215 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
$21.9K $18.00/SF
− Vacancy
−$4.8K −$3.96/SF
EGI
$17.1K $14.04/SF
− OpEx
−$4.3K −$3.51/SF
NOI
$12.8K $10.53/SF
Area
Shelby County, AL
Vacancy
22.00%
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%
$255,880
Cap Rate 7%
$182,771
Cap Rate 9%
$142,156
Alternative Uses
Best Use
Office B
$182.8K
$159.9K – $213.2K
NOI $12,794 @ 7.0% cap · market cap 8.53%
Second Best
Retail
$163.5K
$143.0K – $190.7K
NOI $11,443 @ 7.0% cap · market cap 7.63%
Theoretical Best
Office A
$285.2K
$249.5K – $332.7K
NOI $19,963 @ 7.0% cap · market cap 13.31%
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
609
Businesses Nearby
Explore this area
Business Placement
Demographics for 35007, AL
28,274
Population
10,634
Households
2.7
Avg Household Size
38
Median Age
38%
College-Educated
92%
High-School Grad
39.0 sq mi
ZIP Area
725
Density / Sq Mi
$86,994
Median Household Income
$47,572
Median Earnings
$1,348
Median Rent
$231,800
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?
Retail space - Commercially zoned space near Highway 119 and I-65, suited to retail, office, studio, and service-oriented uses.
Where is this retail space located?
The property is located at 612 6th SW Avenue Alabaster, AL.
What is the asking price?
The asking price for this property is $150,000.
What are key features of this property?
This property features: 1,215 SF retail space in a 1954 building; B‑3 Community Business District zoning; Approximately 1 minute from Highway 119
