Prime Commercial Property on
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616 Gulf Shores Pkwy, Gulf Shores, AL
High-visibility property in Gulf Shores, steps from the coast.
Property Size6,839 SF
Lot Size0.30 Acres
Price / SF$219.33
Days on Market430
Property Features for 616 Gulf Shores Pkwy
General Information
Standard status
Active
Size
6,839 SF
Lot size
0.30 Acres
Property subtype
RETAIL
Listing Agency:
RE/MAX Paradise
(251) 979-0500
Listed By:
Robert Shallow · License #000013654-1
(251) 979-0500
Source:
Moodyscre
Added: Jun 16, 2025
Changed: Aug 8
Last Checked: Aug 8 at 5:00AM
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 RE/MAX Paradise
Investment Insights
Based on property information with market context.
This commercial property offers over 6,000 square feet of space on Highway 59 in Gulf Shores. Situated approximately half a mile north of the Gulf of America beaches, the property benefits from high visibility and steady traffic from locals and tourists year-round. Zoned BT-1-N (Tourist Business 1 North), the property is suitable for retail, hospitality, entertainment, or mixed-use concepts. This location presents a flexible opportunity for investors, entrepreneurs, or developers looking to expand their business footprint or invest in Gulf Shores real estate. Possible owner financing is available. Buyer to verify all information during due diligence.
Key Highlights
- Prime location on Highway 59 in Gulf Shores, AL, just half a mile from the beach.
- Boasting over 6,000 square feet of commercial space.
- High‑visibility property with year‑round traffic.
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
$73,590
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
4.91%
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%
$1,471,800
$1.5M
Cap Rate 7%
$1,051,286
$1.1M
Cap Rate 9%
$817,667
$817.7K
Market Conditions
NOI Build-Up for 6,839 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
$114.9K $16.80/SF
− Vacancy
−$9.8K −$1.43/SF
EGI
$105.1K $15.37/SF
− OpEx
−$31.5K −$4.61/SF
NOI
$73.6K $10.76/SF
Area
Baldwin County, AL
Vacancy
8.50%
Lease Rate
$16.80 /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%
$1,471,800
Cap Rate 7%
$1,051,286
Cap Rate 9%
$817,667
Alternative Uses
Best Use
Retail
$1.05M
$919.9K – $1.23M
NOI $73,590 @ 7.0% cap · market cap 4.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.64M
$1.44M – $1.92M
NOI $115,125 @ 7.0% cap · market cap 7.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
356
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Retail 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?
Retail property - High-visibility property in Gulf Shores, steps from the coast.
Where is this retail property located?
The property is located at 616 Gulf Shores Pkwy Gulf Shores, AL.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Prime location on Highway 59 in Gulf Shores, AL, just half a mile from the beach.; Boasting over 6,000 square feet of commercial space.; High‑visibility property with year‑round traffic.
