Two-Tenant
For Sale
$1,000,000
636 Stuart Ln, Pelham, AL 35124
Warehouse configured for single- or dual-occupancy use with industrial power and direct interstate access.
Property Size9,067 SF
Price / SF$110.29
Days on Market193
Property Features for 636 Stuart Ln
General Information
Standard status
Active
Size
9,067 SF
Property subtype
Warehouse
Warehouse & Industrial
Warehouse Space
9,067 SF
Power
400 amps
Three-Phase Power
Yes
Additional Details
Highway Access
Yes
Building Details
Building Size
9,067 SF
Year Built
1999
Listing Agency:
Red Rock Realty Group
(813) 309-2875
Listed By:
Trish Rushing, CCIM · License #AL104714
(813) 309-2875
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 29
Last Checked: Aug 29 at 2:19PM
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 Red Rock Realty Group
Investment Insights
Based on property information with market context.
This warehouse property in Pelham Industrial Park was built in 1999 and is arranged to support either one occupant or two separate users. The building includes two electric overhead doors measuring 14 by 13 feet, three-phase 400-amp power, and eaves ranging from 16 to 20 feet. Its layout can be divided for dual occupancy, providing flexibility for an owner-user or investor seeking a multi-tenant configuration.
Located at 636 Stuart Ln in Pelham, Alabama, the property offers access to the interstate and is immediately available. Its industrial park setting supports warehouse and distribution functions, while the existing loading and electrical infrastructure provide a practical foundation for operations.
Located at 636 Stuart Ln in Pelham, Alabama, the property offers access to the interstate and is immediately available. Its industrial park setting supports warehouse and distribution functions, while the existing loading and electrical infrastructure provide a practical foundation for operations.
Key Highlights
- Two electric overhead doors, each 14x13'
- 3phase 400amp power service
- 16‑20' eaves
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
$45,906
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
4.59%
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%
$918,120
$918.1K
Cap Rate 7%
$655,800
$655.8K
Cap Rate 9%
$510,067
$510.1K
Market Conditions
NOI Build-Up for 9,067 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
$59.5K $6.56/SF
− Vacancy
−$5.5K −$0.60/SF
EGI
$54.0K $5.96/SF
− OpEx
−$8.1K −$0.89/SF
NOI
$45.9K $5.06/SF
Area
Shelby County, AL
Vacancy
9.20%
Lease Rate
$6.56 /SF/Yr
Expense Ratio
15.00%
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%
$918,120
Cap Rate 7%
$655,800
Cap Rate 9%
$510,067
Alternative Uses
Best Use
Warehouse
$655.8K
$573.8K – $765.1K
NOI $45,906 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.13M
$1.86M – $2.48M
NOI $148,974 @ 7.0% cap · market cap 14.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
209
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35124, AL
25,667
Population
10,207
Households
2.5
Avg Household Size
40
Median Age
50%
College-Educated
95%
High-School Grad
42.6 sq mi
ZIP Area
603
Density / Sq Mi
$91,513
Median Household Income
$50,970
Median Earnings
$1,575
Median Rent
$282,600
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Warehouse configured for single- or dual-occupancy use with industrial power and direct interstate access.
Where is this warehouse located?
The property is located at 636 Stuart Ln Pelham, AL.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Two electric overhead doors, each 14x13'; 3phase 400amp power service; 16‑20' eaves
