Corner Lot Office & Retail
For Sale
$849,900
7 Florida Street, Mobile, AL 36607
Renovated building with 10' ceilings, multiple treatment/office rooms, and 45 parking spaces on a corner intersection.
Property Size5,600 SF
Price / SF$151.77
Days on Market114
Property Features for 7 Florida Street
General Information
Standard status
Active
Size
5,600 SF
Total Parking Spaces
45
Property subtype
Other
Financials
Cap Rate
7%
Business Included
Yes
Additional Details
Clear Height
10 ft
Amenities
3
Tile, Vinyl, Laminate, Carpet, Wood
Level
Level.
Building Details
Year Built
1953
Listing Agency:
Roberts Brothers, Inc Malbis
(251) 454-5830
Listed By:
Bill Hinton · License #31087
(251) 454-5830
Source:
Xome
Added: Apr 18
Changed: Aug 8
Last Checked: Aug 9 at 5:35AM
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 Roberts Brothers, Inc Malbis
Investment Insights
Based on property information with market context.
Renovated 5,500 sq. ft. building on a corner lot intersection of two major streets, currently used as a spa and beauty salon. The interior offers 10' ceilings, 3 powder rooms and 2 full baths, plus 15 rooms and 2 break rooms. All trade fixtures remain, and the floorplan can be reconfigured into offices.
The property is positioned for visibility and easy access at the intersection of two major streets with high traffic counts. Outside, there are 45 parking spaces.
Reported improvements include a roof replacement in 2019 and four HVAC systems installed in 2015 (per owner). The listing also notes a 7% cap rate; buyer to verify all information during due diligence.
Address: 7 S Florida Street, Mobile, AL 36607.
The property is positioned for visibility and easy access at the intersection of two major streets with high traffic counts. Outside, there are 45 parking spaces.
Reported improvements include a roof replacement in 2019 and four HVAC systems installed in 2015 (per owner). The listing also notes a 7% cap rate; buyer to verify all information during due diligence.
Address: 7 S Florida Street, Mobile, AL 36607.
Key Highlights
- Renovated 5,500 SF building on a corner lot at the intersection of 2 major streets with high traffic counts
- 10' ceilings with 15 rooms and 2 break rooms, plus 3 powder rooms and 2 full baths
- Spa/beauty salon use with trade fixtures included; floorplan can be reconfigured into offices
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
$77,855
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
9.16%
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%
$1,557,100
$1.6M
Cap Rate 7%
$1,112,214
$1.1M
Cap Rate 9%
$865,056
$865.1K
Market Conditions
NOI Build-Up for 5,600 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
$124.3K $22.20/SF
− Vacancy
−$20.5K −$3.66/SF
EGI
$103.8K $18.54/SF
− OpEx
−$26.0K −$4.63/SF
NOI
$77.9K $13.90/SF
Area
Mobile, AL
Vacancy
16.50%
Lease Rate
$22.20 /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%
$1,557,100
Cap Rate 7%
$1,112,214
Cap Rate 9%
$865,056
Alternative Uses
Best Use
Office B
$1.11M
$973.2K – $1.30M
NOI $77,855 @ 7.0% cap · market cap 9.16%
Second Best
Retail
$1.06M
$926.5K – $1.24M
NOI $74,123 @ 7.0% cap · market cap 8.72%
Theoretical Best
Office A
$1.42M
$1.25M – $1.66M
NOI $99,633 @ 7.0% cap · market cap 11.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
10 ft
Clear height
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
695
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36607, AL
6,264
Population
3,175
Households
2
Avg Household Size
44
Median Age
31%
College-Educated
87%
High-School Grad
3.0 sq mi
ZIP Area
2,088
Density / Sq Mi
$40,681
Median Household Income
$40,648
Median Earnings
$999
Median Rent
$125,000
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?
Spa & wellness property - Renovated building with 10' ceilings, multiple treatment/office rooms, and 45 parking spaces on a corner intersection.
Where is this spa & wellness property located?
The property is located at 7 Florida Street Mobile, AL.
What is the asking price?
The asking price for this property is $849,900.
What are key features of this property?
This property features: Renovated 5,500 SF building on a corner lot at the intersection of 2 major streets with high traffic counts; 10' ceilings with 15 rooms and 2 break rooms, plus 3 powder rooms and 2 full baths; Spa/beauty salon use with trade fixtures included; floorplan can be reconfigured into offices
