Flex Space with Covered
For Sale
$675,000
7159 S Hwy 231, Dothan, AL 36301
Commercial Sale, Dothan, AL
Property Size6,250 SF
Lot Size4.00 Acres
Price / SF$108
Days on Market26
Property Features for 7159 S Hwy 231
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
9c Houston SE 84 E-231 S
Standard status
Active
APN
38-17-07-26-0-000-001-004
Lot size
4.00 Acres
Amenities
office spaces
VCT flooring
restrooms
kitchen area
covered shop/bay areas
Building Details
Year built
1992
Floors in Building
1
Listing Agency:
AXEN Realty, LLC
(205) 887-5669
Listed By:
Mike Pierce · License #90551
(334) 339-6674
Added: Aug 6
Changed: Aug 27
Last Checked: Aug 31 at 12:06PM
MLS# 214191
Copyright © 2026 Southeast Alabama Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This flex-space property contains 6,250+ total sqft on a 4-acre site. The interior includes up to 6 office spaces, VCT flooring, three restrooms, and a kitchen area. Covered shop and bay areas add functional space for operations, storage, or service-related activity. Built in 1992, the property is currently home to Discount RV Sales.
Located at 7159 S Hwy 231 in Dothan, the property fronts Hwy 231 South and includes a southbound turn lane. Traffic is reported at approximately 17,000 vehicles per day (AADT), providing direct exposure along the corridor. The combination of office improvements, covered bay areas, and sizable land area supports a range of commercial configurations.
Located at 7159 S Hwy 231 in Dothan, the property fronts Hwy 231 South and includes a southbound turn lane. Traffic is reported at approximately 17,000 vehicles per day (AADT), providing direct exposure along the corridor. The combination of office improvements, covered bay areas, and sizable land area supports a range of commercial configurations.
Key Highlights
- 6,250+ total sqft of flex space on 4 acres
- Up to 6 office spaces with VCT flooring
- Three restrooms and a kitchen area
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
$48,136
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
7.13%
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%
$962,720
$962.7K
Cap Rate 7%
$687,657
$687.7K
Cap Rate 9%
$534,844
$534.8K
Market Conditions
NOI Build-Up for 6,250 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
$78.8K $12.60/SF
− Vacancy
−$14.6K −$2.33/SF
EGI
$64.2K $10.27/SF
− OpEx
−$16.0K −$2.57/SF
NOI
$48.1K $7.70/SF
Area
Houston County, AL
Vacancy
18.50%
Lease Rate
$12.60 /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%
$962,720
Cap Rate 7%
$687,657
Cap Rate 9%
$534,844
Alternative Uses
Best Use
Office B
$687.7K
$601.7K – $802.3K
NOI $48,136 @ 7.0% cap · market cap 7.13%
Second Best
Flex RnD
$508.7K
$445.1K – $593.5K
NOI $35,607 @ 7.0% cap · market cap 5.28%
Theoretical Best
Healthcare Medical
$1.10M
$966.6K – $1.29M
NOI $77,328 @ 7.0% cap · market cap 11.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
17,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
27
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36301, AL
38,447
Population
17,872
Households
2.2
Avg Household Size
40
Median Age
18%
College-Educated
85%
High-School Grad
89.2 sq mi
ZIP Area
431
Density / Sq Mi
$49,124
Median Household Income
$35,333
Median Earnings
$886
Median Rent
$156,100
Median Home Value
Market
Vacancy Rate% for Office 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?
Flex space - The building combines office areas, a kitchen, restrooms, and covered shop areas.
Where is this flex space located?
The property is located at 7159 S Hwy 231 Dothan, AL.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: 6,250+ total sqft of flex space on 4 acres; Up to 6 office spaces with VCT flooring; Three restrooms and a kitchen area
