Highway Frontage Commercial
For Sale
Contact for pricing
7595 Hwy 72 W, Madison, AL 35758
Move-in-ready commercial building with passive income on Highway 72.
Property Size3,500 SF
Price / SF$312.86
Days on Market159
Property Features for 7595 Hwy 72 W
General Information
Standard status
Active
Size
3,500 SF
Class
C
Property subtype
Office
Listing Agency:
NEXCOMM Advisors
(256) 429-2599
Listed By:
Kelvin Mitchell · License #89312
Source:
Crexi
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 8 at 6:36AM
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 NEXCOMM Advisors
Investment Insights
Based on property information with market context.
This commercial property features two buildings. The first building at 7595 Hwy 72 is a 2,500 SF move-in-ready office building with designer finishes. The layout is built for productivity and client-facing professionalism. The property includes an active cell tower lease that conveys with the sale, providing a passive income stream. The second building at 7605 Hwy 72 offers 1,000 SF of commercial space with frontage on Highway 72. The site has a proven track record as an automobile dealership and is ideal for retail, service, and flex-use businesses. The property is positioned on Highway 72 with over 100 feet of frontage, offering visibility and access on one of North Alabama’s busiest commercial thoroughfares. The site’s established commercial zoning, generous lot frontage, and direct highway access create a blank canvas for an owner-user or investor. The combined property size is 3,500 SF.
Key Highlights
- Move‑in‑ready, designer‑finished commercial office building on Madison’s most sought‑after corridor (7595 Hwy 72).
- Active cell tower lease conveys with the sale, providing passive income (7595 Hwy 72).
- Over 100 feet of premium road frontage on Highway 72 for both properties.
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
$44,714
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
4.08%
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%
$894,280
$894.3K
Cap Rate 7%
$638,771
$638.8K
Cap Rate 9%
$496,822
$496.8K
Market Conditions
NOI Build-Up for 3,500 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
$70.1K $20.04/SF
− Vacancy
−$10.5K −$3.01/SF
EGI
$59.6K $17.03/SF
− OpEx
−$14.9K −$4.26/SF
NOI
$44.7K $12.78/SF
Area
Madison County, AL
Vacancy
15.00%
Lease Rate
$20.04 /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%
$894,280
Cap Rate 7%
$638,771
Cap Rate 9%
$496,822
Alternative Uses
Best Use
Office B
$638.8K
$558.9K – $745.2K
NOI $44,714 @ 7.0% cap · market cap 4.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$911.4K
$797.5K – $1.06M
NOI $63,798 @ 7.0% cap · market cap 5.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
67
Businesses Nearby
Explore this area
Business Placement
Demographics for 35758, AL
48,192
Population
20,322
Households
2.4
Avg Household Size
38
Median Age
64%
College-Educated
98%
High-School Grad
27.2 sq mi
ZIP Area
1,772
Density / Sq Mi
$115,780
Median Household Income
$61,321
Median Earnings
$1,375
Median Rent
$336,700
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?
Office building - Move-in-ready commercial building with passive income on Highway 72.
Where is this office building located?
The property is located at 7595 Hwy 72 W Madison, AL.
What is the asking price?
The asking price for this property is $1,095,000.
What are key features of this property?
This property features: Move‑in‑ready, designer‑finished commercial office building on Madison’s most sought‑after corridor (7595 Hwy 72).; Active cell tower lease conveys with the sale, providing passive income (7595 Hwy 72).; Over 100 feet of premium road frontage on Highway 72 for both properties.
