Live-Work Space with
For Sale
Contact for pricing
7805 Terry Dr, Mobile, AL 36695
B-2 zoned live-work space currently operating as a salon with separate office and a one-bedroom layout.
Property Size1,200 SF
Price / SF$241.58
Days on Market49
Property Features for 7805 Terry Dr
General Information
Standard status
Active
Size
1,200 SF
Property subtype
SPECIALTY
Zoning
B-2
Additional Details
Road Access
Yes
Listing Agency:
RE/MAX Realty Professionals
(251) 661-1471
Listed By:
Tiffany Moore · License #000114394-0
Source:
Moodyscre
Added: Jul 1
Changed: Aug 8
Last Checked: Aug 8 at 10:59AM
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 Realty Professionals
Investment Insights
Based on property information with market context.
This live-work space is a 1,200 SF B-2 zoned property set up as a one-bedroom layout with a kitchen and living area, along with a separate salon/office. It is currently operating as a salon, which can support continued use for a spa or wellness-oriented business and also provides a practical setup for owner-occupancy.
Located in west Mobile near the Cottage Hill/Schillinger intersection, the property is positioned for visibility from a high-traffic area with busy road access. The lot is described as spacious and offers room to add additional parking, which may be helpful for improving customer parking as needs change.
With its established salon/office configuration and B-2 zoning, the building offers flexibility for related spa, office, or retail uses, whether maintained as-is or adapted for a tenant or an owner-operated business.
Located in west Mobile near the Cottage Hill/Schillinger intersection, the property is positioned for visibility from a high-traffic area with busy road access. The lot is described as spacious and offers room to add additional parking, which may be helpful for improving customer parking as needs change.
With its established salon/office configuration and B-2 zoning, the building offers flexibility for related spa, office, or retail uses, whether maintained as-is or adapted for a tenant or an owner-operated business.
Key Highlights
- 1,200 SF live‑work space with one‑bedroom layout
- B‑2 zoned property with salon/office configuration
- Separate salon/office 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
$16,683
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
5.75%
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%
$333,660
$333.7K
Cap Rate 7%
$238,329
$238.3K
Cap Rate 9%
$185,367
$185.4K
Market Conditions
NOI Build-Up for 1,200 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
$26.6K $22.20/SF
− Vacancy
−$4.4K −$3.66/SF
EGI
$22.2K $18.54/SF
− OpEx
−$5.6K −$4.63/SF
NOI
$16.7K $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%
$333,660
Cap Rate 7%
$238,329
Cap Rate 9%
$185,367
Alternative Uses
Best Use
Office B
$238.3K
$208.5K – $278.1K
NOI $16,683 @ 7.0% cap · market cap 5.75%
Second Best
Mixed Use
$228.2K
$199.6K – $266.2K
NOI $15,971 @ 7.0% cap · market cap 5.51%
Theoretical Best
Office A
$305.0K
$266.9K – $355.8K
NOI $21,350 @ 7.0% cap · market cap 7.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
132
Businesses Nearby
Explore this area
Business Placement
Demographics for 36695, AL
51,174
Population
21,269
Households
2.4
Avg Household Size
38
Median Age
34%
College-Educated
95%
High-School Grad
45.6 sq mi
ZIP Area
1,122
Density / Sq Mi
$75,236
Median Household Income
$47,614
Median Earnings
$1,192
Median Rent
$234,200
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?
Live-work space - B-2 zoned live-work space currently operating as a salon with separate office and a one-bedroom layout.
Where is this live-work space located?
The property is located at 7805 Terry Dr Mobile, AL.
What is the asking price?
The asking price for this property is $289,900.
What are key features of this property?
This property features: 1,200 SF live‑work space with one‑bedroom layout; B‑2 zoned property with salon/office configuration; Separate salon/office area
