Live-Work Space with Salon
For Sale
$289,900
7805 Terry Drive, Mobile, AL 36695
Commercial Sale, Mobile, AL
Property Size1,204 SF
Lot Size0.45 Acres
Price / SF$240.78
Days on Market95
Property Features for 7805 Terry Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Comm
Parking
3
Parking features
Parking Lot
Window features
Double Pane Windows
Interior features
High Ceilings 9 ft Lower
Accessibility
Accessible Approach with Ramp
Lot features
Level
Standard status
Active
Size
1,204 SF
Lot size
0.45 Acres
Taxes and HOA fees
Tax Annual Amount
1306
Utilities
Utilities
Cable Available
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1975
Floors in Building
1
Flooring type
Tile - Ceramic
Building materials
Brick 4 Sides
Additional Structures
Storage
Listing Agency:
RE/MAX Realty Professionals · RE/MAX International
(251) 661-1471
Listed By:
Tiffany Moore · License #000114394-0
(251) 423-0458
Added: Jul 2
Changed: Sep 5
Last Checked: Oct 4 at 5:06AM
MLS# 7798737
Copyright © 2026 Mobile Area 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 1,204-square-foot live-work property in Mobile includes a one-bedroom layout with a kitchen and living area. The building currently operates as a salon and features ceramic tile flooring, 9-foot lower-level ceilings, four-sided brick construction, central heating, and central air. A parking lot and ramped approach are also provided.
The property occupies 0.4454 acres near the Cottage Hill and Schillinger intersection in West Mobile. Public water and sewer serve the site, and cable service is available. Built in 1975, the property combines a commercial building layout with residential-style interior components that support continued owner-occupant or business use.
The property occupies 0.4454 acres near the Cottage Hill and Schillinger intersection in West Mobile. Public water and sewer serve the site, and cable service is available. Built in 1975, the property combines a commercial building layout with residential-style interior components that support continued owner-occupant or business use.
Key Highlights
- 1,204‑square‑foot live‑work property
- 0.4454‑acre lot near Cottage Hill and Schillinger
- Current salon operation with one‑bedroom layout
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
$16,739
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
5.77%
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%
$334,780
$334.8K
Cap Rate 7%
$239,129
$239.1K
Cap Rate 9%
$185,989
$186.0K
Market Conditions
NOI Build-Up for 1,204 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
$26.7K $22.20/SF
− Vacancy
−$4.4K −$3.66/SF
EGI
$22.3K $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%
$334,780
Cap Rate 7%
$239,129
Cap Rate 9%
$185,989
Alternative Uses
Best Use
Office B
$239.1K
$209.2K – $279.0K
NOI $16,739 @ 7.0% cap · market cap 5.77%
Second Best
Mixed Use
$228.9K
$200.3K – $267.1K
NOI $16,024 @ 7.0% cap · market cap 5.53%
Theoretical Best
Office A
$306.0K
$267.8K – $357.0K
NOI $21,421 @ 7.0% cap · market cap 7.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
125
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Live-work space - Commercial property with a one-bedroom configuration, kitchen, living area, parking lot, and accessible ramp approach.
Where is this live-work space located?
The property is located at 7805 Terry Drive 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: 1,204‑square‑foot live‑work property; 0.4454‑acre lot near Cottage Hill and Schillinger; Current salon operation with one‑bedroom layout
