Huntsville Office/Flex Building For
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8213 Stephanie Dr SW, Huntsville, AL 35802
Value-add office/flex building with shop, near Redstone Arsenal.
Property Size7,435 SF
Price / SF$83.32
Days on Market157
Property Features for 8213 Stephanie Dr SW
General Information
Standard status
Active
Size
7,435 SF
Class
C
Property subtype
Industrial, Office
Zoning
C1
Lease Type
Modified Gross
Investment Type
Value Add
Building Details
Year Built
1981
Year Renovated
2025
Buildings
2
Stories
1
Units
1
Listing Agency:
Keller Williams Realty Huntsville
Listed By:
Donna Lamb · License #AL000026884
Source:
Crexi
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 6:42AM
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 Keller Williams Realty Huntsville
Investment Insights
Based on property information with market context.
Located off South Memorial Parkway and Lilly Flagg in Huntsville, Alabama, the property at 8213 Stephanie Drive offers convenient access to Interstate 565 and proximity to the Martin Road Gate at Redstone Arsenal, which is four miles away. Constructed in 1981, this building provides a functional exterior with three separate entrances. The heated and air-conditioned main building features numerous offices in the front and an open workspace with an overhead door in the rear. The building, serviced by three HVAC units, can accommodate four separate divisions and includes a mix of office and conference room space, several restrooms (one handicap accessible), a kitchenette, and at least one handicapped-accessible reception area. Additionally, there is a separate shop building in the rear, approximately 1200 square feet, suitable for storage or vehicle parking, or demolition for additional parking. Zoned C1, the building is suitable for print shops, office and inside storage for contractors, or multi-tenant refitting. The property size is approximately 7435 square feet. All measurements are approximate.
Key Highlights
- Convenient access to Interstate 565 and proximity to Redstone Arsenal's Martin Road Gate (4 miles).
- Functional office building with three separate entrances, suitable for multiple divisions.
- Versatile space with a mix of offices, open workspace, conference rooms, and restrooms (including handicap accessible).
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
$53,499
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
8.64%
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%
$1,069,980
$1.1M
Cap Rate 7%
$764,271
$764.3K
Cap Rate 9%
$594,433
$594.4K
Market Conditions
NOI Build-Up for 7,435 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
$66.9K $9.00/SF
− Vacancy
−$4.0K −$0.53/SF
EGI
$62.9K $8.47/SF
− OpEx
−$9.4K −$1.27/SF
NOI
$53.5K $7.20/SF
Area
Huntsville, AL
Vacancy
5.94%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
15.00%
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%
$1,069,980
Cap Rate 7%
$764,271
Cap Rate 9%
$594,433
Alternative Uses
Best Use
Office B
$1.36M
$1.19M – $1.58M
NOI $94,986 @ 7.0% cap · market cap 15.33%
Second Best
Flex RnD
$1.14M
$1.00M – $1.33M
NOI $80,030 @ 7.0% cap · market cap 12.92%
Theoretical Best
Office A
$1.94M
$1.69M – $2.26M
NOI $135,525 @ 7.0% cap · market cap 21.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
464
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35802, AL
23,842
Population
12,359
Households
1.9
Avg Household Size
44
Median Age
51%
College-Educated
95%
High-School Grad
16.4 sq mi
ZIP Area
1,454
Density / Sq Mi
$72,195
Median Household Income
$46,938
Median Earnings
$1,051
Median Rent
$319,900
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?
Flex space - Value-add office/flex building with shop, near Redstone Arsenal.
Where is this flex space located?
The property is located at 8213 Stephanie Dr SW Huntsville, AL.
What is the asking price?
The asking price for this property is $619,500.
What are key features of this property?
This property features: Convenient access to Interstate 565 and proximity to Redstone Arsenal's Martin Road Gate (4 miles).; Functional office building with three separate entrances, suitable for multiple divisions.; Versatile space with a mix of offices, open workspace, conference rooms, and restrooms (including handicap accessible).
