Retail Storefront with Rear
For Sale
$375,000
8607 New Watermelon Road, Tuscaloosa, AL 35406
CommercialSale, Tuscaloosa, AL
Property Size936 SF
Lot Size0.34 Acres
Price / SF$400.64
Days on Market8
Property Features for 8607 New Watermelon Road
General Information
Property type
Commercial Sale
Property subtype
Retail
Directions
Take New Watermelon Road past North River Yacht Club entrance. Turn left at the stop sign, property is 1/2 mile on the right across from golf course.
Subdivision
(01) North of the River City
Standard status
Active
APN
21-04-20-1-001-002.000
Size
936 SF
Lot size
0.34 Acres
Taxes and HOA fees
Tax Description
Beg Inter E Line Watermelon Road & N Sec Line S20 T20 R9, Se 420' (S) With Rd To Pob, E 159', S 189' To Rd, Nw 250' With Rd To Pob.
Tax Annual Amount
261
Legal Description
Beg Inter E Line Watermelon Road & N Sec Line S20 T20 R9, Se 420' (S) With Rd To Pob, E 159', S 189' To Rd, Nw 250' With Rd To Pob.
Building Details
Number of units
1
Flooring type
Concrete
Building materials
Block
Roof type
Composition, Shingle
Listing Agency:
Keller Williams Tuscaloosa · Keller Williams Realty
(205) 759-3400
Listed By:
Lee Foster · License #0001282800
(205) 657-1997
Added: Aug 17
Changed: Aug 22
Last Checked: Aug 24 at 9:06PM
MLS# 176988
Copyright © 2026 West Alabama Multiple Listing Service. 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 retail storefront contains 936 square feet on a 0.34-acre parcel at 8607 New Watermelon Road in Tuscaloosa, Alabama. The building uses block construction, concrete flooring, and a shingle and composition roof system.
A separate storage building is positioned at the rear of the property, and a mobile home is also included on site. The mobile home may be removed, creating the option for additional site use as described in the property information. The address is within ZIP Code 35406.
A separate storage building is positioned at the rear of the property, and a mobile home is also included on site. The mobile home may be removed, creating the option for additional site use as described in the property information. The address is within ZIP Code 35406.
Key Highlights
- 936 square feet of retail storefront space
- 0.34‑acre commercial parcel
- Rear storage building included
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
$10,511
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
2.80%
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%
$210,220
$210.2K
Cap Rate 7%
$150,157
$150.2K
Cap Rate 9%
$116,789
$116.8K
Market Conditions
NOI Build-Up for 936 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
$16.3K $17.40/SF
− Vacancy
−$1.3K −$1.36/SF
EGI
$15.0K $16.04/SF
− OpEx
−$4.5K −$4.81/SF
NOI
$10.5K $11.23/SF
Area
Tuscaloosa, AL
Vacancy
7.80%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
30.00%
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%
$210,220
Cap Rate 7%
$150,157
Cap Rate 9%
$116,789
Alternative Uses
Best Use
Retail
$150.2K
$131.4K – $175.2K
NOI $10,511 @ 7.0% cap · market cap 2.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$224.9K
$196.8K – $262.4K
NOI $15,745 @ 7.0% cap · market cap 4.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
33
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35406, AL
16,664
Population
8,291
Households
2
Avg Household Size
40
Median Age
68%
College-Educated
97%
High-School Grad
80.9 sq mi
ZIP Area
206
Density / Sq Mi
$118,736
Median Household Income
$68,810
Median Earnings
$1,352
Median Rent
$467,000
Median Home Value
Market
Vacancy Rate% for Retail 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?
Storefront property - The property includes a rear storage building and an additional mobile home on the commercial parcel.
Where is this storefront property located?
The property is located at 8607 New Watermelon Road Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: 936 square feet of retail storefront space; 0.34‑acre commercial parcel; Rear storage building included
