Birmingham Industrial Flex
For Sale
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2112 3rd Ave S, Birmingham, AL 35233
5,886 SF industrial property in Birmingham, Alabama for sale.
Property Size5,886 SF
Price / SF$169.89
Days on Market650
Property Features for 2112 3rd Ave S
General Information
Standard status
Active
Size
5,886 SF
Property subtype
Industrial, Mixed Use
Zoning
M-1
Building Details
Year Built
1910
Stories
1
Listing Agency:
ACRE Real Estate Partners
Listed By:
Walter Kelley · License #345079
Source:
Crexi
Added: Oct 29, 2024
Changed: Aug 7
Last Checked: Aug 7 at 8:05AM
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 ACRE Real Estate Partners
Investment Insights
Based on property information with market context.
This 5,886 SF property, constructed in 1910, is located in the Birmingham area. Zoned M1, this industrial site offers flexible usage. The location provides access to transportation routes, enhancing operational efficiency for industrial, warehouse, and distribution endeavors. This property presents an opportunity for investors in a growing district.
Key Highlights
- 5,886 SF building in the thriving Birmingham area.
- Zoned M1 for flexible usage (Industrial, Warehouse, and Distribution).
- Strategic location with easy access to key transportation routes.
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
$57,205
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
5.72%
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%
$1,144,100
$1.1M
Cap Rate 7%
$817,214
$817.2K
Cap Rate 9%
$635,611
$635.6K
Market Conditions
NOI Build-Up for 5,886 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
$98.9K $16.80/SF
− Vacancy
−$10.9K −$1.85/SF
EGI
$88.0K $14.95/SF
− OpEx
−$30.8K −$5.23/SF
NOI
$57.2K $9.72/SF
Area
Birmingham, AL
Vacancy
11.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
35.00%
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%
$1,144,100
Cap Rate 7%
$817,214
Cap Rate 9%
$635,611
Alternative Uses
Best Use
Flex RnD
$817.2K
$715.1K – $953.4K
NOI $57,205 @ 7.0% cap · market cap 5.72%
Second Best
Warehouse
$469.3K
$410.7K – $547.5K
NOI $32,852 @ 7.0% cap · market cap 3.29%
Theoretical Best
Office A
$1.38M
$1.21M – $1.61M
NOI $96,709 @ 7.0% cap · market cap 9.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,290
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35233, AL
2,588
Population
2,710
Households
1
Avg Household Size
27
Median Age
90%
College-Educated
99%
High-School Grad
1.5 sq mi
ZIP Area
1,725
Density / Sq Mi
$52,207
Median Household Income
$48,750
Median Earnings
$1,526
Median Rent
$332,100
Median Home Value
Market
Vacancy Rate% for Industrial in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - 5,886 SF industrial property in Birmingham, Alabama for sale.
Where is this flex space located?
The property is located at 2112 3rd Ave S Birmingham, AL.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: 5,886 SF building in the thriving Birmingham area.; Zoned M1 for flexible usage (Industrial, Warehouse, and Distribution).; Strategic location with easy access to key transportation routes.
