Highway Frontage Commercial
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2127 Old Montgomery Hwy, Pelham, AL 35124
3,216 SF building on 0.43 acres near Hoover/Pelham border.
Property Size3,216 SF
Lot Size0.43 Acres
Price / SF$124.07
Days on Market1094
Property Features for 2127 Old Montgomery Hwy
General Information
Standard status
Active
Size
3,216 SF
Lot size
0.43 Acres
Property subtype
Office
Listing Agency:
LAH Commercial Real Estate Mountain Brook
Listed By:
Austin Blair · License #AL 000075950
(205) 478-7805
Source:
Crexi
Added: Sep 8, 2023
Changed: Aug 18
Last Checked: Sep 4 at 5:05AM
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 LAH Commercial Real Estate Mountain Brook
Investment Insights
Based on property information with market context.
This 3,216 square foot building is situated on a 0.43 acre site. The property is located directly on Highway 31 (Pelham Parkway) near the Hoover/Pelham border, offering access to both Pelham Parkway and Old Montgomery Highway. The location benefits from a combined traffic count of 28,981 vehicles per day. Formerly a veterinary clinic, the building is suitable for various uses including medical, office, retail, and salon purposes.
Key Highlights
- Excellent location directly on Hwy 31 (Pelham Pkwy) near the Hoover/Pelham border.
- High traffic count: 28,981 VPD (combined).
- Building size: 3,216 SF +/-.
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
$33,864
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
8.49%
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%
$677,280
$677.3K
Cap Rate 7%
$483,771
$483.8K
Cap Rate 9%
$376,267
$376.3K
Market Conditions
NOI Build-Up for 3,216 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
$57.9K $18.00/SF
− Vacancy
−$12.7K −$3.96/SF
EGI
$45.2K $14.04/SF
− OpEx
−$11.3K −$3.51/SF
NOI
$33.9K $10.53/SF
Area
Shelby County, AL
Vacancy
22.00%
Lease Rate
$18.00 /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%
$677,280
Cap Rate 7%
$483,771
Cap Rate 9%
$376,267
Alternative Uses
Best Use
Office B
$483.8K
$423.3K – $564.4K
NOI $33,864 @ 7.0% cap · market cap 8.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$754.9K
$660.5K – $880.7K
NOI $52,840 @ 7.0% cap · market cap 13.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,252
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35124, AL
25,667
Population
10,207
Households
2.5
Avg Household Size
40
Median Age
50%
College-Educated
95%
High-School Grad
42.6 sq mi
ZIP Area
603
Density / Sq Mi
$91,513
Median Household Income
$50,970
Median Earnings
$1,575
Median Rent
$282,600
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.
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Frequently Asked Questions
What type of property is this?
Office space - 3,216 SF building on 0.43 acres near Hoover/Pelham border.
Where is this office space located?
The property is located at 2127 Old Montgomery Hwy Pelham, AL.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: Excellent location directly on Hwy 31 (Pelham Pkwy) near the Hoover/Pelham border.; High traffic count: 28,981 VPD (combined).; Building size: 3,216 SF +/-.
