Three-Story Brick Office
For Sale
$1,950,000
905 Old Montgomery Highway, Vestavia Hills, AL 35216
Three-story, multi-tenant office building with elevator, side stairwells, and on-site covered porch and parking.
Property Size10,000 SF
Price / SF$195
Days on Market48
Property Features for 905 Old Montgomery Highway
General Information
Standard status
Active
Size
10,000 SF
Total Parking Spaces
24
Property subtype
Office
Zoning
O-1
Building Details
Building Size
10,000 SF
Year Built
2006
Stories
3
Tenancy
Multi
Listed By:
Matt Gilchrist, SIOR
(205) 871-7100
Source:
Grahamcompany
Added: Jul 17
Changed: Aug 18
Last Checked: Sep 1 at 2:56PM
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 Matt Gilchrist, SIOR
Investment Insights
Based on property information with market context.
This 3-story brick office building was built in 2006 and is currently configured as a multi-tenant property for approximately 2–3 tenants. The layout includes a front foyer with elevator service as well as side stairwells, with a small kitchen/break room on each floor.
The building is situated on a corner with entrances from Old Montgomery Highway and Georgia Avenue. Covered porch area and large surface parking are provided, including 24 parking spaces with handicapped parking. Monument signage is also noted on the property. The property is zoned O-1 (Office Park District).
The facility is presented as a practical office configuration with on-floor break areas, core elevator access, and dedicated parking for on-site use.
The building is situated on a corner with entrances from Old Montgomery Highway and Georgia Avenue. Covered porch area and large surface parking are provided, including 24 parking spaces with handicapped parking. Monument signage is also noted on the property. The property is zoned O-1 (Office Park District).
The facility is presented as a practical office configuration with on-floor break areas, core elevator access, and dedicated parking for on-site use.
Key Highlights
- 3‑story brick office building with monument signage, built in 2006
- 10,000 SF multi‑tenant office building configured for 2–3 tenants
- Front foyer access with elevator plus side stairwells
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
$105,300
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
5.40%
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%
$2,106,000
$2.1M
Cap Rate 7%
$1,504,286
$1.5M
Cap Rate 9%
$1,170,000
$1.2M
Market Conditions
NOI Build-Up for 10,000 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
$180.0K $18.00/SF
− Vacancy
−$39.6K −$3.96/SF
EGI
$140.4K $14.04/SF
− OpEx
−$35.1K −$3.51/SF
NOI
$105.3K $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%
$2,106,000
Cap Rate 7%
$1,504,286
Cap Rate 9%
$1,170,000
Alternative Uses
Best Use
Office B
$1.50M
$1.32M – $1.76M
NOI $105,300 @ 7.0% cap · market cap 5.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.35M
$2.05M – $2.74M
NOI $164,304 @ 7.0% cap · market cap 8.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,281
Businesses Nearby
Explore this area
Business Placement
Demographics for 35216, AL
36,673
Population
16,333
Households
2.2
Avg Household Size
35
Median Age
53%
College-Educated
94%
High-School Grad
13.0 sq mi
ZIP Area
2,821
Density / Sq Mi
$73,125
Median Household Income
$42,767
Median Earnings
$1,314
Median Rent
$376,200
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?
Office building - Three-story, multi-tenant office building with elevator, side stairwells, and on-site covered porch and parking.
Where is this office building located?
The property is located at 905 Old Montgomery Highway Vestavia Hills, AL.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: 3‑story brick office building with monument signage, built in 2006; 10,000 SF multi‑tenant office building configured for 2–3 tenants; Front foyer access with elevator plus side stairwells
