Southside Retail/Office
For Sale
Contact for pricing
2313 4th Ave S, Birmingham, AL 35233
Retail/office space with high visibility and traffic count.
Property Size3,644 SF
Price / SF$226.40
Days on Market794
Property Features for 2313 4th Ave S
General Information
Standard status
Active
Size
3,644 SF
Property subtype
Retail
Zoning
M-1
Building Details
Year Built
1989
Year Renovated
2020
Buildings
1
Stories
1
Units
1
Listing Agency:
Red Rock Realty Group
(205) 334-3283
Listed By:
Bud Ballard · License #AL 000105215
Source:
Crexi
Added: Jun 7, 2024
Changed: Aug 8
Last Checked: May 13 at 8:23PM
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 Red Rock Realty Group
Investment Insights
Based on property information with market context.
This 3,644-square-foot commercial property in Southside offers an excellent opportunity with high visibility on a main thoroughfare. The location benefits from monopole signage and a high traffic count. It is situated in close proximity to UAB Hospital, Children's Hospital, St. Vincent's Hospital, and other area healthcare facilities. The property is located two blocks from Red Mountain Expressway. The existing buildout includes a showroom, office space, and storage. The structure and location are suitable for a medicinal marijuana dispensary or medical use. A previous x-ray room features cinder block walls, making it suitable for a vault or safe room.
Key Highlights
- High‑visibility location on a main thoroughfare with monopole signage and high traffic count.
- Close proximity to UAB Hospital, Children's, St. Vincent's, and other healthcare facilities.
- Suitable for medicinal marijuana dispensary or other medical use.
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
$35,614
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
4.32%
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%
$712,280
$712.3K
Cap Rate 7%
$508,771
$508.8K
Cap Rate 9%
$395,711
$395.7K
Market Conditions
NOI Build-Up for 3,644 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
$56.8K $15.60/SF
− Vacancy
−$6.0K −$1.64/SF
EGI
$50.9K $13.96/SF
− OpEx
−$15.3K −$4.19/SF
NOI
$35.6K $9.77/SF
Area
Birmingham, AL
Vacancy
10.50%
Lease Rate
$15.60 /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%
$712,280
Cap Rate 7%
$508,771
Cap Rate 9%
$395,711
Alternative Uses
Best Use
Retail
$508.8K
$445.2K – $593.6K
NOI $35,614 @ 7.0% cap · market cap 4.32%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$855.3K
$748.4K – $997.9K
NOI $59,872 @ 7.0% cap · market cap 7.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
809
Businesses Nearby
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 Retail in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail/office space with high visibility and traffic count.
Where is this retail space located?
The property is located at 2313 4th Ave S Birmingham, AL.
What is the asking price?
The asking price for this property is $825,000.
What are key features of this property?
This property features: High‑visibility location on a main thoroughfare with monopole signage and high traffic count.; Close proximity to UAB Hospital, Children's, St. Vincent's, and other healthcare facilities.; Suitable for medicinal marijuana dispensary or other medical use.
