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960 Lagoon Business Loop, Montgomery, AL 36109
Industrial properties
Property Size15,625 SF
Price / SF$143.10
Days on Market1102
Property Features for 960 Lagoon Business Loop
General Information
Standard status
Active
Size
15,625 SF
Class
A
Total Parking Spaces
20
Property subtype
Industrial, Mixed Use, Retail
Zoning
M-1
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$123,000
Building Details
Year Built
2008
Year Renovated
2019
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Leitman-Perlman, Inc
(205) 803-3000
Listed By:
Marc Perlman · License #AL 000047562
Source:
Crexi
Added: Aug 26, 2023
Changed: Aug 8
Last Checked: Aug 28 at 11:36PM
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 Leitman-Perlman, Inc
Investment Insights
Based on property information with market context.
Key Highlights
- National credit tenant provides stable income on a corporate NNN lease.
- Price reduced to $2,236,000.
- Lease extends until March 31, 2028.
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
$181,041
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
8.10%
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%
$3,620,820
$3.6M
Cap Rate 7%
$2,586,300
$2.6M
Cap Rate 9%
$2,011,567
$2.0M
Market Conditions
NOI Build-Up for 15,625 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
$277.5K $17.76/SF
− Vacancy
−$18.9K −$1.21/SF
EGI
$258.6K $16.55/SF
− OpEx
−$77.6K −$4.97/SF
NOI
$181.0K $11.59/SF
Area
Montgomery, AL
Vacancy
6.80%
Lease Rate
$17.76 /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%
$3,620,820
Cap Rate 7%
$2,586,300
Cap Rate 9%
$2,011,567
Alternative Uses
Best Use
Industrial
$2.59M
$2.26M – $3.02M
NOI $181,041 @ 7.0% cap · market cap 8.10%
Second Best
Mixed Use
$2.36M
$2.06M – $2.75M
NOI $165,000 @ 7.0% cap · market cap 7.38%
Theoretical Best
Office A
$3.24M
$2.84M – $3.78M
NOI $226,800 @ 7.0% cap · market cap 10.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
379
Businesses Nearby
Explore this area
Business Placement
Demographics for 36109, AL
24,176
Population
11,273
Households
2.1
Avg Household Size
41
Median Age
30%
College-Educated
92%
High-School Grad
11.3 sq mi
ZIP Area
2,139
Density / Sq Mi
$61,059
Median Household Income
$37,876
Median Earnings
$1,108
Median Rent
$134,900
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
Where is this industrial property located?
The property is located at 960 Lagoon Business Loop Montgomery, AL.
What is the asking price?
The asking price for this property is $2,236,000.
What are key features of this property?
This property features: National credit tenant provides stable income on a corporate NNN lease.; Price reduced to $2,236,000.; Lease extends until March 31, 2028.
