Downtown Tuscaloosa Retail/Office
For Sale
Contact for pricing
2531 University Blvd, Tuscaloosa, AL 35401
Retail or office condo in downtown mixed-use development.
Property Size785 SF
Price / SF$235.54
Days on Market879
Property Features for 2531 University Blvd
General Information
Standard status
Active
Size
785 SF
Class
A
Property subtype
Retail
Building Details
Units
1
Listing Agency:
PGA Realty, LLC
Listed By:
Patrick Agee · License #AL 0000747900
(205) 345-0116
Source:
Crexi
Added: Apr 9, 2024
Changed: Sep 1
Last Checked: Aug 31 at 11:22PM
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 PGA Realty, LLC
Investment Insights
Based on property information with market context.
This is an opportunity to own a commercial space in Downtown Tuscaloosa. The property is a ground floor retail or office condominium located in a mixed-use development. The space is a cold shell, allowing for customization of mechanical, electrical, and plumbing systems. The unit is approximately 785 square feet. The owners association manages exterior maintenance.
Key Highlights
- Rare opportunity to own commercial property in Downtown Tuscaloosa.
- Ground floor retail/office condo in a mixed‑use development.
- Customizable space: cold shell allows for flexible MEP placement.
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
$8,816
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
4.77%
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%
$176,320
$176.3K
Cap Rate 7%
$125,943
$125.9K
Cap Rate 9%
$97,956
$98.0K
Market Conditions
NOI Build-Up for 785 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
$13.7K $17.40/SF
− Vacancy
−$1.1K −$1.36/SF
EGI
$12.6K $16.04/SF
− OpEx
−$3.8K −$4.81/SF
NOI
$8.8K $11.23/SF
Area
Tuscaloosa, AL
Vacancy
7.80%
Lease Rate
$17.40 /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%
$176,320
Cap Rate 7%
$125,943
Cap Rate 9%
$97,956
Alternative Uses
Best Use
Retail
$125.9K
$110.2K – $146.9K
NOI $8,816 @ 7.0% cap · market cap 4.77%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$188.6K
$165.1K – $220.1K
NOI $13,205 @ 7.0% cap · market cap 7.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,690
Businesses Nearby
132k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 73%
Hotels & Casinos 14%
Shops & Services 14%
Half Shell Oyster House
Dining
15,296 visits/mo
0.2 miles
Hardee's
Dining
13,763 visits/mo
0.4 miles
Dunkin' Donuts
Dining
13,381 visits/mo
0.3 miles
Burger King
Dining
12,540 visits/mo
0.4 miles
Taco Bell
Dining
12,264 visits/mo
0.3 miles
Demographics for 35401, AL
41,852
Population
19,517
Households
2.1
Avg Household Size
26
Median Age
27%
College-Educated
85%
High-School Grad
40.1 sq mi
ZIP Area
1,044
Density / Sq Mi
$30,031
Median Household Income
$13,041
Median Earnings
$911
Median Rent
$141,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Retail or office condo in downtown mixed-use development.
Where is this retail space located?
The property is located at 2531 University Blvd Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $184,900.
What are key features of this property?
This property features: Rare opportunity to own commercial property in Downtown Tuscaloosa.; Ground floor retail/office condo in a mixed‑use development.; Customizable space: cold shell allows for flexible MEP placement.
