Renovated Second-Floor Office
For Sale
$90,000
Montgomery Hwy 3246, Dothan, AL 36303
Commercial Sale, Dothan, AL
Property Size400 SF
Price / SF$225
Days on Market342
Property Features for Montgomery Hwy 3246
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Sun Plaza
Standard status
Active
APN
0902102000025026
Building Details
Year built
1987
Floors in Building
2
Listing Agency:
Keller Williams Southeast Alabama · Keller Williams Realty
(334) 702-3595
Listed By:
Olivia Baldwin
(334) 803-1555
Added: Sep 24, 2025
Changed: Aug 19
Last Checked: Aug 31 at 11:06AM
MLS# 205327
Copyright © 2026 Southeast Alabama Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 400-square-foot office unit occupies the second floor of the Sun Plaza Complex in Dothan. The space includes new porcelain tile flooring, LED lighting, and plumbing, along with mirrors and a 3-year-old A/C unit. The property was built in 1987.
Located on Montgomery Hwy, the office is near shopping and eateries. Windows provide views from the second-floor setting, offering a defined workplace within an established commercial complex.
Located on Montgomery Hwy, the office is near shopping and eateries. Windows provide views from the second-floor setting, offering a defined workplace within an established commercial complex.
Key Highlights
- 400‑square‑foot office unit on the second floor
- New porcelain tile flooring and LED lighting
- New plumbing and mirrors
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
$3,081
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
3.42%
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%
$61,620
$61.6K
Cap Rate 7%
$44,014
$44.0K
Cap Rate 9%
$34,233
$34.2K
Market Conditions
NOI Build-Up for 400 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
$5.0K $12.60/SF
− Vacancy
−$932 −$2.33/SF
EGI
$4.1K $10.27/SF
− OpEx
−$1.0K −$2.57/SF
NOI
$3.1K $7.70/SF
Area
Houston County, AL
Vacancy
18.50%
Lease Rate
$12.60 /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%
$61,620
Cap Rate 7%
$44,014
Cap Rate 9%
$34,233
Alternative Uses
Best Use
Office B
$44.0K
$38.5K – $51.4K
NOI $3,081 @ 7.0% cap · market cap 3.42%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$70.7K
$61.9K – $82.5K
NOI $4,949 @ 7.0% cap · market cap 5.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
726
Businesses Nearby
Explore this area
Business Placement
Demographics for 36303, AL
31,080
Population
14,622
Households
2.1
Avg Household Size
39
Median Age
28%
College-Educated
88%
High-School Grad
58.9 sq mi
ZIP Area
528
Density / Sq Mi
$53,006
Median Household Income
$34,504
Median Earnings
$855
Median Rent
$175,600
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 units - Updated office unit in Sun Plaza Complex near shopping and eateries.
Where is this office units located?
The property is located at Montgomery Hwy 3246 Dothan, AL.
What is the asking price?
The asking price for this property is $90,000.
What are key features of this property?
This property features: 400‑square‑foot office unit on the second floor; New porcelain tile flooring and LED lighting; New plumbing and mirrors
