Fenced Flex Space
For Sale
$1,650,000
Pending
1245/1251 Montvue Road, Kingsport, TN 37663
COMMERCIAL - Kingsport, TN
Property Size12,500 SF
Lot Size6.19 Acres
Days on Market134
Property Features for 1245/1251 Montvue Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B 3
Parking
120
Subdivision
Not In Subdivision
Directions
From I-81 at Exit 59, take Highway 36 toward Johnson City. Just off the exit turn right onto W Shipley Ferry Rd. for.01/10 mile. Turn left onto Montvue. Stay straight to top of hill and enter gated area. Gate to 1245 Montvue is on the left and 1251 is on the right.
Standard status
Pending
APN
106c C 001.01
Size
12,500 SF
Lot size
6.19 Acres
Taxes and HOA fees
Tax Annual Amount
4081
Utilities
Sewer type
Public Sewer
Heating system
Heat Pump (Heating), Natural Gas
Cooling system
Heat Pump, Central Air
Water source
Public
Building Details
Year built
1998
Building materials
Metal Siding
Roof type
Metal
Listing Agency:
TCI Group - Jerry Petzoldt Agency, LLC
(423) 230-0255
Listed By:
Ed Mahaffey · License #355986
(423) 430-4215
Added: Apr 19
Changed: Aug 15
Last Checked: Aug 30 at 11:06AM
MLS# 9994130
Copyright © 2026 Tennessee Virginia Regional Multiple Listing Service. 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 flex space property includes two commercial buildings on a 6.19-acre parcel. The improvements are constructed with metal siding and include metal roofing, heat pump and natural gas heating, central air, public water, and public sewer. The property was built in 1998 and is fully fenced with gated access.
Located at 1245/1251 Montvue Road in Kingsport, the site is visible from Interstate 81 at Exit 59 and adjacent Highway 36. Interstate 26 is within two miles, while Tri-Cities Airport is five miles away. The property also offers a 60-foot location sign and is positioned near regional markets including Johnson City and Bristol. B3 zoning allows a broad range of approved commercial activities, including warehouse, light manufacturing, equipment service, retail showroom, office, restaurant, and storage uses.
Located at 1245/1251 Montvue Road in Kingsport, the site is visible from Interstate 81 at Exit 59 and adjacent Highway 36. Interstate 26 is within two miles, while Tri-Cities Airport is five miles away. The property also offers a 60-foot location sign and is positioned near regional markets including Johnson City and Bristol. B3 zoning allows a broad range of approved commercial activities, including warehouse, light manufacturing, equipment service, retail showroom, office, restaurant, and storage uses.
Key Highlights
- 6.19‑acre commercial property with two buildings
- Visible from Interstate 81 at Exit 59 and adjacent Highway 36
- 60‑foot location sign for Interstate 81 exposure
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
$100,534
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
6.09%
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%
$2,010,680
$2.0M
Cap Rate 7%
$1,436,200
$1.4M
Cap Rate 9%
$1,117,044
$1.1M
Market Conditions
NOI Build-Up for 12,500 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
$124.5K $9.96/SF
− Vacancy
−$6.2K −$0.50/SF
EGI
$118.3K $9.46/SF
− OpEx
−$17.7K −$1.42/SF
NOI
$100.5K $8.04/SF
Area
Sullivan County, TN
Vacancy
5.00%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
15.00%
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%
$2,010,680
Cap Rate 7%
$1,436,200
Cap Rate 9%
$1,117,044
Alternative Uses
Best Use
Warehouse
$1.44M
$1.26M – $1.68M
NOI $100,534 @ 7.0% cap · market cap 6.09%
Second Best
Flex RnD
$1.30M
$1.13M – $1.51M
NOI $90,675 @ 7.0% cap · market cap 5.50%
Theoretical Best
Office A
$4.68M
$4.10M – $5.46M
NOI $327,672 @ 7.0% cap · market cap 19.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
176
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37663, TN
14,392
Population
6,679
Households
2.2
Avg Household Size
47
Median Age
34%
College-Educated
95%
High-School Grad
25.8 sq mi
ZIP Area
558
Density / Sq Mi
$76,122
Median Household Income
$45,399
Median Earnings
$886
Median Rent
$224,900
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Two buildings support warehouse, light manufacturing, and commercial showroom uses on a gated commercial site.
Where is this flex space located?
The property is located at 1245/1251 Montvue Road Kingsport, TN.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: 6.19‑acre commercial property with two buildings; Visible from Interstate 81 at Exit 59 and adjacent Highway 36; 60‑foot location sign for Interstate 81 exposure
