Freestanding Restaurant
For Sale
$350,000
203 Commerce St, Tupelo, MS 38804
Commercial Sale, Tupelo, MS
Property Size2,022 SF
Lot Size0.23 Acres
Price / SF$173.10
Days on Market150
Property Features for 203 Commerce St
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Main St to Fairpark, N on Commerce St.
Subdivision
Northeast Tupelo
Standard status
Active
Size
2,022 SF
Lot size
0.23 Acres
Taxes and HOA fees
Tax Description
Book 1481 Page 069
Tax Annual Amount
2817
Legal Description
Book 1481 Page 069
Building Details
Floors in Building
1
Listing Agency:
TM REALTORS
(662) 842-3844
Listed By:
Kevin Knight · License #S48856
(662) 401-2913
Added: Apr 9
Changed: Aug 19
Last Checked: Sep 5 at 8:06PM
MLS# 26-1227
Copyright © 2026 Northeast Mississippi Board 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 2,022-square-foot commercial building is classified as a conventional restaurant property and previously operated as a restaurant. The layout is identified as suitable for salon, cafe, office, or retail use, providing flexibility for an owner-user or repositioning plan. The site encompasses 0.2312 acres.
The property is located at 203 Commerce St in Tupelo, Mississippi, beside Cadence Arena and one block from Main St at Fairpark. Its setting places the building within the downtown and Fairpark area, with access to established civic and commercial surroundings.
The property is located at 203 Commerce St in Tupelo, Mississippi, beside Cadence Arena and one block from Main St at Fairpark. Its setting places the building within the downtown and Fairpark area, with access to established civic and commercial surroundings.
Key Highlights
- 2,022‑square‑foot conventional restaurant property
- 0.2312‑acre site at 203 Commerce St, Tupelo, MS 38804
- Adjacent to Cadence Arena and one block from Main St at Fairpark
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
$20,973
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
5.99%
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%
$419,460
$419.5K
Cap Rate 7%
$299,614
$299.6K
Cap Rate 9%
$233,033
$233.0K
Market Conditions
NOI Build-Up for 2,022 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
$30.3K $15.00/SF
− Vacancy
−$2.4K −$1.17/SF
EGI
$28.0K $13.83/SF
− OpEx
−$7.0K −$3.46/SF
NOI
$21.0K $10.37/SF
Area
Lee County, MS
Vacancy
7.80%
Lease Rate
$15.00 /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%
$419,460
Cap Rate 7%
$299,614
Cap Rate 9%
$233,033
Alternative Uses
Best Use
Specialty Retail
$299.6K
$262.2K – $349.6K
NOI $20,973 @ 7.0% cap · market cap 5.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$379.7K
$332.3K – $443.0K
NOI $26,582 @ 7.0% cap · market cap 7.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,055
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 38804, MS
17,314
Population
7,978
Households
2.2
Avg Household Size
40
Median Age
30%
College-Educated
87%
High-School Grad
78.5 sq mi
ZIP Area
221
Density / Sq Mi
$63,837
Median Household Income
$37,416
Median Earnings
$858
Median Rent
$201,600
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?
Conventional restaurant - Previously operated as a restaurant, the space is identified for salon, cafe, office, or retail uses.
Where is this conventional restaurant located?
The property is located at 203 Commerce St Tupelo, MS.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 2,022‑square‑foot conventional restaurant property; 0.2312‑acre site at 203 Commerce St, Tupelo, MS 38804; Adjacent to Cadence Arena and one block from Main St at Fairpark
