Mixed-Use Commercial
For Sale
$350,000
2135 Merchants Row, Germantown, TN 38138
Commercial Sale, Germantown, TN
Property Size2,508 SF
Lot Size0.17 Acres
Price / SF$139.55
Days on Market146
Property Features for 2135 Merchants Row
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Parking features
Underground/Basement
Security features
Security System
Directions
East on Poplar Avenue into Germantown, turn right or South on West Street. Just after passing Saddle Creek shops, turn right onto Market Row, go straight to back of center, turn right onto Market Row. Building will be on left side.
Standard status
Active
Size
2,508 SF
Lot size
0.17 Acres
Taxes and HOA fees
Tax Year
2026
Utilities
Heating system
Electric (Heating), Forced Air, Zoned
Water source
Public
Building Details
Year built
1987
Floors in Building
2
Building materials
Brick
Roof type
Asphalt
Listing Agency:
Tiger Realty
Listed By:
Carol Scott
(901) 770-7835
Added: May 3
Changed: Sep 12
Last Checked: Sep 25 at 6:06AM
MLS# 11738666
Copyright © 2026 My State MLS. 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 2,508-square-foot mixed-use commercial condominium is part of an attached business condominium community. Built in 1987, the property features brick construction, an asphalt roof, electric zoned forced-air heating, public water, and underground or basement parking. The existing layout includes a bathroom, while the commercial zoning supports potential conversion to office, medical, salon, or restaurant use.
The property is positioned within Germantown’s Merchants Row commercial setting, among restaurants and retailers and adjacent to Saddle Creek businesses. Its location provides access to the Poplar area and places the space within an established commercial environment.
The property is positioned within Germantown’s Merchants Row commercial setting, among restaurants and retailers and adjacent to Saddle Creek businesses. Its location provides access to the Poplar area and places the space within an established commercial environment.
Key Highlights
- 2,508‑square‑foot mixed‑use commercial condominium
- 0.165‑acre property built in 1987
- Commercial zoning supports office, medical, salon, or restaurant conversion
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
$30,472
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
8.71%
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%
$609,440
$609.4K
Cap Rate 7%
$435,314
$435.3K
Cap Rate 9%
$338,578
$338.6K
Market Conditions
NOI Build-Up for 2,508 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
$54.2K $21.60/SF
− Vacancy
−$5.4K −$2.16/SF
EGI
$48.8K $19.44/SF
− OpEx
−$18.3K −$7.29/SF
NOI
$30.5K $12.15/SF
Area
Memphis, TN
Vacancy
10.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$609,440
Cap Rate 7%
$435,314
Cap Rate 9%
$338,578
Alternative Uses
Best Use
Mixed Use
$435.3K
$380.9K – $507.9K
NOI $30,472 @ 7.0% cap · market cap 8.71%
Second Best
Retail
$357.4K
$312.7K – $417.0K
NOI $25,017 @ 7.0% cap · market cap 7.15%
Theoretical Best
Office A
$741.2K
$648.6K – $864.8K
NOI $51,886 @ 7.0% cap · market cap 14.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,414
Businesses Nearby
394k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 34%
Dining 19%
Groceries 18%
Beauty & Spa 11%
Kroger
Groceries
69,316 visits/mo
0.5 miles
lululemon athletica
Apparel
36,405 visits/mo
0.1 miles
Apple Store
Electronics
32,628 visits/mo
0.1 miles
Sephora
Beauty & Spa
30,281 visits/mo
0.1 miles
Anthropologie
Apparel
18,105 visits/mo
0.3 miles
Demographics for 38138, TN
25,837
Population
10,747
Households
2.4
Avg Household Size
45
Median Age
69%
College-Educated
98%
High-School Grad
11.9 sq mi
ZIP Area
2,171
Density / Sq Mi
$130,125
Median Household Income
$72,810
Median Earnings
$1,716
Median Rent
$393,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Brick construction, underground parking, and commercial zoning support flexible office, retail, medical, salon, or restaurant use.
Where is this mixed-use property located?
The property is located at 2135 Merchants Row Germantown, TN.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 2,508‑square‑foot mixed‑use commercial condominium; 0.165‑acre property built in 1987; Commercial zoning supports office, medical, salon, or restaurant conversion
