Flex Space with Freight
For Sale
$879,900
5602 Kingsport Highway, Gray, TN 37615
Commercial Sale, Gray, TN
Property Size7,832 SF
Lot Size1.08 Acres
Price / SF$112.35
Days on Market134
Property Features for 5602 Kingsport Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B4
Subdivision
J B Rice
Directions
heading north on Kingsport Hwy towards Gray; building is on main corridor on yoru right.
Standard status
Active
APN
013i A 01000 000
Size
7,832 SF
Lot size
1.08 Acres
Taxes and HOA fees
Tax Annual Amount
1502
Utilities
Heating system
Central
Cooling system
Central Air
Amenities
break room
freight elevator
pylon signage
Building Details
Year built
1960
Building materials
Block, Concrete, Synthetic Stucco
Roof type
Metal, Rubber, Shingle
Listing Agency:
REMAX Checkmate, Inc. Realtors · RE/MAX International
(423) 282-0432
Listed By:
Jay Goodson · License #329807
(423) 612-3035
Added: Apr 29
Changed: Sep 8
Last Checked: Sep 9 at 12:06AM
MLS# 9994644
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 7832-square-foot flex property at 5602 Kingsport Highway in Gray, Tennessee, combines finished commercial areas with functional warehouse space. The upper level includes a showroom, lobby, offices, and break room, while the lower level provides a truck dock and freight elevator for movement between areas. Central heating and central air serve the building, and the HVAC system was replaced in 2024. Block, concrete, and synthetic stucco construction support the existing improvements.
The property occupies a 1.08-acre site and includes the adjacent .36-acre parcel. More than 150 ft of road frontage, pylon signage, and a B4 zoning designation add practical value for an owner-user or commercial operation. The roof includes shingle, rubber, and metal components.
The property occupies a 1.08-acre site and includes the adjacent .36-acre parcel. More than 150 ft of road frontage, pylon signage, and a B4 zoning designation add practical value for an owner-user or commercial operation. The roof includes shingle, rubber, and metal components.
Key Highlights
- 7832 square feet of flex space with showroom, lobby, offices, and break room
- Lower level includes a truck dock and freight elevator
- HVAC replaced in 2024; central heating and central air
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
$57,424
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
6.53%
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%
$1,148,480
$1.1M
Cap Rate 7%
$820,343
$820.3K
Cap Rate 9%
$638,044
$638.0K
Market Conditions
NOI Build-Up for 7,832 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
$94.0K $12.00/SF
− Vacancy
−$5.6K −$0.72/SF
EGI
$88.3K $11.28/SF
− OpEx
−$30.9K −$3.95/SF
NOI
$57.4K $7.33/SF
Area
Washington County, TN
Vacancy
6.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
35.00%
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%
$1,148,480
Cap Rate 7%
$820,343
Cap Rate 9%
$638,044
Alternative Uses
Best Use
Retail
$1.75M
$1.53M – $2.04M
NOI $122,525 @ 7.0% cap · market cap 13.92%
Second Best
Office B
$1.65M
$1.45M – $1.93M
NOI $115,600 @ 7.0% cap · market cap 13.14%
Theoretical Best
Office A
$3.30M
$2.89M – $3.85M
NOI $231,201 @ 7.0% cap · market cap 26.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Dock-high doors
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
91
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37615, TN
22,151
Population
9,946
Households
2.2
Avg Household Size
43
Median Age
40%
College-Educated
95%
High-School Grad
37.6 sq mi
ZIP Area
589
Density / Sq Mi
$75,556
Median Household Income
$43,758
Median Earnings
$966
Median Rent
$261,200
Median Home Value
Market
Vacancy Rate% for Office 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?
Flex space - Versatile commercial facility combining finished customer-facing areas with warehouse functionality and B4 zoning.
Where is this flex space located?
The property is located at 5602 Kingsport Highway Gray, TN.
What is the asking price?
The asking price for this property is $879,900.
What are key features of this property?
This property features: 7832 square feet of flex space with showroom, lobby, offices, and break room; Lower level includes a truck dock and freight elevator; HVAC replaced in 2024; central heating and central air
