Corner Retail/Office Flex
For Sale
$900,000
6916 Lee Hwy, Chattanooga, TN 37421
COMMERCIAL - Chattanooga, TN
Property Size5,220 SF
Price / SF$172.41
Days on Market90
Property Features for 6916 Lee Hwy
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Convenient location just off I-75 at Shallowford Rd, near Hamilton Place Mall
Standard status
Active
Listing Agency:
Potts Brothers Land & Auction
(706) 764-1226
Listed By:
Bruce Potts
(706) 764-1226
Added: May 26
Changed: Aug 4
Last Checked: Aug 23 at 10:06PM
MLS# 11791194
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.
The property includes a commercial building on a corner lot and an adjacent residential lot with a house. The commercial component is approximately 5,220± square feet and features a metal roof and metal siding, a concrete floor, storage area, an office area with two restrooms, and a retail sales area. The adjacent residential lot contains a residence estimated at approximately 2,760 square feet with three bedrooms and two bathrooms, a large family room with a fireplace, an eat-in kitchen with built-in oven and cooktop plus a built-in dishwasher, a dining room, a large foyer, and a paved driveway.
The commercial building is located on the corner of Lee Hwy and Robinson Dr., with convenient access just off I-75 at Shallowford Rd and near Hamilton Place Mall. Zoning is listed as C-C for the commercial lot and RN3 for the residential lot.
This configuration can support businesses seeking both customer-facing retail space and back-of-house utility, with an office and two restrooms already in place alongside storage and concrete flooring. The additional adjacent residential lot and home may also appeal to buyers evaluating an ownership arrangement that includes both commercial and residential use within the same offering, subject to the respective zoning designations.
The commercial building is located on the corner of Lee Hwy and Robinson Dr., with convenient access just off I-75 at Shallowford Rd and near Hamilton Place Mall. Zoning is listed as C-C for the commercial lot and RN3 for the residential lot.
This configuration can support businesses seeking both customer-facing retail space and back-of-house utility, with an office and two restrooms already in place alongside storage and concrete flooring. The additional adjacent residential lot and home may also appeal to buyers evaluating an ownership arrangement that includes both commercial and residential use within the same offering, subject to the respective zoning designations.
Key Highlights
- Property includes 2 lots: a commercial building lot on Lee Hwy and an adjacent residential lot on Robinson Dr
- Commercial lot/building on the corner of Lee Hwy and Robinson Dr, approx. 5,220 +/- SF, with metal roof and siding
- Commercial building features storage area, office area, retail sales area, concrete floor, and 2 restrooms
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
$57,629
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
6.40%
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%
$1,152,580
$1.2M
Cap Rate 7%
$823,271
$823.3K
Cap Rate 9%
$640,322
$640.3K
Market Conditions
NOI Build-Up for 5,220 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
$100.2K $19.20/SF
− Vacancy
−$8.0K −$1.54/SF
EGI
$92.2K $17.66/SF
− OpEx
−$34.6K −$6.62/SF
NOI
$57.6K $11.04/SF
Area
Chattanooga, TN
Vacancy
8.00%
Lease Rate
$19.20 /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%
$1,152,580
Cap Rate 7%
$823,271
Cap Rate 9%
$640,322
Alternative Uses
Best Use
Mixed Use
$823.3K
$720.4K – $960.5K
NOI $57,629 @ 7.0% cap · market cap 6.40%
Second Best
Apartment 5plus
$657.0K
$574.8K – $766.5K
NOI $45,987 @ 7.0% cap · market cap 5.11%
Theoretical Best
Office A
$1.15M
$1.01M – $1.35M
NOI $80,700 @ 7.0% cap · market cap 8.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,220
Businesses Nearby
130k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 41%
Groceries 22%
Dining 19%
Hotels & Casinos 15%
Food City
Groceries
28,973 visits/mo
0.1 miles
Speedway
Shops & Services
14,945 visits/mo
0.1 miles
SONIC Drive In
Dining
12,433 visits/mo
0.3 miles
Shell
Shops & Services
11,925 visits/mo
0.5 miles
Waffle House
Dining
10,686 visits/mo
0.4 miles
Demographics for 37421, TN
51,686
Population
23,978
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
92%
High-School Grad
31.7 sq mi
ZIP Area
1,630
Density / Sq Mi
$79,958
Median Household Income
$44,452
Median Earnings
$1,313
Median Rent
$299,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Corner building with retail sales, office space, storage, and restrooms on a commercial lot zoned C-C.
Where is this mixed-use property located?
The property is located at 6916 Lee Hwy Chattanooga, TN.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: Property includes 2 lots: a commercial building lot on Lee Hwy and an adjacent residential lot on Robinson Dr; Commercial lot/building on the corner of Lee Hwy and Robinson Dr, approx. 5,220 +/- SF, with metal roof and siding; Commercial building features storage area, office area, retail sales area, concrete floor, and 2 restrooms
