Kingsport Industrial Flex
For Sale
Contact for pricing
10384 Wallace Alley St, Kingsport, TN 37663
8,000 SqFt industrial flex space with 5.88% CAP rate.
Property Size8,000 SF
Price / SF$149.38
Days on Market161
Property Features for 10384 Wallace Alley St
General Information
Standard status
Active
Size
8,000 SF
Class
A
Property subtype
Industrial, Office
Zoning
MX
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$79,360
Building Details
Year Built
1996
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
The Addington Agency
(423) 646-1060
Listed By:
Garrett Addington · License #TN: 337697
Source:
Crexi
Added: Mar 5
Changed: Aug 8
Last Checked: Aug 12 at 11:13AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of The Addington Agency
Investment Insights
Based on property information with market context.
This commercial property in Kingsport, Tennessee, offers 8,000 square feet of industrial flex space. The property is suitable for industrial, warehouse, and office uses. The property has a capitalization rate of 5.88%.
Key Highlights
- 5.88% CAP Rate makes this an attractive investment opportunity
- Industrial Property suitable for various business uses
- 8,000 SqFt of versatile space
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
$64,342
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
5.38%
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%
$1,286,840
$1.3M
Cap Rate 7%
$919,171
$919.2K
Cap Rate 9%
$714,911
$714.9K
Market Conditions
NOI Build-Up for 8,000 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
$79.7K $9.96/SF
− Vacancy
−$4.0K −$0.50/SF
EGI
$75.7K $9.46/SF
− OpEx
−$11.4K −$1.42/SF
NOI
$64.3K $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%
$1,286,840
Cap Rate 7%
$919,171
Cap Rate 9%
$714,911
Alternative Uses
Best Use
Warehouse
$919.2K
$804.3K – $1.07M
NOI $64,342 @ 7.0% cap · market cap 5.38%
Second Best
Flex RnD
$829.0K
$725.4K – $967.2K
NOI $58,032 @ 7.0% cap · market cap 4.86%
Theoretical Best
Office A
$3.00M
$2.62M – $3.50M
NOI $209,710 @ 7.0% cap · market cap 17.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
130
Businesses Nearby
Well-served
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 - 8,000 SqFt industrial flex space with 5.88% CAP rate.
Where is this flex space located?
The property is located at 10384 Wallace Alley St Kingsport, TN.
What is the asking price?
The asking price for this property is $1,195,000.
What are key features of this property?
This property features: 5.88% CAP Rate makes this an attractive investment opportunity; Industrial Property suitable for various business uses; 8,000 SqFt of versatile space
