NNN Industrial Investment
For Sale
Contact for pricing
10384 Wallace Alley St, Kingsport, TN 37663
Industrial facility is leased on a NNN basis to Trane U.S. Inc. through August 2028.
Property Size8,072 SF
Price / SF$148.04
Days on Market149
Property Features for 10384 Wallace Alley St
General Information
Standard status
Active
Size
8,072 SF
Property subtype
INDUSTRIAL
Zoning
MX
Additional Details
Highway Access
Yes
Building Details
Tenancy
Single
Listing Agency:
The Addington Agency
(423) 845-5800
Listed By:
Garrett Addington · License #337697
(423) 646-1060
Source:
Moodyscre
Added: Apr 19
Changed: Sep 11
Last Checked: Sep 14 at 12:43PM
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 industrial property offers approximately 8,072 square feet and is secured by a NNN lease with Trane U.S. Inc. The lease is in place through August 2028, and the property is currently delivering approximately $75,600–$79,360 in annual NOI. Zoned MX (Mixed Use), the site is suited to a range of industrial, distribution, logistics, and service-based uses.
Located at 10384 Wallace Alley St, Kingsport, TN 37663 in the Wallace Alley industrial corridor near the Tri-Cities Airport, the property also has convenient access to I-81, supporting efficient regional service and distribution operations.
With the existing corporate-backed tenancy and remaining lease term through August 2028, this asset combines current income with flexibility under MX zoning for long-term adaptability.
Located at 10384 Wallace Alley St, Kingsport, TN 37663 in the Wallace Alley industrial corridor near the Tri-Cities Airport, the property also has convenient access to I-81, supporting efficient regional service and distribution operations.
With the existing corporate-backed tenancy and remaining lease term through August 2028, this asset combines current income with flexibility under MX zoning for long-term adaptability.
Key Highlights
- 8,000± SF industrial facility leased on a NNN basis to Trane U.S. Inc.
- Lease provides annual NOI of approximately $75,600–$79,360 and runs through August 2028.
- NNN lease with Trane U.S. Inc. offers corporate‑backed income through the lease term.
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
$58,554
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
4.90%
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%
$1,171,080
$1.2M
Cap Rate 7%
$836,486
$836.5K
Cap Rate 9%
$650,600
$650.6K
Market Conditions
NOI Build-Up for 8,072 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
$96.9K $12.00/SF
− Vacancy
−$6.8K −$0.84/SF
EGI
$90.1K $11.16/SF
− OpEx
−$31.5K −$3.91/SF
NOI
$58.6K $7.25/SF
Area
Sullivan County, TN
Vacancy
7.00%
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%
$1,171,080
Cap Rate 7%
$836,486
Cap Rate 9%
$650,600
Alternative Uses
Best Use
Flex RnD
$836.5K
$731.9K – $975.9K
NOI $58,554 @ 7.0% cap · market cap 4.90%
Second Best
Industrial
$763.8K
$668.3K – $891.1K
NOI $53,464 @ 7.0% cap · market cap 4.47%
Theoretical Best
Office A
$3.02M
$2.64M – $3.53M
NOI $211,597 @ 7.0% cap · market cap 17.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
86
Businesses Nearby
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in South region
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Frequently Asked Questions
What type of property is this?
NNN property - Industrial facility is leased on a NNN basis to Trane U.S. Inc. through August 2028.
Where is this nnn property 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: 8,000± SF industrial facility leased on a NNN basis to Trane U.S. Inc.; Lease provides annual NOI of approximately $75,600–$79,360 and runs through August 2028.; NNN lease with Trane U.S. Inc. offers corporate‑backed income through the lease term.
