Net-Leased Industrial
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For Sale
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10390 Wallace Alley Street, Kingsport, TN 37663
Trane Supply occupies the facility under a net lease with a five-year renewal beginning in 2027.
Property Size20,546 SF
Lot Size2.10 Acres
Price / SF$124.32
Days on Market7
Property Features for 10390 Wallace Alley Street
General Information
Standard status
Active
Size
20,546 SF
Lot size
2.10 Acres
Property subtype
Industrial
Additional Details
Highway Access
Yes
Warehouse Space
20,546 SF
Building Details
Building Size
20,546 SF
Listing Agency:
Charles Hawkins Co.
Listed By:
Jake Morris · License #353235
(678) 209-4851
Source:
Crexi
Added: Sep 21
Changed: Sep 24
Last Checked: Sep 26 at 5:36AM
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 Charles Hawkins Co.
Investment Insights
Based on property information with market context.
This industrial warehouse comprises approximately 20,546 square feet on about 2.10 acres. Trane Supply, an HVAC distribution and service business, has occupied the property since 2009. Its net lease includes a five-year renewal commencing February 1, 2027, with annual rental increases of 3%.
The Kingsport property has access to I-81 and I-26, connecting it with the broader Tri-Cities transportation network.
The Kingsport property has access to I-81 and I-26, connecting it with the broader Tri-Cities transportation network.
Key Highlights
- Approximately 20,546 square feet on about 2.10 acres
- Net leased to Trane Supply, an HVAC distribution and service operation
- Trane Supply has occupied the property since 2009
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
$165,245
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
6.47%
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%
$3,304,900
$3.3M
Cap Rate 7%
$2,360,643
$2.4M
Cap Rate 9%
$1,836,056
$1.8M
Market Conditions
NOI Build-Up for 20,546 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
$204.6K $9.96/SF
− Vacancy
−$10.2K −$0.50/SF
EGI
$194.4K $9.46/SF
− OpEx
−$29.2K −$1.42/SF
NOI
$165.2K $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%
$3,304,900
Cap Rate 7%
$2,360,643
Cap Rate 9%
$1,836,056
Alternative Uses
Best Use
Warehouse
$2.36M
$2.07M – $2.75M
NOI $165,245 @ 7.0% cap · market cap 6.47%
Second Best
Industrial
$1.94M
$1.70M – $2.27M
NOI $136,084 @ 7.0% cap · market cap 5.33%
Theoretical Best
Office A
$7.69M
$6.73M – $8.98M
NOI $538,588 @ 7.0% cap · market cap 21.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
86
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in South region
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Similar Off Market Nearby
- U-Pack — 821 Centenary Rd, Blountville, TN 37617
- Gateway Self Storage — 2132 TN-75, Blountville, TN 37617
Frequently Asked Questions
What type of property is this?
Warehouse - Trane Supply occupies the facility under a net lease with a five-year renewal beginning in 2027.
Where is this warehouse located?
The property is located at 10390 Wallace Alley Street Kingsport, TN.
What is the asking price?
The asking price for this property is $2,554,272.
What are key features of this property?
This property features: Approximately 20,546 square feet on about 2.10 acres; Net leased to Trane Supply, an HVAC distribution and service operation; Trane Supply has occupied the property since 2009
