Building Details

Year Built 1948

Buildings 1

Stories 1

Listing Agency: Tower Property Group, LLC

Listed By: Jon Hughes · License #TN 294692 Show Phone

Source: Crexi

Added: May 7 Changed: Oct 2 Last Checked: Oct 14 at 8:03PM

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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 Tower Property Group, LLC

Investment Insights

Based on property information with market context.

Built in 1948, this freestanding flex property combines 4,280 +/- SF of office space with an additional 4,280 +/- SF below-grade warehouse. The configuration supports a range of office, retail, and industrial applications, with exterior access serving the warehouse area. On-site parking is included.

The property is positioned along the Bailey Avenue corridor with access to downtown Chattanooga and major thoroughfares. I-H heavy industrial zoning provides the governing land-use designation for the site.

Key Highlights

• 4,280 +/- SF office space
• Additional 4,280 +/- SF below‑grade warehouse
• I‑H Heavy Industrial zoning

Financial Insights

Estimated NOI and Cap Rate

NOI / Yr

$49,113

Cap Rate

5.78%

Suggested Prices Based on Cap Rates

Cap Rate 5%

$982,260 $982.3K

Cap Rate 7%

$701,614 $701.6K

Cap Rate 9%

$545,700 $545.7K

Market Conditions

NOI Build-Up for 4,280 SF

Gross rent

$77.0K $18.00/SF

− Vacancy

−$11.6K −$2.70/SF

EGI

$65.5K $15.30/SF

− OpEx

−$16.4K −$3.82/SF

NOI

$49.1K $11.48/SF

Area

Chattanooga, TN

Vacancy

15.00%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

25.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates

Cap Rate 5%

$982,260

Cap Rate 7%

$701,614

Cap Rate 9%

$545,700

Alternative Uses

Best Use

Office B

$701.6K

$613.9K – $818.6K (±1% cap)

NOI $49,113 @ 7.0% cap · market cap 5.78%

Second Best

Flex RnD

$576.6K

$504.5K – $672.7K (±1% cap)

NOI $40,361 @ 7.0% cap · market cap 4.75%

Theoretical Best

Office A

$945.3K

$827.1K – $1.10M (±1% cap)

NOI $66,168 @ 7.0% cap · market cap 7.78%

Zoning and permitted uses should be independently verified with authorities. How Realmo checks its estimates

Property Analytics

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Open Analytics

Current Use

Photo Doctor Photography Service Hembree Guitars / The Shop (Bike/Boat/Book/etc) Store Gig City Custom (Bike/Boat/Book/etc) Store Scenic City Instrument ... (Bike/Boat/Book/etc) Store

Suggested Use

Top Pick Auto Parts Store Storage Facility Nail Salon Dental Office Hair Salon HVAC Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

1,128

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 37404, TN

13,106

Population

5,887

Households

2.2

Avg Household Size

34

Median Age

32%

College-Educated

86%

High-School Grad

5.2 sq mi

ZIP Area

2,520

Density / Sq Mi

$53,585

Median Household Income

$35,983

Median Earnings

$999

Median Rent

$235,300

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this flex space located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Flex space - Freestanding commercial property combining office accommodations with below-grade warehouse space and I-H heavy industrial zoning.

Where is this flex space located?

The property is located at 1085 Bailey Ave Chattanooga, TN.

What is the asking price?

The asking price for this property is $850,000.

What are key features of this property?

This property features: 4,280 +/- SF office space; Additional 4,280 +/- SF below‑grade warehouse; I‑H Heavy Industrial zoning