Valleybrook Drive Office Building For
For Sale
Contact for pricing
825 Valleybrook Drive, Memphis, TN
Spacious office building with flexible layout available for sale.
Property Size17,966 SF
Lot Size1.47 Acres
Price / SF$250.47
Days on Market505
Property Features for 825 Valleybrook Drive
General Information
Standard status
Active
Size
17,966 SF
Lot size
1.47 Acres
Property subtype
OFFICE
Listing Agency:
Avison Young | Memphis
(615) 727-7409
Listed By:
Shane Soefker · License #329608
(901) 239-6666
Source:
Moodyscre
Added: Apr 22, 2025
Changed: Aug 13
Last Checked: Sep 8 at 4:33AM
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 Avison Young | Memphis
Investment Insights
Based on property information with market context.
The property features a spacious and flexible layout, encompassing approximately 17,966 square feet. The second floor provides 2,903 square feet of space. The building is divisible down to 10,000 square feet, accommodating various tenant requirements.
Key Highlights
- Spacious layout encompassing approximately 17,966 square feet.
- Divisible down to 10,000 square feet, accommodating various tenant requirements.
- Second floor provides 2,903 square feet.
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
$274,880
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
6.11%
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%
$5,497,600
$5.5M
Cap Rate 7%
$3,926,857
$3.9M
Cap Rate 9%
$3,054,222
$3.1M
Market Conditions
NOI Build-Up for 17,966 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
$431.2K $24.00/SF
− Vacancy
−$64.7K −$3.60/SF
EGI
$366.5K $20.40/SF
− OpEx
−$91.6K −$5.10/SF
NOI
$274.9K $15.30/SF
Area
Memphis, TN
Vacancy
15.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
25.00%
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%
$5,497,600
Cap Rate 7%
$3,926,857
Cap Rate 9%
$3,054,222
Alternative Uses
Best Use
Office B
$3.93M
$3.44M – $4.58M
NOI $274,880 @ 7.0% cap · market cap 6.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.31M
$4.65M – $6.19M
NOI $371,681 @ 7.0% cap · market cap 8.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,567
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Office in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Spacious office building with flexible layout available for sale.
Where is this office building located?
The property is located at 825 Valleybrook Drive Memphis, TN.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Spacious layout encompassing approximately 17,966 square feet.; Divisible down to 10,000 square feet, accommodating various tenant requirements.; Second floor provides 2,903 square feet.
