Signalized-Corner Office
For Sale
$595,000
1201 S Graycroft Ave, Madison, TN 37115
Owner-user office property with professional, medical, legal, and service-business potential in a highly accessible commercial setting.
Property Size1,906 SF
Lot Size1.04 Acres
Price / SF$312.17
Days on Market42
Property Features for 1201 S Graycroft Ave
General Information
Standard status
Active
Size
1,906 SF
Lot size
1.04 Acres
Zoning
ON
Additional Details
Road Access
Yes
Building Details
Year Built
1961
Listing Agency:
Keller Williams Realty
(615) 425-3600
Listed By:
Alec Bahmed · License #358430
Source:
Shearonsellsteam
Added: Jul 20
Changed: Aug 30
Last Checked: Aug 25 at 5:27AM
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 Keller Williams Realty
Investment Insights
Based on property information with market context.
This 1,906-square-foot office building sits on approximately 1.04 acres and was constructed in 1961. The property is zoned ON (Office Neighborhood), with existing improvements that support near-term occupancy and fee simple ownership. Its configuration is suited to professional office, legal, medical, and service-oriented operations.
Positioned at a signalized intersection along a primary commuter route, the property records traffic volumes exceeding 16,000 vehicles per day. The corridor connects Madison with Downtown Nashville, and the site is near area courthouses and expanding residential and multifamily development. The combination of arterial exposure, access, and office zoning supports a range of client-facing commercial uses.
Positioned at a signalized intersection along a primary commuter route, the property records traffic volumes exceeding 16,000 vehicles per day. The corridor connects Madison with Downtown Nashville, and the site is near area courthouses and expanding residential and multifamily development. The combination of arterial exposure, access, and office zoning supports a range of client-facing commercial uses.
Key Highlights
- Approximately 1.04 acres with a 1,906‑square‑foot office building
- ON (Office Neighborhood) zoning
- Signalized hard‑corner position on a primary commuter corridor
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
$31,889
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
5.36%
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%
$637,780
$637.8K
Cap Rate 7%
$455,557
$455.6K
Cap Rate 9%
$354,322
$354.3K
Market Conditions
NOI Build-Up for 1,906 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
$50.3K $26.40/SF
− Vacancy
−$7.8K −$4.09/SF
EGI
$42.5K $22.31/SF
− OpEx
−$10.6K −$5.58/SF
NOI
$31.9K $16.73/SF
Area
Davidson County, TN
Vacancy
15.50%
Lease Rate
$26.40 /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%
$637,780
Cap Rate 7%
$455,557
Cap Rate 9%
$354,322
Alternative Uses
Best Use
Office B
$455.6K
$398.6K – $531.5K
NOI $31,889 @ 7.0% cap · market cap 5.36%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$2.31M
$2.02M – $2.69M
NOI $161,526 @ 7.0% cap · market cap 27.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
266
Businesses Nearby
Explore this area
Business Placement
Demographics for 37115, TN
39,821
Population
19,845
Households
2
Avg Household Size
37
Median Age
23%
College-Educated
82%
High-School Grad
21.5 sq mi
ZIP Area
1,852
Density / Sq Mi
$53,034
Median Household Income
$37,215
Median Earnings
$1,263
Median Rent
$271,100
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Owner-user office property with professional, medical, legal, and service-business potential in a highly accessible commercial setting.
Where is this office building located?
The property is located at 1201 S Graycroft Ave Madison, TN.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Approximately 1.04 acres with a 1,906‑square‑foot office building; ON (Office Neighborhood) zoning; Signalized hard‑corner position on a primary commuter corridor
