100% Leased Office
For Sale
$1,625,000
121 Executive Drive, Jackson, TN 38305
COMMERCIAL - Jackson, TN
Property Size9,230 SF
Lot Size1.11 Acres
Price / SF$176.06
Days on Market546
Property Features for 121 Executive Drive
General Information
Property type
Commercial Sale
Property subtype
Office
Parking
53
Security features
Security System
Fencing
Privacy
Elementary school district
Jackson Madison Consolidated District
Standard status
Active
APN
056H A 025.00
Size
9,230 SF
Lot size
1.11 Acres
Taxes and HOA fees
Tax Annual Amount
11687
Utilities
Utilities
Phone Available
Sewer type
Public Sewer
Water source
Public
Building Details
Year built
2005
Floors in Building
1
Flooring type
Vinyl, Carpet
Building materials
Block, Brick Veneer
Roof type
Shingle
Listing Agency:
Fisher Realty & Auction
(731) 286-0090
Listed By:
John Eric Robertson · License #370775
(731) 445-8053
Added: Feb 12, 2025
Changed: Aug 4
Last Checked: Aug 12 at 9:06AM
MLS# 2500615
Copyright © 2026 Central West Tennessee Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office building at 121 Executive Drive in Jackson, Tennessee is built with block and brick veneer construction and was completed in 2005. Interior finishes include carpet and vinyl flooring, and the roof is shingled. The property sits behind privacy fencing and has access to public water and public sewer, with phone service available.
The facility is operated as the Tennessee Corrections Institute and is currently 100% occupied under a new 10-year lease, featuring a 5-year firm term. The lease is described as being backed by the State of Tennessee, supported by the State’s “AAA” credit rating.
With the site area totaling 1.11 acres and a property size of 9,230 square feet, this offering presents an income-producing office asset with an established, long-term occupancy structure.
The facility is operated as the Tennessee Corrections Institute and is currently 100% occupied under a new 10-year lease, featuring a 5-year firm term. The lease is described as being backed by the State of Tennessee, supported by the State’s “AAA” credit rating.
With the site area totaling 1.11 acres and a property size of 9,230 square feet, this offering presents an income-producing office asset with an established, long-term occupancy structure.
Key Highlights
- 100% occupied under a new 10‑year lease with a 5‑year firm term
- 1.11‑acre site and 9,230 SF office building
- Built in 2005 with block and brick veneer construction
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
$98,496
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
6.06%
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%
$1,969,920
$2.0M
Cap Rate 7%
$1,407,086
$1.4M
Cap Rate 9%
$1,094,400
$1.1M
Market Conditions
NOI Build-Up for 9,230 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
$157.3K $17.04/SF
− Vacancy
−$26.0K −$2.81/SF
EGI
$131.3K $14.23/SF
− OpEx
−$32.8K −$3.56/SF
NOI
$98.5K $10.67/SF
Area
Madison County, TN
Vacancy
16.50%
Lease Rate
$17.04 /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%
$1,969,920
Cap Rate 7%
$1,407,086
Cap Rate 9%
$1,094,400
Alternative Uses
Best Use
Office B
$1.41M
$1.23M – $1.64M
NOI $98,496 @ 7.0% cap · market cap 6.06%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.90M
$1.66M – $2.22M
NOI $133,045 @ 7.0% cap · market cap 8.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
361
Businesses Nearby
Explore this area
Business Placement
Demographics for 38305, TN
52,686
Population
22,950
Households
2.3
Avg Household Size
40
Median Age
32%
College-Educated
94%
High-School Grad
128.0 sq mi
ZIP Area
412
Density / Sq Mi
$66,292
Median Household Income
$37,416
Median Earnings
$1,201
Median Rent
$221,200
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 - Office building built in 2005, served by public utilities, with 100% occupancy under a new long-term lease.
Where is this office building located?
The property is located at 121 Executive Drive Jackson, TN.
What is the asking price?
The asking price for this property is $1,625,000.
What are key features of this property?
This property features: 100% occupied under a new 10‑year lease with a 5‑year firm term; 1.11‑acre site and 9,230 SF office building; Built in 2005 with block and brick veneer construction
