Commercial Building in High Traffic
For Sale
$1,500,000
820 S Jefferson Ave, Cookeville, TN 38501
Commercial building in a high-traffic location near I-40.
Property Size3,657 SF
Lot Size0.41 Acres
Price / SF$410.17
Days on Market546
Property Features for 820 S Jefferson Ave
General Information
Standard status
Active
Size
3,657 SF
Lot size
0.41 Acres
Taxes and HOA fees
Annual Taxes
$7,772
Listing Agency:
Crye-Leike Lebanon
(615) 444-9777
Listed By:
Wes Stone · License #279833
(615) 444-9777
Source:
Exprealty
Added: Feb 13, 2025
Changed: Aug 8
Last Checked: Aug 10 at 8:04AM
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 Crye-Leike Lebanon
Investment Insights
Based on property information with market context.
This commercial building is situated in a high-traffic area, within half a mile of I-40 at exit 287. The surrounding area includes many major chain stores and restaurants. The building, constructed in 1935 and renovated in 2000, has a block construction with a storefront/retail area and offices. It is located within Cookeville city limits and is zoned CG. The building has 3,657 square feet and sits on a 0.41-acre lot with level topography. The site includes 4,680 square feet of asphalt paving, providing 15 open parking spaces.
Key Highlights
- Prime location in a high‑traffic area, visible to major chain stores and restaurants, and within 1/2 mile of I‑40 (Exit 287).
- Zoned CG (Commercial General) within Cookeville city limits, offering a wide range of business possibilities.
- Building completely renovated in 2000.
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
$57,211
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
3.81%
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%
$1,144,220
$1.1M
Cap Rate 7%
$817,300
$817.3K
Cap Rate 9%
$635,678
$635.7K
Market Conditions
NOI Build-Up for 3,657 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
$84.3K $23.04/SF
− Vacancy
−$2.5K −$0.69/SF
EGI
$81.7K $22.35/SF
− OpEx
−$24.5K −$6.70/SF
NOI
$57.2K $15.64/SF
Area
Putnam County, TN
Vacancy
3.00%
Lease Rate
$23.04 /SF/Yr
Expense Ratio
30.00%
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%
$1,144,220
Cap Rate 7%
$817,300
Cap Rate 9%
$635,678
Alternative Uses
Best Use
Retail
$817.3K
$715.1K – $953.5K
NOI $57,211 @ 7.0% cap · market cap 3.81%
Second Best
Office B
$722.2K
$631.9K – $842.6K
NOI $50,554 @ 7.0% cap · market cap 3.37%
Theoretical Best
Office A
$1.51M
$1.32M – $1.76M
NOI $105,652 @ 7.0% cap · market cap 7.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
422
Businesses Nearby
Explore this area
Business Placement
Demographics for 38501, TN
41,141
Population
19,158
Households
2.1
Avg Household Size
33
Median Age
31%
College-Educated
88%
High-School Grad
87.1 sq mi
ZIP Area
472
Density / Sq Mi
$50,923
Median Household Income
$30,191
Median Earnings
$856
Median Rent
$245,100
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?
Retail space - Commercial building in a high-traffic location near I-40.
Where is this retail space located?
The property is located at 820 S Jefferson Ave Cookeville, TN.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Prime location in a high‑traffic area, visible to major chain stores and restaurants, and within 1/2 mile of I‑40 (Exit 287).; Zoned CG (Commercial General) within Cookeville city limits, offering a wide range of business possibilities.; Building completely renovated in 2000.
