Medical Office Near Lee
For Sale
$950,000
6714 Heritage Business Court, Chattanooga, TN 37421
Medical office space with convenient access to major transportation routes.
Property Size3,048 SF
Days on Market163
Property Features for 6714 Heritage Business Court
General Information
Standard status
Active
Size
3,048 SF
Class
A
Property subtype
Office
Building Details
Building Size
3,048 SF
Year Built
2004
Listing Agency:
SVN Second Story Real Estate Management
(865) 804-8351
Listed By:
Chandler Hale · License #GA #434029
(865) 804-8351
Source:
Svn
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 8 at 6:06AM
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 SVN Second Story Real Estate Management
Investment Insights
Based on property information with market context.
Located just off Lee Highway, this property offers immediate access to I-75 and Hwy 153, placing it minutes away from the Hamilton Place retail corridor, the Chattanooga Airport, and major regional employers like Volkswagen and Amazon. Constructed in 2004 and renovated in 2018, this medical/professional office space features a versatile layout that includes a reception/waiting area, 6-7 exam rooms, and 2-3 private offices. The property has 18 dedicated parking spots. Previously utilized for pulmonology, the space is medical ready and features modern finishes such as a drop ceiling, natural light, and professional-grade flooring throughout. Additional conveniences include private restrooms, a kitchenette/breakroom area, and secure storage space. The property also offers easy-access ground floor entry with ADA-compliant features.
Key Highlights
- Prime location with immediate access to I‑75 and Hwy 153.
- Medical‑ready office space previously utilized for pulmonology.
- Versatile layout with reception area, 6‑7 exam rooms, and 2‑3 private offices.
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
$34,976
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
3.68%
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%
$699,520
$699.5K
Cap Rate 7%
$499,657
$499.7K
Cap Rate 9%
$388,622
$388.6K
Market Conditions
NOI Build-Up for 3,048 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
$54.9K $18.00/SF
− Vacancy
−$8.2K −$2.70/SF
EGI
$46.6K $15.30/SF
− OpEx
−$11.7K −$3.82/SF
NOI
$35.0K $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 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%
$699,520
Cap Rate 7%
$499,657
Cap Rate 9%
$388,622
Alternative Uses
Best Use
Office B
$499.7K
$437.2K – $582.9K
NOI $34,976 @ 7.0% cap · market cap 3.68%
Second Best
Healthcare Medical
$485.0K
$424.4K – $565.8K
NOI $33,950 @ 7.0% cap · market cap 3.57%
Theoretical Best
Office A
$673.2K
$589.0K – $785.4K
NOI $47,122 @ 7.0% cap · market cap 4.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
697
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 37421, TN
51,686
Population
23,978
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
92%
High-School Grad
31.7 sq mi
ZIP Area
1,630
Density / Sq Mi
$79,958
Median Household Income
$44,452
Median Earnings
$1,313
Median Rent
$299,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office space with convenient access to major transportation routes.
Where is this medical office space located?
The property is located at 6714 Heritage Business Court Chattanooga, TN.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Prime location with immediate access to I‑75 and Hwy 153.; Medical‑ready office space previously utilized for pulmonology.; Versatile layout with reception area, **6‑7 exam rooms**, and 2‑3 private offices.
