Murfreesboro Commercial Building in
For Sale
$1,400,000
Pending
118 Walnut N Street, Murfreesboro, TN 37130
7,200 sqft commercial building in Murfreesboro's historic courthouse square.
Property Size7,200 SF
Lot Size0.16 Acres
Days on Market561
Property Features for 118 Walnut N Street
General Information
Standard status
Pending
Size
7,200 SF
Lot size
0.16 Acres
Property subtype
Commercial/Industrial
Listing Agency:
Sims Commercial Realtors & Auctioneers
(615) 225-7816
Listed By:
Lydia Sims · License #367081
(615) 225-7816
Source:
Exitrealty
Added: Feb 8, 2025
Changed: Aug 8
Last Checked: Jul 23 at 6:28AM
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 Sims Commercial Realtors & Auctioneers
Investment Insights
Based on property information with market context.
This 7,200 sq. ft. commercial building is located in the heart of Murfreesboro’s historic courthouse square district. The property offers flexibility and could house different types of businesses including a restaurant, bar, bakery, retail shop, event space, or workshop. The building's split-level layout means that one business could occupy the entirety, or the space could be shared between two separate operations. It features easy access to I-24 and foot traffic from the square, and is close to the ongoing Town Creek Project and Historic Bottoms across Broad St. The front of the building on Walnut St features a short landing from street level and a wheelchair lift for ADA compliance, two roll-up retractable windows, and a rollup door at street level for drive-in loading and unloading. The building also has a door at the rear which provides access to an alleyway. Rustic wood finishes, exposed brick and stone, and other architectural and design details enhance the customer experience. This is an opportunity for any business owner who wants to be in the thriving Central Business District (CBD) of one of the fastest-growing communities in the state.
Key Highlights
- 7,200 sq. ft. commercial building in Murfreesboro’s historic courthouse square district.
- Flexible split‑level layout suitable for single or dual occupancy.
- High foot traffic location in the thriving Central Business District (CBD).
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
$83,754
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
5.98%
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%
$1,675,080
$1.7M
Cap Rate 7%
$1,196,486
$1.2M
Cap Rate 9%
$930,600
$930.6K
Market Conditions
NOI Build-Up for 7,200 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
$142.6K $19.80/SF
− Vacancy
−$8.6K −$1.19/SF
EGI
$134.0K $18.61/SF
− OpEx
−$50.3K −$6.98/SF
NOI
$83.8K $11.63/SF
Area
Murfreesboro, TN
Vacancy
6.00%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
37.50%
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%
$1,675,080
Cap Rate 7%
$1,196,486
Cap Rate 9%
$930,600
Alternative Uses
Best Use
Mixed Use
$1.20M
$1.05M – $1.40M
NOI $83,754 @ 7.0% cap · market cap 5.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.82M
$1.59M – $2.12M
NOI $127,060 @ 7.0% cap · market cap 9.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,298
Businesses Nearby
Explore this area
Business Placement
Demographics for 37130, TN
59,677
Population
25,838
Households
2.3
Avg Household Size
32
Median Age
37%
College-Educated
91%
High-School Grad
54.1 sq mi
ZIP Area
1,103
Density / Sq Mi
$60,389
Median Household Income
$37,710
Median Earnings
$1,157
Median Rent
$347,100
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 7,200 sqft commercial building in Murfreesboro's historic courthouse square.
Where is this mixed-use property located?
The property is located at 118 Walnut N Street Murfreesboro, TN.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: 7,200 sq. ft. commercial building in Murfreesboro’s historic courthouse square district.; Flexible split‑level layout suitable for single or dual occupancy.; High foot traffic location in the thriving Central Business District (CBD).
