Knoxville Industrial Distribution
For Sale
$16,100,000
700 Dalen Ln, Knoxville, TN 37932
106,000 SF distribution facility in Knoxville's industrial corridor.
Property Size189,000 SF
Price / SF$151.89
Days on Market163
Property Features for 700 Dalen Ln
General Information
Standard status
Active
Size
189,000 SF
Class
C
Property subtype
Industrial
Building Details
Building Size
189,000 SF
Year Built
2002
Listing Agency:
Lee & Associates - Nashville
Listed By:
Matthew Strother · License #363515
(865) 309-6272
Source:
Svnwood
Added: Mar 27
Changed: Sep 4
Last Checked: Jul 16 at 6:43AM
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 Lee & Associates - Nashville
Investment Insights
Based on property information with market context.
Located in Knoxville, Tennessee's industrial corridor, the property at 700 Dalen Lane offers a distribution opportunity with access to transportation networks. The facility provides approximately 106,000 square feet of space designed for logistics and warehouse operations. It features 31-foot clear heights and 55-foot by 75-foot column spacing to facilitate racking layouts and maximize storage capacity. The building includes 12 dock-high doors and one drive-in door. A small office area with two restrooms is available for administrative functions. The warehouse is heated and equipped with energy-efficient LED lighting and a wet sprinkler system. Existing racking can remain in place. The property is suited for distribution, logistics, and light manufacturing uses.
Key Highlights
- Prime location in Knoxville, TN's industrial corridor with immediate access to key transportation networks.
- Approximately 106,000 SF of functional warehouse space suitable for distribution, logistics, and light manufacturing.
- Benefit from 31’ clear heights and 55’ x 75’ column spacing for optimal racking and storage.
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
$919,561
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
5.71%
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%
$18,391,220
$18.4M
Cap Rate 7%
$13,136,586
$13.1M
Cap Rate 9%
$10,217,344
$10.2M
Market Conditions
NOI Build-Up for 106,000 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
$1.14M $10.80/SF
− Vacancy
−$63.0K −$0.59/SF
EGI
$1.08M $10.21/SF
− OpEx
−$162.3K −$1.53/SF
NOI
$919.6K $8.68/SF
Area
Knoxville, TN
Vacancy
5.50%
Lease Rate
$10.80 /SF/Yr
Expense Ratio
15.00%
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%
$18,391,220
Cap Rate 7%
$13,136,586
Cap Rate 9%
$10,217,344
Alternative Uses
Best Use
Warehouse
$13.14M
$11.49M – $15.33M
NOI $919,561 @ 7.0% cap · market cap 5.71%
Second Best
Industrial
$10.16M
$8.89M – $11.86M
NOI $711,430 @ 7.0% cap · market cap 4.42%
Theoretical Best
Office A
$26.25M
$22.97M – $30.63M
NOI $1,837,786 @ 7.0% cap · market cap 11.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
495
Businesses Nearby
Explore this area
Business Placement
Demographics for 37932, TN
21,726
Population
9,141
Households
2.4
Avg Household Size
38
Median Age
55%
College-Educated
94%
High-School Grad
29.0 sq mi
ZIP Area
749
Density / Sq Mi
$109,900
Median Household Income
$61,936
Median Earnings
$1,516
Median Rent
$431,200
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution center - 106,000 SF distribution facility in Knoxville's industrial corridor.
Where is this distribution center located?
The property is located at 700 Dalen Ln Knoxville, TN.
What is the asking price?
The asking price for this property is $16,100,000.
What are key features of this property?
This property features: Prime location in Knoxville, TN's industrial corridor with immediate access to key transportation networks.; Approximately 106,000 SF of functional warehouse space suitable for distribution, logistics, and light manufacturing.; Benefit from **31’ clear heights and 55’ x 75’ column spacing** for optimal racking and storage.
