Sevierville Medical Office Building For
For Sale
$3,450,000
1014 Middle Creek Rd, Sevierville, TN 37862
Medical office building near Mount LeConte Medical Center.
Property Size9,620 SF
Days on Market177
Property Features for 1014 Middle Creek Rd
General Information
Standard status
Active
Size
9,620 SF
Class
B
Property subtype
Office
Building Details
Building Size
9,620 SF
Year Built
2012
Listing Agency:
NAI Koella | RM Moore
(321) 439-3175
Listed By:
Heidi Adams · License #00320097
(321) 439-3175
Source:
Naiglobal
Added: Feb 26
Changed: Aug 14
Last Checked: Aug 22 at 4:06AM
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 NAI Koella | RM Moore
Investment Insights
Based on property information with market context.
This medical office building, formerly a full-service physical therapy practice, is available for acquisition in Sevierville, TN. The property benefits from its location near Mount LeConte Medical Center and its integration within a network of healthcare providers, potentially fostering referrals. On-site parking and convenient access are available. The property presents a turnkey potential for medical practices.
Key Highlights
- Proximity to Mount LeConte Medical Center
- Former full‑service physical therapy practice offering turnkey potential
- Located within a well‑established network of healthcare providers
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
$136,312
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
3.95%
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%
$2,726,240
$2.7M
Cap Rate 7%
$1,947,314
$1.9M
Cap Rate 9%
$1,514,578
$1.5M
Market Conditions
NOI Build-Up for 9,620 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
$221.6K $23.04/SF
− Vacancy
−$39.9K −$4.15/SF
EGI
$181.7K $18.89/SF
− OpEx
−$45.4K −$4.72/SF
NOI
$136.3K $14.17/SF
Area
Sevier County, TN
Vacancy
18.00%
Lease Rate
$23.04 /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%
$2,726,240
Cap Rate 7%
$1,947,314
Cap Rate 9%
$1,514,578
Alternative Uses
Best Use
Office B
$1.95M
$1.70M – $2.27M
NOI $136,312 @ 7.0% cap · market cap 3.95%
Second Best
Healthcare Medical
$1.63M
$1.43M – $1.90M
NOI $114,078 @ 7.0% cap · market cap 3.31%
Theoretical Best
Office A
$4.06M
$3.55M – $4.73M
NOI $283,982 @ 7.0% cap · market cap 8.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
623
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 37862, TN
23,236
Population
13,676
Households
1.7
Avg Household Size
43
Median Age
23%
College-Educated
87%
High-School Grad
81.8 sq mi
ZIP Area
284
Density / Sq Mi
$58,110
Median Household Income
$31,490
Median Earnings
$956
Median Rent
$283,800
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.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office building near Mount LeConte Medical Center.
Where is this medical office space located?
The property is located at 1014 Middle Creek Rd Sevierville, TN.
What is the asking price?
The asking price for this property is $3,450,000.
What are key features of this property?
This property features: Proximity to Mount LeConte Medical Center; Former full‑service physical therapy practice offering **turnkey potential**; Located within a well‑established network of healthcare providers
