Corner Office Building with High
For Sale
Contact for pricing
1275 S Germantown Rd, Germantown, TN 38138
Office building zoned C2 with strong visibility off Germantown Pkwy and approximately 50,000 VPD.
Property Size25,302 SF
Price / SF$266.78
Days on Market378
Property Features for 1275 S Germantown Rd
General Information
Standard status
Active
Size
25,302 SF
Property subtype
OFFICE
Zoning
C2
Site & Location
Traffic Count
50,000 vehicles/day
Road Access
Yes
Listing Agency:
NAI Saig Company - Memphis
Listed By:
Brian Califf · License ##S-41945
(901) 526-3100
Source:
Moodyscre
Added: Sep 2, 2025
Changed: Sep 4
Last Checked: Sep 13 at 9:12AM
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 Saig Company - Memphis
Investment Insights
Based on property information with market context.
This office building for sale is zoned C2 and totals 25,302 square feet. The property benefits from a corner configuration designed for prominent street exposure.
The building is located at the corner of S Germantown Pkwy and Wolf River Blvd, with visibility supported by an estimated 50,000 VPD along Germantown Pkwy. Its positioning offers straightforward access for prospective tenants and customers using the main corridor.
The building is located at the corner of S Germantown Pkwy and Wolf River Blvd, with visibility supported by an estimated 50,000 VPD along Germantown Pkwy. Its positioning offers straightforward access for prospective tenants and customers using the main corridor.
Key Highlights
- Office building zoned C2
- Approximately 50,000 VPD (vehicle traffic) on/near Germantown Pkwy
- Located at the corner of S Germantown Pkwy and Wolf River Blvd
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
$387,121
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
5.74%
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%
$7,742,420
$7.7M
Cap Rate 7%
$5,530,300
$5.5M
Cap Rate 9%
$4,301,344
$4.3M
Market Conditions
NOI Build-Up for 25,302 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
$607.2K $24.00/SF
− Vacancy
−$91.1K −$3.60/SF
EGI
$516.2K $20.40/SF
− OpEx
−$129.0K −$5.10/SF
NOI
$387.1K $15.30/SF
Area
Memphis, TN
Vacancy
15.00%
Lease Rate
$24.00 /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%
$7,742,420
Cap Rate 7%
$5,530,300
Cap Rate 9%
$4,301,344
Alternative Uses
Best Use
Office B
$5.53M
$4.84M – $6.45M
NOI $387,121 @ 7.0% cap · market cap 5.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.48M
$6.54M – $8.72M
NOI $523,448 @ 7.0% cap · market cap 7.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
50,000 VPD
Traffic count
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,266
Businesses Nearby
Explore this area
Business Placement
Demographics for 38138, TN
25,837
Population
10,747
Households
2.4
Avg Household Size
45
Median Age
69%
College-Educated
98%
High-School Grad
11.9 sq mi
ZIP Area
2,171
Density / Sq Mi
$130,125
Median Household Income
$72,810
Median Earnings
$1,716
Median Rent
$393,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
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?
Office building - Office building zoned C2 with strong visibility off Germantown Pkwy and approximately 50,000 VPD.
Where is this office building located?
The property is located at 1275 S Germantown Rd Germantown, TN.
What is the asking price?
The asking price for this property is $6,750,000.
What are key features of this property?
This property features: Office building zoned C2; Approximately 50,000 VPD (vehicle traffic) on/near Germantown Pkwy; Located at the corner of S Germantown Pkwy and Wolf River Blvd
