Automotive Service & Office
For Sale
$3,299,000
1501 Callahan Drive, Knoxville, TN 37912
2022-built office and service shop with paved site, 160 parking spaces, and 274 feet of frontage.
Property Size6,590 SF
Lot Size8.96 Acres
Price / SF$500.61
Days on Market141
Property Features for 1501 Callahan Drive
General Information
Standard status
Active
Size
6,590 SF
Total Parking Spaces
160
Lot size
8.96 Acres
Property subtype
Retail - Street Retail
Site & Location
Traffic Count
23,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
6,590 SF
Year Built
2022
Listing Agency:
Providence Commercial Real Estate
Listed By:
Jay Cobble SIOR, CCIM · License #301271
(865) 777-0202
Source:
Commercialcafe
Added: May 14
Changed: Sep 24
Last Checked: Oct 1 at 8:37AM
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 Providence Commercial Real Estate
Investment Insights
Based on property information with market context.
1501 Callahan Dr is a former auto dealer constructed in 2022, featuring an office building and a service shop set on a 8.96-acre site. The property includes approximately 1.56 paved acres and 274 feet of frontage, with the office building at 3,360 square feet and the service shop at 3,230 square feet. Both buildings were constructed in 2022 and include modern features, along with existing pylon signage.
The site offers 160 parking spaces and is positioned with strong roadway exposure, boasting over 23,000 VPD. It sits about 1 mile from I-75 (86,000 VPD) and Clinton Hwy (29,000 VPD), providing convenient access for business operations.
The additional acreage and vacant portion provide room for expansion of the existing facilities or an additional development on the site.
The site offers 160 parking spaces and is positioned with strong roadway exposure, boasting over 23,000 VPD. It sits about 1 mile from I-75 (86,000 VPD) and Clinton Hwy (29,000 VPD), providing convenient access for business operations.
The additional acreage and vacant portion provide room for expansion of the existing facilities or an additional development on the site.
Key Highlights
- Former auto dealer property built in 2022, featuring an office building and service shop on a 8.96‑acre site
- Includes 3,360 SF office building and a 3,230 SF service shop, both constructed in 2022
- Site includes approximately 1.56 paved acres plus 274 ft of frontage and existing pylon signage
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
$94,659
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
2.87%
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%
$1,893,180
$1.9M
Cap Rate 7%
$1,352,271
$1.4M
Cap Rate 9%
$1,051,767
$1.1M
Market Conditions
NOI Build-Up for 6,590 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
$142.3K $21.60/SF
− Vacancy
−$7.1K −$1.08/SF
EGI
$135.2K $20.52/SF
− OpEx
−$40.6K −$6.16/SF
NOI
$94.7K $14.36/SF
Area
Knoxville, TN
Vacancy
5.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$1,893,180
Cap Rate 7%
$1,352,271
Cap Rate 9%
$1,051,767
Alternative Uses
Best Use
Retail
$1.35M
$1.18M – $1.58M
NOI $94,659 @ 7.0% cap · market cap 2.87%
Second Best
Industrial
$631.8K
$552.9K – $737.2K
NOI $44,229 @ 7.0% cap · market cap 1.34%
Theoretical Best
Office A
$1.63M
$1.43M – $1.90M
NOI $114,255 @ 7.0% cap · market cap 3.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
23,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
209
Businesses Nearby
10k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 95%
Shops & Services 5%
Scooter's Coffee
Dining
9,809 visits/mo
0.2 miles
Caliber Collision
Shops & Services
522 visits/mo
0.4 miles
Demographics for 37912, TN
22,313
Population
10,916
Households
2
Avg Household Size
36
Median Age
23%
College-Educated
88%
High-School Grad
10.6 sq mi
ZIP Area
2,105
Density / Sq Mi
$44,754
Median Household Income
$30,859
Median Earnings
$1,050
Median Rent
$185,600
Median Home Value
Market
Vacancy Rate% for Retail in Knoxville, TN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Tire Discounters — 2382 Old Callahan Dr, Knoxville, TN 37912
- Jiffy Lube — 6700 Clinton Hwy, Knoxville, TN 37912
- Big O Tires — 2440 Callahan Dr, Knoxville, TN 37912
- Custom Cycle Corner — 919 Murray Rd NW, Knoxville, TN 37912
- ACTS Fleet Maintenance Service — 6818 Sandy Vw Wy, Knoxville, TN 37912
Frequently Asked Questions
What type of property is this?
Auto shop - 2022-built office and service shop with paved site, 160 parking spaces, and 274 feet of frontage.
Where is this auto shop located?
The property is located at 1501 Callahan Drive Knoxville, TN.
What is the asking price?
The asking price for this property is $3,299,000.
What are key features of this property?
This property features: Former auto dealer property built in 2022, featuring an office building and service shop on a 8.96‑acre site; Includes 3,360 SF office building and a 3,230 SF service shop, both constructed in 2022; Site includes approximately 1.56 paved acres plus 274 ft of frontage and existing pylon signage
