Mixed-Use Office and
New
For Sale
$364,500
1306 Milligan Hwy, Johnson City, TN 37601
Office and apartment areas occupy separate levels, with independent lower-level access and rear parking.
Property Size2,470 SF
Price / SF$147.57
Days on Market6
Property Features for 1306 Milligan Hwy
General Information
Standard status
Active
Size
2,470 SF
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
1
Building Details
Year Built
1946
Buildings
1
Stories
2
Listing Agency:
Tammy Perry Properties
(828) 964-3692
Listed By:
Tammy Perry · License #261709
Source:
Thecolinandcarlygroup
Added: Aug 25
Changed: Aug 30
Last Checked: Aug 30 at 6:29AM
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 Tammy Perry Properties
Investment Insights
Based on property information with market context.
This mixed-use property combines an upper-level office with a lower-level apartment, providing distinct spaces within a 2,470-square-foot building constructed in 1946. The office includes a half bath. The apartment has its own entrance, full bathroom, compact kitchen and dining area, living room, laundry room, and two additional rooms suitable for bedroom or office use. A mini-split serves the apartment, and the property also includes a separate large storage area.
A rear parking area includes a carport, while the property provides direct access to Milligan Highway. The offering includes two lots and an on-site dumpster, adding land and operational features to the building configuration.
A rear parking area includes a carport, while the property provides direct access to Milligan Highway. The offering includes two lots and an on-site dumpster, adding land and operational features to the building configuration.
Key Highlights
- 2,470‑square‑foot mixed‑use building constructed in 1946
- Upper‑level office with half bath
- Lower‑level apartment with separate access, kitchen, bathroom, laundry, and two additional rooms
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
$30,011
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
8.23%
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%
$600,220
$600.2K
Cap Rate 7%
$428,729
$428.7K
Cap Rate 9%
$333,456
$333.5K
Market Conditions
NOI Build-Up for 2,470 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
$53.4K $21.60/SF
− Vacancy
−$5.3K −$2.16/SF
EGI
$48.0K $19.44/SF
− OpEx
−$18.0K −$7.29/SF
NOI
$30.0K $12.15/SF
Area
Washington County, TN
Vacancy
10.00%
Lease Rate
$21.60 /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%
$600,220
Cap Rate 7%
$428,729
Cap Rate 9%
$333,456
Alternative Uses
Best Use
Office B
$520.8K
$455.7K – $607.6K
NOI $36,457 @ 7.0% cap · market cap 10.00%
Second Best
Mixed Use
$428.7K
$375.1K – $500.2K
NOI $30,011 @ 7.0% cap · market cap 8.23%
Theoretical Best
Office A
$1.04M
$911.4K – $1.22M
NOI $72,914 @ 7.0% cap · market cap 20.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
97
Businesses Nearby
Explore this area
Business Placement
Demographics for 37601, TN
37,079
Population
18,153
Households
2
Avg Household Size
40
Median Age
33%
College-Educated
91%
High-School Grad
47.7 sq mi
ZIP Area
777
Density / Sq Mi
$49,658
Median Household Income
$32,312
Median Earnings
$892
Median Rent
$187,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Office and apartment areas occupy separate levels, with independent lower-level access and rear parking.
Where is this mixed-use property located?
The property is located at 1306 Milligan Hwy Johnson City, TN.
What is the asking price?
The asking price for this property is $364,500.
What are key features of this property?
This property features: 2,470‑square‑foot mixed‑use building constructed in 1946; Upper‑level office with half bath; Lower‑level apartment with separate access, kitchen, bathroom, laundry, and two additional rooms
